Will submit for promulgation the direct power purchase mechanism DPPA in May

Speaking at the discussion group on May 23 within the framework of the 7th Session of the 15th National Assembly, delegate Truong Quoc Huy - National Assembly Delegation of Ha Nam province proposed that the Government soon issue the Decree on direct electricity purchase and sale DPPA.

Draft DPPA Decree to be submitted in May

According to the delegate, Ha Nam has many enterprises producing and exporting goods that need to use clean energy to increase competitiveness, so the delegate proposed that the government soon issue the Direct Power Purchase Mechanism DPPA.

Delegate Truong Quoc Huy (Photo: Thu Huong)

In addition, delegate Tran Quoc Tuan - National Assembly delegate of Tra Vinh province also proposed that DPPA expand and support the development of rooftop solar power. Currently, the Ministry of Industry and Trade has proposed that rooftop solar power be self-produced and self-consumed without the participation of a third party. According to the delegate, businesses without capital can ask a third party to invest and the business can buy it back as long as the business is encouraged to use that resource effectively.

Regarding the issue proposed by the Ha Nam provincial delegate, based on the Prime Minister's opinion on allowing the development and promulgation of a Decree regulating the direct power purchase mechanism (DPPA) according to simplified procedures and processes, the draft DPPA Decree stipulates 02 policies on direct power purchase between renewable energy power generation units and large electricity users via private lines and via the national grid, the Ministry of Industry and Trade has deployed the development and completion of the draft and is widely and publicly soliciting opinions.

The Draft Decree clearly states the following purposes: (i) Responding to customers' trend of using clean energy; (ii) Contributing to attracting investment in sustainable development of renewable energy and environmental protection; (iii) Being a necessary preparation step to switch to operating a competitive retail electricity market in Vietnam; and (iv) Improving the effectiveness of state management of direct electricity trading activities between power generation units and electricity customers.

As of May 23, 2024, the Ministry of Industry and Trade has received 300 comments and documents (13 documents from ministries and ministerial-level agencies, 48 ​​documents from provincial agencies, 33 documents from associations and electricity enterprises, direct comments at meetings and seminars, and no comments have been received on the portal). Currently, the Ministry of Industry and Trade is continuing to urgently complete the draft Decree to submit to the Government in May 2024.

It is necessary to clearly distinguish between the DPPA mechanism and the rooftop solar power mechanism.

Regarding the opinion of delegate Tran Quoc Tuan - National Assembly delegate of Tra Vinh province on developing self-produced and self-consumed rooftop solar power (SPP), previously, at the workshops to widely collect opinions in the business community, economic and social organizations, the Ministry of Industry and Trade said: The development of unlimited capacity SPP can only be implemented under the condition that technology develops and rooftop power does not put pressure on the national power transmission system. Without a stable source of electricity, no country can develop unlimited power from solar energy.

Delegate Tran Quoc Tuan - National Assembly Delegate of Tra Vinh province (Photo: quochoi.vn)

In the Draft Dossier proposing the development of a decree regulating the incentive mechanism for the development of self-produced and self-consumed renewable energy, which is seeking comments, the expected subjects of application include residential buildings, public offices, and industrial parks (According to Directive No. 05/CT-TTg dated February 14, 2024 of the Prime Minister).

Regarding the policy on excess electricity output: The Prime Minister approved in Decision No. 500/QD-TTg dated May 15, 2023 on approving the national electricity development plan for the period 2021-2030, with a vision to 2050, which stated the viewpoint and development goal of "By 2030, 50% of office buildings and 50% of houses will use self-produced and self-consumed rooftop solar power (for on-site consumption, not selling electricity to the national electricity system)". Thus, allowing the sale of excess electricity to the national electricity system will not be consistent with the Electricity Plan VIII approved by the Prime Minister.

In addition to self-produced and self-consumed rooftop solar power, according to the Master Plan VIII by 2030, there will be 2,600 MW of solar power. The capacity has been allocated to localities. If businesses want to do it, they must carry out project development procedures according to regulations (in the plan to implement the planning, select investors, construction procedures, fire prevention and fighting...).

On the other hand, the application of the upcoming DPPA mechanism is only a pilot and has been clearly stipulated in the Draft Decree submitted by the Ministry of Industry and Trade (submitted), only applicable to electricity sellers with a capacity of 10MW or more, and electricity buyers who are large customers with electricity consumption of 500 kWh and 1 million kWh. The reason for such a regulation is because it is also related to the management and operation of the power system, storage system and many other price mechanisms according to the provisions of law. Therefore, it is necessary to clearly distinguish between the DPPA mechanism and the rooftop solar power mechanism.

Although the needs of businesses are legitimate and very realistic, in terms of energy security, all mechanisms need to be suitable to the current status of Vietnam's electricity system, especially harmonizing the interests of all parties.

Source: https://congthuong.vn/se-trinh-ban-hanh-co-che-mua-ban-dien-truc-tiep-dppa-trong-thang-5-322202.html