Roof-Mounted Solar Power: Direct Sales, Cutting Out the Middleman

This decree outlines two forms of electricity trading in Vietnam: through dedicated connection lines and the national power grid.

Direct electricity trading through dedicated connection lines involves power purchase agreements and physical delivery of electricity between renewable energy generators and large power consumers via dedicated connection lines.

Direct electricity trading through the national power grid is facilitated through forward contracts between renewable energy generators and large power consumers.

The government mandates that renewable energy generators sell all their produced electricity into the day-ahead wholesale electricity market.

Large power consumers or authorized retail electricity units within zone/cluster models are required to enter into power purchase agreements with the Power Corporation or authorized/delegated entities to procure their entire electricity demand.

Renewable energy generators and large power consumers or retail electricity units within zone/cluster models are authorized to trade electricity through forward contracts.

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Regarding direct electricity trading through dedicated connection lines, the government stipulates that renewable energy generators and large power consumers execute their trades through dedicated connection lines, adhering to mutually agreed-upon power purchase agreements and negotiated electricity prices.

Renewable energy generators are tasked with negotiating and finalizing forward contracts for capacity, output, and excess electricity pricing with the Vietnam Electricity Group (or an authorized entity) as per regulations.

In addition to the aforementioned direct electricity trading through dedicated connection lines, large power consumers are permitted to trade electricity with the Power Corporation (or a non-Power Corporation retail electricity entity) as governed by relevant regulations.

In scenarios where an electricity entity simultaneously functions as a generator and a retail electricity provider within zone/cluster models, purchasing electricity from both on-site sources and the national power grid to supply consumers, the retail electricity pricing shall conform to the Regulations on Implementing Electricity Prices issued by the Ministry of Industry and Trade.

Concerning direct electricity trading through the national power grid, the decree also elucidates the sale of electricity by renewable energy generators in the day-ahead market and the electricity trading dynamics with the Power Corporation.

As per regulations, the day-ahead market price is the total wholesale electricity market price formed during each trading cycle in the day-ahead market. It comprises the energy market price and the capacity market price, which are determined according to the Regulations on Operating the Competitive Wholesale Electricity Market issued by the Ministry of Industry and Trade.