Dau Tieng Solar Power Project in Vietnam. (Photo: Wikimedia Commons)
The European Chamber of Commerce in Vietnam (EuroCham) in its latest annual "White Book" highlighted that a significant number of global corporations in Vietnam express their hope to purchase green power directly from generators through the Direct Power Purchase Agreements (DPPA), instead of relying on the state-owned Electricity of Vietnam (EVN), to achieve more stable and cheaper power supply.
EuroCham’s White Book provides analysis and recommendations for policymakers, businesses, academia, and relevant stakeholders regarding the Vietnamese market, to promote investment and trading between Vietnam and Europe.
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EuroCham releases 2024 Whitebook on Jan. 16. (Photo: The European Chamber of Commerce in Vietnam)
As the power market in Vietnam has not fully liberalized, with the retail of most energy resources, including green energy, controlled by EVN and its subsidiaries, power pricing is considered relatively high. Therefore, enterprises are hoping to buy electricity directly from generators. Additionally, since the limitation of the power transmission grid system, EVN prioritizes cutting renewable electricity capacity in oversupply periods, leading enterprises to face the dilemma of having no green electricity available.
EuroCham suggests that the Vietnamese government expedite release standards and procedures to identify suitable DPPA pilot projects. With the success of DPPA implementation, it is anticipated to boost the utilization of rooftop solar energy.
Suij Kang, Asia Program Director of the Asia Clean Energy Coalition (ACEC), stated that global corporations in Vietnam such as Google, Samsung, and Nike have set their green energy targets. Consequently, there is a demand to purchase directly green electricity from power plants. The promotion of DPPA is expected to attract large enterprises to invest in renewable energy development.
EuroCham also emphasizes the need for private sector participation in the construction and upgrading of Vietnam's transmission grid to avoid delays in the project implementation. They also call for the establishment of clear mechanisms for developers to invest and alleviate the financial pressure of EVN. EVN should play the role of a supervisor, ensuring that the quality and specifications of the power transmission network comply with regulations.
