Dozens of projects want to sell electricity directly, without going through EVN

The Ministry of Industry and Trade has just continued to report to the Prime Minister and Deputy Prime Minister Tran Hong Ha on the study and development of a direct electricity purchase and sale mechanism between renewable energy power generation units (DPPA).

According to the Ministry of Industry and Trade, a survey of 95 renewable energy projects in May 2022 by a consulting unit showed that 24/95 projects wanted to buy and sell "clean" electricity without going through the Vietnam Electricity Group (EVN).

In addition, 17 renewable energy power generation projects are considering the conditions for participating in this mechanism as well as the ability to find and sign contracts with customers.

In addition, after screening and consulting, this agency sent survey forms to 41 customers, of which 24 customers responded that they wanted to participate in the DPPA direct electricity purchase mechanism, with a total demand of 1,125 MW (estimated).

wind power.jpg — The mechanism for direct electricity trading is still waiting for the Decree. (Photo: Hoang Ha)

According to the Ministry of Industry and Trade, in the case of electricity trading through direct private lines (not through the national grid), the implementation has a full legal basis for implementation. Therefore, the Ministry of Industry and Trade will guide the units in accordance with the provisions of current law.

However, the DPPA mechanism in the case of electricity trading through the national grid is still quite complicated, so the Ministry of Industry and Trade recommends that the Prime Minister consider and direct.

The Ministry believes that, to ensure the legal basis, there are currently two options for issuing the DPPA mechanism.

Option 1 : Accept the opinion of the Ministry of Justice on the possibility of including regulations on the DPPA mechanism in the Electricity Law. However, the implementation of the DPPA mechanism will depend on the promulgation deadline and the effective date of the amended Electricity Law.

The Electricity Law is in the process of proposing amendments (expected to be issued in 2025, effective in 2026).

Option 2 : To implement the provisions of Article 70 of the Electricity Law, the Ministry of Industry and Trade recommends that the Government issue a Decree regulating the implementation of the DPPA mechanism.

In case Article 70 of the Electricity Law does not meet the requirements as a basis for promulgating a Government decree, it is possible to consider reporting to the National Assembly and the National Assembly Standing Committee for consideration and promulgation of a resolution of the National Assembly and the National Assembly Standing Committee on assigning the Government to perform this task according to the provisions of Clause 3, Article 19 of the Law on promulgation of legal documents.

After reviewing the Government's direction, the Ministry of Industry and Trade proposed that the Prime Minister consider issuing the DPPA mechanism in the form of a Government decree.

In fact, since January 2020, the Ministry of Industry and Trade has submitted many reports to the Government to issue the DPPA mechanism. The form of documents to implement the DPPA mechanism has also been continuously changed by the Ministry: from proposing to issue the DPPA mechanism in the form of a circular, to converting it into a decision of the Prime Minister. In this latest report, the form of documents has been converted into a Government decree.

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