Offshore wind power positively contributes to energy security. (Photo: Duc Duy/Vietnam+)
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#direct power purchase #DPPA #press conference
According to Mr. Tan, on July 3, the Government issued Decree 80/2024/ND-CP regulating the mechanism for direct purchase between renewable energy generators and large power consumers. Notably, the Government allows renewable energy developers to sell directly to large customers through dedicated lines or using the national transmission grid of EVN.
Two days after the issuance of the Decree, on July 5, the Minister of Industry and Trade chaired a conference with 63 provinces and cities, ministries, sectors, central agencies, and relevant international organizations on the regulations on direct power purchase stipulated in Decree 80.
Mr. Tan stated that Decree 80/CP on the mechanism for power purchase between renewable energy developers and large customers is the first of its kind, and as a new policy, it may face challenges in practical implementation.
The first challenge, he said, is that in the case of direct power purchase through dedicated lines without connecting to the national grid, the two parties involved, namely the renewable energy generator and the large power consumer, will have to discuss the contract themselves.
At Decree 80/2024/ND-CP, this contract is oriented, and specific contents related to purchase, exchange, pricing, etc., will be subject to agreement between the two parties. I think there may be confusion in implementation, especially for the power operator, who may not know the basis for negotiation,” said Mr. Tan.
The second challenge is that in the case of direct power purchase with a connection to the national grid, it is clear that the system’s integrity and safe operation must be ensured. There may be a mismatch between customer demand and supply capacity at certain points.
The third difficulty is that, as this is a new mechanism, the power generators, power companies, and especially the operators (system dispatch centers) will have to use separate procedures to implement it.
From a state management perspective, the Ministry of Industry and Trade will monitor and provide guidance. Essentially, the task has been assigned to the units for implementation, and we are also trying to review and deploy synchronously and smoothly during the process.
Deputy Minister Nguyen Sinh Nhat Tan answers reporters’ questions on the implementation of Decree 80/CP. (Photo: Duc Duy/Vietnam+)
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Deputy Minister Nguyen Sinh Nhat Tan said that the Minister of Industry and Trade had given clear directions at the conference on July 5. For local authorities, it is necessary to create favorable conditions and review planning to synchronize solutions related to construction and fire prevention to develop renewable energy plants that meet the needs of large power consumers in the direct power purchase mechanism.
For EVN – the operator of the national power system, the Ministry of Industry and Trade has requested to develop procedures and regulations to implement the Decree and meet the registration needs of large customers and renewable energy generators.
The Ministry of Industry and Trade has also assigned its units, directly the Electricity Regulatory Authority of Vietnam, to coordinate with relevant units to review and study amendments to circulars and regulations to support and ensure the effectiveness of the direct power purchase mechanism in the future.
“As this is a new mechanism, we have anticipated the situation and proposed solutions. We have also established a task force to monitor and respond promptly during the implementation of the Decree,” Mr. Tan emphasized./.
Duc Duy
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