Vietnam Issues New Decree to Streamline Direct Energy Purchases Between Renewable Units and Large Electricity Customers

The Vietnamese government has enacted Decree 80/2024/ND-CP, outlining mechanisms for direct energy purchases between renewable energy producers and large electricity consumers. The decree permits two forms of direct energy transactions:

• Dedicated Connection Line: This involves a direct power purchase agreement and electricity delivery via a dedicated line connecting a renewable energy unit with a large electricity customer.
• National Grid: This entails buying and selling electricity through a term contract between a renewable energy producer and a large electricity customer, or an authorized retail electricity supplier within designated areas.

Renewable energy producers must negotiate and sign power purchase agreements covering capacity, output, and surplus electricity prices with Vietnam Electricity (EVN) or an authorized entity. Large electricity customers can also buy electricity from EVN or other retail suppliers, with prices regulated by the Ministry of Industry and Trade.

For transactions via dedicated lines, contracts must include terms on subjects, uses, service standards, rights and obligations, pricing, payment methods, contract duration, and conditions for termination and breach of contract. Both parties must agree on electricity prices, except in specified cases.

When trading through the national grid, renewable energy generators will sell electricity on the spot market, with prices determined by market electricity and capacity prices as per regulations from the Ministry of Industry and Trade.

This decree aims to streamline direct electricity trading, enhance the competitive wholesale market, and support the integration of renewable energy sources into Vietnam’s power supply, fostering a more sustainable energy sector.