[GEF2023] DPPA & Market Liberalization?Panel: Overview and Recommendations

Within GEF2023, this panel held an insightful discussion on Direct Power Purchase Agreements (DPPAs) & Market Liberalization. The session featured a lineup of distinguished experts who shared their invaluable insights and expertise on the market designs and latest regulatory developments of DPPAs, namely:?

• Moderator: Giles Cooper, Partner, Allens Pte Ltd, Hanoi Branch??
• Suji Kang, Head of the Asia Clean Energy Coalition in Vietnam, Asia Clean Energy Coalition?
• Mr. Pham Anh Thai, Deputy Director, Large Corporate Banking Department – Vietcombank Head Office, Vietcombank?

• Bruno Jaspaert, Managing Director, Deep C?
• Torben Minko, Managing Director, B.Braun??
• Mr. Robert Helms, Partner, Copenhagen Infrastructure Partners (CIP)?

In simple terms, the Direct Power Purchase Agreement allows direct purchase of clean energy from private generators for the first time in Vietnam. Report 158/BC-BCT from MOIT proposed 2 DPPA models:?

• Model 1: Private-wire DPPA (Physical/Behind-the-meter DPPA): power generation units and large electricity consumers conduct direct and independent purchases that are not restricted by technical conditions.??
• Model 2: On-national-grid DPPA?

The generator will not physically transfer electricity to the customer but sell the entirety of the generated electric energy to EVN in the wholesale electricity market. Either EVN's power companies will distribute electric energy to the customer at retail prices or buyers pay at spot market price, plus service costs.??

The requirement is that the power generation unit that owns wind or solar power plants must connect to the national power grid system and have a capacity of 10 MW or more.???

As the conversation surrounding DPPA intensifies, the GEF panel discussions have provided some key recommendations for the government to ensure an effective and mutually beneficial DPPA designs for multiple stakeholders.??

1. Expedite pilot DPPA project and expand DPPAs more broadly. It is essential that we reduce the front-end regulatory barriers to behind-the-meter clean energy plants.???

1. Encourage further cooperation and alignment with EVN to support DPPAs. A more aligned approach would protect both EVN and developers/operators against uncertainties in curtailment, dispute resolution, and price stability.?

1. Allow for new renewable energy plants with utility scale to be considered under DPPAs with suitable/fair criteria and effective procedure to approve such projects.?

1. Enable deployment of green energy to corporate end users with green energy commitments to afford continued FDI and allow for future expansion/attraction. Global companies within the “RE100 Group” have committed to a “100% clean energy” objective, which is only achievable with the immediate implementation of the DPPA Pilot Scheme with suitable criteria and effective procedures.?