Customers using electricity for industrial production can negotiate to buy electricity directly from solar and wind power plants through limited term contracts without going through EVN.
Trading wind power without EVN
The Ministry of Industry and Trade is collecting opinions on the pilot trading of renewable power (wind power, solar power) directly, not having to go through EVN based on the regulations of the competitive wholesale electricity market. With this decision, the ‘monopoly’ position in supplying electricity of EVN has changed.
Accordingly, the power consumers for industrial production (from 22 kV and above) can negotiate to buy electricity directly from solar and wind power plants without going through EVN, which helps to create fair and square competition for Vietnam’s electricity market.
Regulations on pilot direct power trading
Power trading will be conducted through the direct power market, operating in accordance with the competitive wholesale power market regulations of the Ministry of Industry and Trade. The Ministry of Industry and Trade is collecting opinions on the Draft Circular regulating the pilot direct power trading between the renewable power generating units and the power consumers (DPPA mechanism).
The DPPA mechanism will help businesses increase the rate of using renewable energy in their business and production activities up to 100% (this rate is almost impossible to achieve if only investing in rooftop solar power). This is very suitable for companies and corporations participating in the global network of commitments on renewable energy consumption and sustainable development.
The Ministry of Industry and Trade plans to pilot this mechanism in the period of 2021 – 2023 with a total capacity of about 1,000 MW. After piloting for one year, the Electricity Regulatory Authority (Ministry of Industry and Trade) will evaluate the market, technical, financial and legal aspects … to complete the content, report to the competent authorities to consider and decide to widely apply this mechanism.
When implementing this pilot mechanism, the competitive wholesale power market is completed, the competitive power retail is officially implemented, the direct power purchase and sale contract will be changed to comply with the new relevant regulations.
To participate, solar and wind power projects must be included in the planning
According to the Electricity Regulatory Authority (Ministry of Industry and Trade), power consumers participating in the pilot must have registration documents that meet the criteria, such as a commitment to use renewable energy; the rate of power output purchased by contracts in the first 3 years of participation in the pilot must be at least 80%.
On the side of power generating unit, to participate in this mechanism pilot, the wind and solar power projects must be included in the planning with the minimum installed capacity of 30 MW.
These projects must also commit to commercially operate, participate in the electricity market within 9 months from the announcement of getting selected by the competent authority. In addition, the project’s pilot application must also be accompanied by the documents proving financial support from financial and credit institutions.
Source: vn.sputniknews.com
