On July 3, 2024, the Government issued Decree No. 80/2024/ND-CP regulating the mechanism for direct electricity purchases between renewable energy generators and large electricity consumers.
Subjects of Direct Electricity Purchase
Subjects of direct electricity purchase through a private connection line include:
- Renewable energy generators;
- Large electricity consumers.
Subjects of direct electricity purchase through the national grid include:
- Renewable energy generators using wind or solar power with a capacity of 10 MW or more connected to the national power system, directly participating in the competitive wholesale electricity market;
- Large electricity consumers for production purposes who buy electricity from the Electricity Corporation or a retail electricity unit other than the Electricity Corporation, connected to a voltage level of 22 kV or higher;
- Retail electricity units in industrial parks or clusters authorized by large electricity consumers for production purposes to purchase electricity from the Electricity Corporation, and enter into forward contracts with renewable energy generators (hereinafter referred to as retail electricity units in authorized parks or clusters).
Forms of Direct Electricity Purchase
According to this, direct electricity purchase is conducted through two forms:
- Direct electricity purchase through a private connection line: This involves signing electricity purchase contracts and delivering electricity through a private connection line between renewable energy generators and large electricity consumers as specified in Chapter II of Decree 80/2024.
- Direct electricity purchase through the national grid: This involves signing forward contracts between renewable energy generators and large electricity consumers (or retail electricity units in authorized parks or clusters) and conducting electricity purchase activities as specified in Chapter III of Decree 80/2024, including:
- Renewable energy generators sell all generated electricity to the spot market of the competitive wholesale electricity market;
- Large electricity consumers or retail electricity units in authorized parks or clusters sign electricity purchase contracts with the Electricity Corporation (or an authorized/delegated unit) to purchase all electricity needed;
- Renewable energy generators and large electricity consumers or retail electricity units in authorized parks or clusters conduct electricity purchase through forward contracts.
This Decree takes effect from July 3, 2024.
