Vietnam ministry to ease direct power purchase agreement rules

By Tri Duc
Tue, December 24, 2024 | 5:17 pm GMT+7

Vietnam’s Ministry of Industry and Trade is drafting amendments to Decree 80/2024 on direct power purchase agreement (DPPA) mechanism, with easier terms on large consumers.

Decree 80/2024 stipulates large consumers as those with electricity connection of at least 22 kV for manufacturing activities. They can purchase electricity from state utility Vietnam Electricity (EVN) and electricity retailers.

According to the latest draft decree, large consumers are those with electricity connection of at least 22 kV. They can purchase electricity from EVN, provincial/municipal units of EVN, and electricity retailers.

PECC2 and H&M sign an MoU on DPPA in Ho Chi Minh City, November 19, 2024. Photo courtesy of PECC2.

PECC2 and H&M sign an MoU on DPPA in Ho Chi Minh City, November 19, 2024. Photo courtesy of PECC2.

Besides, Decree 80/2024 defines electricity retailers as those delegated by large consumers to buy electricity from EVN and renewable energy units, with the purchase of at least 200,000 kWh per month and the electricity connection of at least 22 kV.

The latest draft decree revises that electricity retailers are those delegated by large consumers to buy electricity from EVN, provincial/municipal units of EVN, and renewable energy units.

While Decree 80/2024 became effective on July 3, 2024, the ministry aims to put the new decree into effective from February 1, 2025.

The most recent DPPA cooperations in Vietnam include one between Power Engineering Consulting JSC 2 (PECC2) and fashion brand H&M signed in November, and another between PECC2 and First Solar signed in December.

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