Guidance on implementing Decree 80/2024 on the mechanisms for direct electricity trading between renewable energy generation units and clients who are large electricity consumers in Vietnam

The Ministry of Industry and Trade has Official Dispatch 5029/BCT-DTDL in 2024 to implement Decree 80/2024/ND-CP on the mechanisms for direct electricity trading between renewable energy generation units and clients who are large electricity consumers in Vietnam.

Guidance on implementing Decree 80/2024 on the mechanisms for direct electricity trading between renewable energy generation units and clients who are large electricity consumers in Vietnam (Image from the internet)

Guidance on implementing Decree 80/2024 on the mechanisms for direct electricity trading between renewable energy generation units and clients who are large electricity consumers in Vietnam

To ensure Decree 80/2024/ND-CP is implemented uniformly and effectively nationwide, the Ministry of Industry and Trade requests units to promptly execute several contents, specifically for direct power purchase through Private Wire:

1. Vietnam Electricity (EVN):

- Organize dissemination and training for subordinate units to implement Decree 80/2024/ND-CP in July 2024.

- Negotiate and agree (or authorize) to sign surplus power purchase agreements with renewable power generation units according to current regulations.

2. Power Corporations:

- Research and develop procedures to implement related tasks stipulated in Decree 80/2024/ND-CP.

- Collaborate with relevant Dispatch centers and units to check and evaluate technical conditions at the connection points before and after participating in DPPA, ensuring compliance with technical requirements in connection, operation management in the Distribution Grid Regulations, and the National Power System Dispatching Regulations issued by the Ministry of Industry and Trade.

- Promptly identify and report arising issues and difficulties during the implementation of Decree 80/2024/ND-CP.

- Monitor and manage the list of large power consumers under management participating in the direct power purchase mechanism.

- Inform large power consumers and retail electricity units in zone and cluster models (Clause 7, Article 3 of Decree 80/2024/ND-CP specifies “The retail electricity unit in industrial zones, economic zones, export processing zones, industrial clusters, high-tech zones, information technology zones, agricultural zones applying high technology, and other similar models regulated by competent authorities (hereinafter referred to as retail electricity unit in zones/clusters) is an electricity unit licensed to operate in the retail electricity field in these zones/clusters with a purchase volume of 200,000 kWh/month or more at a connection voltage of 22kV or higher”) by July 2024.

3. National Electricity System Dispatching Center:

- Monitor and manage the list of large power consumers and renewable power generation units participating in the direct power purchase mechanism via Private Wire to ensure system security operations.

- Inform renewable power generation units of the content of the guiding documents by July 2024.

4. Renewable power generation units: stipulated in Clause 6, Article 3 of Decree 80/2024/ND-CP.

- Comply with the legal regulations on planning, investment; licensing for electricity operation; electrical safety regulations, fire, explosion prevention safety in construction, land, environmental protection, operation (power generation, transmission, distribution), and use safety according to Article 5 of Decree 80/2024/ND-CP.

- Actively negotiate and sign power purchase agreements: (1) with large power consumers (LPC); (2) cooperate with LPC to negotiate and sign surplus power purchase agreements with EVN according to Article 6 of Decree 80/2024/ND-CP.

- Comply with technical conditions at the connection points before and after participating in the direct power purchase through Private Wire, ensuring technical regulations for providing safe, stable, and continuous power supply according to Article 7 of Decree 80/2024/ND-CP.

- Actively identify and promptly reflect arising issues and difficulties during the mechanism implementation to the competent authorities.

5. For Large Power Consumers (LPC): are organizations and individuals consuming an average electricity volume of 200,000 kWh/month or more (details in Clause 12, Article 3 of Decree 80/2024/ND-CP).

- Negotiate and sign power purchase agreements with renewable power generation units according to Article 6 of Decree 80/2024/ND-CP.

- Comply with technical conditions at the connection points before and after participating in the direct power purchase mechanism, ensuring technical regulations for providing safe, stable, and continuous power supply according to Article 8 of Decree 80/2024/ND-CP.

- Implement reporting policies according to Clause 1 and Clause 2 of Article 28 of Decree 80/2024/ND-CP.

- Actively identify and promptly reflect any signs of abuse or arising issues during the mechanism implementation to the competent authorities.

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