What is Peer-to-Peer Energy Trading?

In the afternoon of July 6, at the regular Government press conference, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan answered questions about the direct power purchase and sale mechanism that the Government has just issued. He shared that Decree 80, issued by the Government, introduces two mechanisms: power trading via dedicated lines and power trading via the national grid between renewable energy generators and large power consumers.

According to Mr. Tan, with this new mechanism, there will be challenges, especially regarding direct power trading through dedicated lines, independent of the national grid. As a result, renewable energy generators and large consumers will have to negotiate prices themselves. Since the contracts are guiding in nature, with specific contents left to the parties involved, there may be confusion in implementation.

Additionally, connecting to the national grid requires ensuring system stability and safe grid operation. Meeting customer demands and the ability of the power sector to meet those demands may also pose challenges.

Moreover, as this is a new mechanism, the National Load Dispatch Center, as the operating unit, will have to develop its own procedures.

“Since this is a new mechanism, there may be implementation difficulties. Therefore, we will forecast the situation and propose solutions. In an emergency, a task force will be established to monitor and respond quickly,” said the Deputy Minister of Industry and Trade.

According to Decree 80, direct power sales refer to the activity of buying and selling electricity through two forms: direct power sales via dedicated connection lines and direct power sales via the national grid.

Specifically, direct power sales via dedicated connection lines refer to the activity of signing power purchase agreements and exchanging electricity through dedicated connection lines between renewable energy generators and large power consumers. The power price is agreed upon by both parties.