Deputy Prime Minister Trần Hồng Hà speaks at the conference on the draft decree on direct power purchase agreement (DPPA) mechanism between renewable energy generators and large customers on Friday. — VNA/VNS Photo Văn Điệp

HÀ NỘI — Deputy Prime Minister Trần Hồng Hà asked the effort to create favourable condition for the implementation of direct power purchase and ensuring the power system safety.

Speaking at the conference on the draft decree on direct power purchase agreement (DPPA) mechanism between renewable energy generators and large customers on Friday, Hà urged the Ministry of Industry to complete the draft decree while provide a more persuasive explanation in terms of technical issues and ground for giving priorities to wind, solar and small hydro-power plants over waste-to-energy, biomass and thermopower.

The draft decree also needs to clarify participants of the DPPA mechanisms.

Agreeing that the DPPA should be encouraged not to be implemented via the national grid, Hà said that the focus should be on ensuring the system safety and fire prevention as well as compliance to established investment, trade and tax regulations.

In case the DPPA is implemented via the national grid, Hà asked the ministry to clarify financial mechanism in infrastructure investment and development and other costs to ensure fairness, and efficiency.

Besides, it is necessary to clarify responsibilities of the State management agencies, especially Việt Nam Electricity, in ensuring the national power system safety and having timely adjustments to the eighth national power develop plan (PDP8) and promoting renewable energy developments.

There should be regulations to priority renewable energy generators which have solutions for storage and emergency handling.

The draft decree also needs to regulate the procedures to certify green credit for users in line with the world.

Deputy Minister of Industry and Trade Nguyễn Sinh Nhật Tân said that currently, renewable energy projects with the capacity from 10MW will be allowed to participate in DPPA via the national grid, meaning that they directly participate in the wholesale electricity market.

When the operation is smooth, the capacity limit can be removed, Tân said.

The large customers are proposed to be those who use electricity from 500,000 kWh per month, estimated at around 3,000 customers and making up for 30 per cent of the total electricity consumption.

This threshold is selected with an aim to harmonise the benefits between relevant parties, including customers and EVN.

Tân cited statistics that there are nearly 1,500 customers using from 1 million kWh per month, accounting for 26 per cent of the total electricity consumption. There are about 7,700 customers using from 200,000 kWh per month, or 36.5 per cent of the total electricity consumption.