People sitting in conference room
RCEE-NIRAS Technical Director explained typical DPPA models to members of REBA Vietnam.

Unlocking DPPA in Vietnam

NIRAS helps develop Direct Power Purchase Agreements in Vietnam

The facilitation of more direct trading between renewable energy providers and private sector consumers will help Vietnam become greener.

Vietnam seeks to ramp up it’s renewable energy generation from solar and wind power to 1,650 megawatts (MW) by 2020 and to 18,000 MW by 2030.

To support this goal, the United States Agency for International Development (USAID) and Vietnam’s Ministry of Industry and Trade (MOIT) are working on a project that aims to enable private sector electricity buyers and renewable energy providers to enter into Direct Power Purchase Agreements (DPPA).

The DPPAs will allow Vietnam’s businesses to competitively procure renewable energy and the competitiveness will create new business opportunities for world-class clean energy technologies.

NIRAS helps preparing for DPPAs

In collaboration with Electricity Regulatory Authority of Vietnam (ERAV), a team comprising both international experts from Deloitte Consulting LPP and national experts from RCEE-NIRAS address key concerns on DPPAs, so that a piloting program can be considered. The considerations cover:

  • Legal permissibility determination and identifying potential legal barriers to DPPAs
  • International model analysis and gaining experiences from other countries that successfully implemented DPPAs
  • Recommendations on DPPA model(s) for Vietnam, based on international best practice and taking into account the local context
  • Analysis of market demand for DPPAs
  • Identifying required changes in VN law and regulation, once DPPA is deployed

A number of public awareness activities has been implementing to promote and support the adoption of DPPAs in Vietnam:

  • Announcements regarding DPPA pilots and commitments at APEC Leaders Conference in Da Nang city, Vietnam, November 5 – 11, 2017
  • REBA (Renewable Energy Buyer Alliance) Vietnam Roundtable Discussion in Ho Chi Minh city, Vietnam on December 7th, 2017

DPPA will be presented and discussed publicly in various energy-economic-environment workshops and events between December 2017 and March 2018. It is expected that a pilot DPPA program will be launched during the fourth quarter of 2018.