PHOTO: AG Greenenergy

Consumers will have the right to directly enter into contracts and electricity price agreements with renewable energy generators.

The Ministry of Industry and Trade has just sent out the direction of Minister Tran Tuan Anh to request the Electricity Regulatory Authority to synthesize the opinions of relevant ministries on the draft mechanism for piloting direct electricity purchase and sale between renewable energy generation units and electricity users (DPPA mechanism) to to submit to the Prime Minister for approval.

Under this mechanism, electricity users will have the right to directly enter into contracts and negotiate electricity price with renewable energy generators. The Ministry of Industry and Trade plan to pilot this mechanism in the period 2021 - 2023 with a capacity of about 400 - 1,000 MW, after that it will be evaluated, reviewed for official appilcation (from 2024 onwards).

The project proposes a policy on direct power purchase agreement (DPPA) mechanism implemented by the US Agency for International Development (USAID) in cooperation with the Ministry of Industry and Trade, expected to be approved by the Government in 2020. and come into commercial deployment by March 2021 to complete the pilot competitive electricity retailing program in December 2023.

Source: The Youth Newspaper