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ARTICLE · 19 APRIL 2021

Direct Power Purchase Agreement Mechanism Is Underway

Duane Morris LLP
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Recently, the Ministry of Industry and Trade has published the Draft Circular on the pilot implementation of the direct power purchase between renewable power project developers...

VietnamEnergy and Natural Resources
Oliver Massmann
Oliver Massmann
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Recently, the Ministry of Industry and Trade has published the Draft Circular on the pilot implementation of the direct power purchase between renewable power project developers (RE GENCO or GENCO) and consumers ("the Draft").

The pilot is to be implemented nationwide with a total capacity of selected projects of 1,000 MW at max. The nominal capacity of each project must be 30 MW. Consumers can directly negotiate, purchase electricity with GENCO under a Fixed-term Contract. The two parties shall agree upon electricity price and output in the Contract for future trading cycles. GENCO and the consumer must also calculate and carry out payment for the contract output under the Contract for the difference between the contract price and the market price (i.e. reference price).

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Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.

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