Direct electricity trading mechanism for Vietnam promulgated

On 3 July 2024, Decree No. 80/2024 of the Government of Vietnam (“Decree 80”) laying down regulations on direct electricity trading mechanism between renewable energy generators and large electricity users was initialed, effective. Notable points are below:
– Renewable Energy (RE) Generation Units
       Solar, wind, small hydro, biomass, geothermal, tidal… and rooftop solar systems with electricity operation license (EOL) or exempted from               EOL.

Modes

1. Private line sale and purchase of power
(a) RE generation units;
(b) Large electricity consumers.
– Power purchase agreement (PPA) price to be mutually agreed among the generator
and the consumer. Except where the generation unit performs retail as well, combining
power purchase from the national grid and on-site for retail [here, pricing shall be as per
the Ministry of Industry and Trade (MoIT) release].
2. Sale and purchase of power through the National grid
(a) Grid connected solar and wind generation units with a capacity of 10MW and above,
participating in competitive wholesale electricity market (Trading cycle – 30 minutes (each,
per trading day). Transmission loss is recognized and the payment cycle is 1 month (on
the electricity market), from 1st day of each month.
(b) Industrial consumers buying power from Vietnam Electricity (EVN)/retailers with
connection voltage level being 22kV or above, with an output of 200,000 kWh/month
(average on preceding 12 months);
(c) Power retailers in zones, clusters authorized by large consumers for production purposes,
buying electricity from EVN through a forward contract with the RE generation units.

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