Vietnam allows PPAs between IPP and power consumers

Facebook
Twitter
LinkedIn
Reddit
Email
IPPs can sell power to consumers directly after the introduction of the new regulation. Image: Sungrow

The Vietnamese government has announced that it will allow direct power purchase agreements (PPAs) between independent power producers and large electricity consumers.

In a statement, the Vietnamese government said there will be two ways to sell power to customers. First, the power can be sold via the national grid, which involves the purchase and sale of electricity via a term contract between an independent power producer (IPP) and a large electricity user or an authorised electricity retailer within a zonal or cluster model.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Large electricity users or retailers within a zonal or cluster model can sign electricity trading contracts with IPPs to purchase all the electricity needed to meet their demands.

Moreover, IPPs can sign an electricity trading contract with consumers, selling power via a private connection line.

According to data from the US International Trade Administration, Vietnam’s total technical potential for solar is up to 1,646GW, consisting of 1,569GW ground potential and 77GW water potential, while the total scale potential for large-scale solar PV projects nationwide is approximately 386GW.

Recently, Singaporean state-owned energy company Sembcorp completed the acquisition of 245MW of renewables projects in Vietnam.

After the entire acquisition is completed, Sembcorp’s renewables capacity in Vietnam will reach 455MW, while the group’s gross renewables capacity will be 14.4GW. Sembcorp announced the acquisition in late 2023. The assets have long-term power purchase agreements (PPAs) contracted with state-owned enterprise Vietnam Electricity. The deals were valued at S$218 million (US$160.3 million).

Some solar manufacturers have also expanded their business in Vietnam. In May, Trina Solar expanded operations at its Vietnam solar wafer manufacturing facility. Since beginning operations in August 2023, Trina said it has more than doubled the workforce at the Thai Nguyen facility and expanded operations to produce solar cells and modules, as well as wafers. It is currently ramping up capacity to a total production of 6.5GW of 210mm monocrystalline wafers, 4GW solar cells and 5GW modules.

Aside from Trina Solar, Tokyo-headquartered solar manufacturer VSUN has commenced commercial production of its 4GW silicon wafer plant in Vietnam. Construction of the plant started last November, with the first n-type 182.2×182.2mm n-type silicon wafer starting production.

8 October 2024
San Francisco Bay Area, USA
PV Tech has been running an annual PV CellTech Conference since 2016. PV CellTech USA, on 8-9 October 2024 is our second PV CellTech conference dedicated to the U.S. manufacturing sector. The event in 2023 was a sell out success and 2024 will once again gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing in the U.S. out to 2030 and beyond.
26 November 2024
Málaga, Spain
Understanding PV module supply to the European market in 2025. PV ModuleTech Europe 2024 is a two-day conference that tackles these challenges directly, with an agenda that addresses all aspects of module supplier selection; product availability, technology offerings, traceability of supply-chain, factory auditing, module testing and reliability, and company bankability.
11 March 2025
Frankfurt, Germany
The conference will gather the key stakeholders from PV manufacturing, equipment/materials, policy-making and strategy, capital equipment investment and all interested downstream channels and third-party entities. The goal is simple: to map out PV manufacturing out to 2030 and beyond.
17 June 2025
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 17-18 June 2025, will be our fourth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2026 and beyond.

Read Next

July 8, 2024
Southeast Asian independent power producer (IPP) Levanta Renewables has acquired a 139.4MWp operational solar PV portfolio in Thailand.
July 8, 2024
Danish investment bank Obton has established a JV with renewables investment firm GSSG Solar to acquire a 117MW solar portfolio in Japan.
July 8, 2024
Developer Fotowatio Renewable Ventures (FRV) Australia has announced its first solar-plus-storage project, based in Dalby, a town in Queensland, has gone live.
July 5, 2024
Dutch independent power producer (IPP) PowerField has put a 52MWh BESS at a PV plant into operation, co-located with a 28MWp solar PV plant, which the company claims is the largest such site in the Netherlands.
July 5, 2024
Singapore-headquartered renewable energy developer Peak Energy has signed a memorandum of understanding (MOU) to pursue a 50MW rooftop solar portfolio in South Korea.
July 5, 2024
Germany generated more power from renewable energy sources in the first half of 2024 than at any other time in its history, according to a report from the Fraunhofer Institute for Solar Energy Systems (ISE).

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 9, 2024
Sands Expo and Convention Centre, Singapore
Upcoming Webinars
July 10, 2024
9am (BST) / 10am (CEST)
Solar Media Events
September 24, 2024
Warsaw, Poland
Solar Media Events
September 24, 2024
Singapore, Asia
Solar Media Events
October 8, 2024
San Francisco Bay Area, USA