Solar power plants are allowed to sell directly to customers via private lines or through the national grid
The Ministry of Industry and Trade is seeking opinions on a draft Decree regulating the mechanism for direct electricity sales between renewable energy generators and large electricity consumers.
In the draft, 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 (manufacturing and service enterprises) through private lines or the national grid.
Principles of direct electricity sales via private lines
The draft Decree clearly states the principles of direct electricity sales via private lines:
For electricity trading activities via private lines directly connecting Generators and large electricity consumers, the parties must comply with current legal regulations on: planning, investment (including compliance with the electricity development plan); regulations on the granting of electricity operating licenses (under the responsibility of the Investor of the power plant project); regulations on electrical safety, fire prevention, and explosion 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 restrictions on conditions such as capacity, output, voltage level of connection, or purpose of electricity use when buying and selling electricity.
The electricity purchase and sale contract between the Generator and the Large Electricity Consumer in the case of electricity purchase via a direct connection line is agreed upon 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 upon by the two parties, except in the case where the Generator is a retail electricity seller in industrial parks that combines electricity from the national electricity system with other electricity sources (on-site power plants; electricity purchase from on-site electricity 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 according to the regulations on the implementation of electricity prices and the amendments and supplements issued by the competent authority.
Direct electricity sales via the national grid
In addition, the draft Decree also clarifies the principles of the form of direct electricity sales via the national grid:
Generators
Owning power plants with a design capacity of 10 MW or more directly participating in the competitive wholesale electricity market.
In the initial stage, Generators owning wind or solar power plants connected to the national electricity system will be allowed to participate in the direct electricity sales mechanism.
In the next stage, continue to expand other types of power generation technologies (hydropower, biomass, tidal, geothermal, …) based on the needs of customers, generators, and the development of the electricity system and competitive electricity market in Vietnam.
Large electricity consumers
Organizations and individuals in Vietnam purchase electricity connected from a voltage level of 22 kV or higher, with an average monthly consumption of 500,000 kWh, including: Large customers currently purchasing electricity from the Electricity Corporation and Large customers purchasing electricity from Distribution and retail units other than the Electricity Corporation.
In the initial stage, allow manufacturing customers to participate in the direct electricity sales mechanism.
In the next stage, continue to expand to other electricity consumers to participate in the mechanism based on the needs of customers, generators, the development of the electricity system and competitive electricity market in Vietnam.
Large electricity consumers in industrial zones, economic zones, and export processing zones are allowed to participate in the direct electricity sales mechanism according to the regulations in this Decree when meeting the following conditions:
Agreement with the retail electricity seller in the industrial zone, economic zone, or export processing zone on terminating the existing electricity purchase and sale contract to participate in the direct electricity sales mechanism;
Agreement with the retail electricity seller in the industrial zone, economic zone, or export processing zone on the retail fee within the industrial zone, economic zone, or export processing zone (from the total electricity purchase meter of the retail seller in the industrial zone to the electricity retail meter for customers).
