Image: Derek Sutton, Unsplash
According to state news agency Baochinhphu, the Vietnamese government this week issued new rules allowing DPPA between IPPs and energy consumers.
The new provisions were implemented through Decree No. 80/2024/ND-CP, which is now in force. The Ministry of Industry and Trade (MoIT) will oversee the development of the PPA market.
IPPs are allowed to sell electricity to buyers via the national electricity grid or via direct connecting lines.
In the first option, the sellers sign PPAs with the local utility company EVN, which in turn will sign PPAs with the buyers. Buyers and sellers will then sign contract-for-difference (CfD) deals based on a price per kilowatt.
Under the second option, IPPs and buyers directly agree on contract terms and have the option to sell excess power to EVN.
Before the new rules were introduced, the Vietnamese government supported large-scale solar energy through a feed-in tariff (FIT) program that expired in 2020.
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Vietnam had 17.07 GW of solar capacity at the end of last year, according to the latest data from the International Renewable Energy Agency (IRENA). About 11 GW of the total was installed in 2020, while only 1 GW was added in the previous three years.
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