On the afternoon of May 19, the Prime Minister welcomed Mr. Fujimoto Masayoshi, General Director of Sojitz Group, on the occasion of attending the G7 Summit in Japan.
Mr. Fujimoto Masayoshi proposed Vietnam soon introduce a direct power purchase and sale mechanism (DDPA) .Then, factories in industrial zones can participate in direct power purchase contracts. This will have a positive impact on the competition of Vietnam’s energy industry.
The Prime Minister said that the Power Master Plan VIII prioritizes to develop renewable energy. Following this plan, Vietnam will pilot and proceed to develop a direct power purchase agreement (DDPA) mechanism between renewable electricity producers and electricity users. This is done in conjunction with the revision of the Electricity Law and the roadmap for the implementation of a competitive market in Vietnam.
According to the draft of the Ministry of Industry and Trade, the buyer and seller negotiate and agree to buy electricity directly from solar and wind power plants through a price forward contract. Electricity purchase and sale transactions will be carried out through the spot electricity market, operating in accordance with the regulations on the competitive wholesale electricity market of the Ministry of Industry and Trade.