MOIT Conference on the deployment of Decree 80/2024/ND-CP regulating DPPA

    Last Friday, 5th July 2024, VBF was pleased to attend the MOIT Conference on the deployment of Decree 80/2024/NĐ-CP regulating the direct power purchase agreement (DPPA) mechanism between renewable energy generators and large electricity users. The event was chaired by Minister Nguyen Hong Dien at the MOIT Head Office.

    VBF highly appreciates the collaborative efforts led by MOIT, which involved VBF in numerous discussions on the DPPA, especially the intensive sessions with Deputy Prime Minister Tran Hong Ha during the last few months. Speaking on behalf of VBF, Mr. Stuart Livesey, VBF Board Member, congratulated the Government of Vietnam on getting the DPPA Decree completed and officially issued. This important milestone will help more investments into energy transition, supply chain enhancements and attracting FDI investments in Vietnam.

    Within the Decree itself, VBF is particularly pleased to see that many of the comments from the industry and organizations have been considered, such as:

    • Reducing the minimum level of the power purchase output of 200,000 kWh/month for consumers, which will allow more investment opportunities to benefit from access to securing DPPAs by receiving green energy from RE sources.
    • Clearly allowing rooftop solar systems to be developed under physical DPPA model for commercial sale and purchase of power.
    • Expanding synthetic DPPAs for industrial parks and similar zones’ power retailer/utility companies and power consumers therein.
    • The additional form of offtake that the DPPA provides in comparison to a grid related PPA, which will greatly benefit businesses that have a green focus and commitments, and having the DPPA decree in place will help investment into green energy and attract further FDI in Vietnam.
    • The physical or direct line aspects of the DPPA decree approval, could also lead to a reduction in stress and demand on the national grid infrastructure, and should allow Vietnams transmission system to continue to mature and become even more efficient to manage the increasing demands across the country.

    As we move forward with the implementation of this important Decree, VBF remains dedicated to sharing best practices and providing consolidated inputs from industry and business associations. We look forward to continuing our collaboration with MOIT, ERAV, other central and local authorities, and EVN entities to ensure the successful implementation of this Decree.

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