Vietnam commerce and industry federation urges direct renewable energy sales

By Phuong Dung   May 7, 2024 | 03:00 am PT
Vietnam commerce and industry federation urges direct renewable energy sales
Wind turbines are seen in central Ninh Thuan Province. Photo by VnExpress/Quynh Tran
Everyone should be allowed to buy renewable energy directly from producers instead of through national utility Electricity Vietnam, the Vietnam Federation of Commerce and Industry has said.

The suggestion came in response to the Ministry of Industry and Trade’s draft of a Direct Power Purchase Agreement (DPPA) that would allow such direct purchase through separate transmission lines by those consuming at least 500,000 kWh a month.

But all others have to buy from the national grid operated by EVN.

The VCCI rejected the limit saying the impact of the direct power purchases on the national grid is negligible.

Concurring, the Department of Industry and Trade of Thai Nguyen Province said allowing consumers to buy directly could ease the strain on power suppliers.

The VCCI also called for scrapping a proposed requirement that direct buyers must have a grid infrastructure to transmit the energy bought and a management team to operate it.

The VCCI also pointed out that the DPPA would help maintain a balance between renewable energy supply and demand.

Manufacturing enterprises, especially those exporting to developed markets, could use renewable energy to fulfill their ESG (Environmental, Social, and Governance) responsibilities, it added.

The mechanism was demanded by some foreign investors to create competition in the energy sector.

Major foreign companies such as Samsung, Heineken and Nike can consume more than one million kilowatt-hours a month.

A survey by the trade ministry at the end of last year found that some 20 large enterprises wanted to be able to directly buy a total of 1,000 MW (1 million kilowatt).

Besides, 24 renewable energy projects with a combined capacity of 1,773 MW wanted to sell power through DPPA, while 17 others with a combined 2,836 MW said they are interested in the mechanism, the survey found.

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