Effective from July 3, 2024, Decree 80 outlines the framework for DPPAs, aiming to enhance the collaboration between renewable energy suppliers and major electricity users.

To ensure consistent and effective implementation, the Ministry of Industry and Trade has instructed provincial and city authorities to direct their specialized electricity departments to oversee and monitor compliance among renewable energy producers and large electricity consumers within their jurisdictions.

The Ministry emphasized the importance of adherence to various legal regulations, including:

- Planning and Investment: Ensuring alignment with national electricity development plans and provincially approved plans.

- Licensing Requirements: Meeting all electricity operation licensing standards.

- Fire Safety and Prevention: Complying with fire safety regulations.

- Land Use and Environmental Protection: Following land use and environmental protection laws.

- Electricity Usage Safety: Adhering to safety standards in electricity usage.

- Electricity Trading and Contractual Regulations: Observing legal provisions related to electricity trading and contracts.

Local authorities are tasked with managing the list of large electricity consumers engaging in direct power purchases through dedicated connection lines. They must also inspect, monitor, address complaints, and handle violations during the implementation of the DPPA mechanism.

In addition to the directive to local authorities, the Ministry of Industry and Trade has also issued guidance to EVN and its affiliated units to facilitate the implementation of Decree 80. This collaboration is crucial for the seamless integration of DPPAs into the existing energy framework.

A representative from a renewable energy company shared with VietNamNet that both large electricity consumers and producers are highly enthusiastic about the decree. The Ministry's detailed approach to addressing transmission costs and electricity system operation expenses has been particularly well-received.

"With this initiative, once full pricing is available, large electricity consumers and electricity producers can sit down to negotiate these contracts," the investor noted.

The Ministry of Industry and Trade's directive aims to ensure the smooth and unified implementation of Decree 80, promoting the development of direct power purchase agreements between renewable energy producers and large electricity consumers. This initiative is expected to foster greater collaboration in the energy sector, enhancing the use of renewable energy sources and contributing to sustainable development in Vietnam.

Hanh Nguyen