January 25, 2022 | 17:00
A retail electricity market would mark a step towards market liberalisation efforts that enable consumers to choose who they wish to buy electricity from. To realise such a market, Vietnam’s Law on Electricity, as well as related documents will require certain adjustments to accommodate purchase agreements and other tools.
|Electricity market revamp on cards|
The Electricity Regulatory Authority of Vietnam (ERAV) is finalising its report to the prime minister about planned direct power purchase agreements (DPPA) – a mechanism to allow renewable energy producers to sell electricity directly to end-users, as Nguyen Anh Tuan, director of the authority said on January 18.
The DPPA mechanism, if implemented, will be the first step in the development of the electricity retail market, allowing renewable energy generators with a capacity greater than 30MW to sell to customers for industrial production purposes. Parties can negotiate and agree on purchase and sale prices through long-term contracts if the scale of their deal is not exceeding 1,000MW.
Since 2012, the electricity market has contributed to increasing transparency in mobilising power plants, creating a competitive environment, enhancing the initiative of market participants, and gradually abolishing the monopoly in the industry.