Government approves direct sales of renewable power

Updated: 14:04, 04/07/2024

Rooftop solar and other renewable power can now be sold directly through private transmission lines without having to go through Vietnam Electricity as an intermediary.

Wind, biomass, micro-hydropower, geothermal, wave, and tidal energy plants are also included in the government’s decree on direct power purchase agreement (DPPA) for renewable energy issued Wednesday.

A rooftop solar energy system installed at the Dong Nai Port.

Waste-to-energy plants are excluded since they are not officially categorized as a renewable source, the Ministry of Industry and Trade said.

There are no capacity limits on the direct sales, but producers must have a license to supply electricity or express waiver from this requirement, according to the decree.

They also have the option to sell to the national grid, either through the spot electricity market or EVN.

Solar and wind energy generators must have a capacity of at least 10MW to sign a supply deal.

Buyers and sellers can negotiate their own terms and prices for the direct sales, and excess production can be sold to EVN at pre-determined prices.

Buyers too can purchase electricity from EVN. They can also buy from non-EVN energy retailers.

In all cases, buyers must be entities that use power for production and have a minimum monthly consumption of 200,000 kWh. A typical household uses a few hundred kilowatt-hours a month.

An EVN survey found around 7,700 of its customers consume 200,000 kWh or more per month, accounting for 36.5% of total electricity consumption.

In the country there are over 103,000 rooftop solar units with a total capacity of over 9,500 MW.