Solar power plants are allowed to sell electricity directly to customers through a private line or through the national grid
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The Ministry of Industry and Trade is seeking feedback on a draft Decree regulating the mechanism for direct electricity trading between renewable energy generators and large electricity consumers.
The Ministry of Industry and Trade proposes that renewable energy generators owning wind or solar power plants (Generators) will be allowed to sell electricity directly to large electricity consumers (enterprises producing and supplying services) through private lines or through the national grid.
Principles of direct electricity trading through private lines
The draft Decree clearly defines the principles of direct electricity trading through private lines:
For electricity trading through a private line connecting the Generator and the large electricity consumer, the parties must comply with current laws and regulations on: planning, investment (including consistency with the electricity development plan); regulations on the granting of electricity licenses (under the responsibility of the investor of the power source project); regulations on electrical safety, fire and explosion prevention safety in construction, operation (power generation, transmission, distribution) and safety in electricity use; regulations on electricity sales and contracts and other relevant legal regulations.
Generators and large electricity consumers are not subject to any restrictions on conditions such as capacity, output, grid connection voltage level, or purpose of electricity use when trading electricity.
The electricity sales contract between the Generator and the large electricity consumer in the case of electricity purchase through a direct connection line shall be agreed by the two parties, including the main contents specified in Article 22 of the Electricity Law and in accordance with other relevant legal documents.
The electricity price is agreed by the two parties, except in the case where the Generator is a retail electricity seller in industrial parks that combines purchasing electricity from the national grid with other electricity sources (on-site power plants; purchasing electricity from on-site sources such as wind power, solar power, biomass power) to retail electricity to electricity consumers in the industrial park. The retail electricity price for large electricity consumers is implemented in accordance with the regulations on the implementation of electricity prices and the amendments and supplements issued by competent authorities.
Direct electricity trading through the national grid
In addition, the draft Decree also outlines the principles of direct electricity trading through the national grid:
Generators: Owners of power plants with a design capacity of 10 MW or more that directly participate in the competitive wholesale electricity market.
In the initial stage, Generators owning wind or solar power plants connected to the national grid are allowed to participate in the direct electricity trading mechanism.
In the next stage, other types of generation technologies (hydropower, biomass, tidal, geothermal, etc.) will be expanded based on the demand of customers, Generators, and the development of the electricity system and competitive electricity market in Vietnam.
Large electricity consumers: Organizations and individuals in Vietnam that purchase electricity connected from voltage levels of 22 kV or higher, with an average monthly consumption of 500,000 kWh, including: Large customers currently purchasing electricity from EVN and large customers purchasing electricity from retail distribution units other than EVN.
In the initial stage, manufacturing customers are allowed to participate in the direct electricity trading mechanism.
In the next stage, other electricity consumers will be allowed to participate in the mechanism based on the demand of customers, Generators, and the development of the electricity system and competitive electricity market in Vietnam.
Large electricity consumers in industrial parks, economic zones, and export processing zones are allowed to participate in the direct electricity trading mechanism according to the provisions of this Decree when they meet the following conditions:
Reach an agreement with the electricity retailer in the industrial park, economic zone, or export processing zone to terminate the existing electricity sale and purchase contract in order to participate in the direct electricity trading mechanism;
The electricity meter of the large electricity consumer purchasing electricity directly from EVN meets the technical conditions as prescribed;
Reach an agreement with the electricity retailer in the industrial park, economic zone, or export processing zone on the retail fee within the boundaries of the industrial park, economic zone, or export processing zone (from the total electricity purchase meter of the retailer in the industrial park to the electricity retail meter for the customer).
