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On March 3, 2025, the Government issued Decree No. 57/2025/ND-CP, an important legal document regulating the direct power purchase agreement (DPPA) mechanism between renewable energy generators and large electricity consumers, to replace Decree 80/2024/ND-CP issued in July 2024.
Decree 57/2025/ND-CP has new and notable changes, being consistent with the content of the Electricity Law (amended) and Decree 135/2024/ND-CP on mechanisms and policies to encourage the development of self-produced and self-consumed rooftop solar power, as well as accepting some expert comments in the recent past:
Some points to note:
– Subjects of direct power purchase through the national grid include biomass power generation units (Article 2.2.a);
– Conditions on capacity and consumption output for large electricity customers will follow the regulations of the Minister of Industry and Trade in accordance with each development period of the electricity system instead of specific regulations on consumption from 200,000 kWh/month or more connected to a voltage level of 22 kV or higher as in Decree 80/2024/ND-CP;
– The condition on electricity purchase output from at least 200,000 kWh/month and voltage level of at least 22 kV for electricity retailers is removed. (Article 3.6);
– The electricity price in the form of private-wire direct power purchase is agreed upon by the parties but does not exceed the maximum price of the electricity generation price frame as prescribed (Article 6.1.b);
– Rooftop solar power generation units could register to sell electricity to the grid at maximum 20% of the actual electricity output at the prescribed electricity price (Article 6.3);
– Rooftop solar power generation units selling electricity directly to large electricity consumers in industrial zone could sell their surplus electricity to the electricity retailers here. The purchase and sale price of surplus electricity is agreed upon by both parties but does not exceed the maximum price of the electricity generation price frame of ground-mounted solar power (Article 6.4).
Additionally, the National Power System and Market Operator Company Limited (NSMO) is defined as the unit operating the power system and the electricity market instead of the National Load Dispatch Center as before. NSMO will be the unit receiving dossiers and implementing procedures for participating in direct power purchase through the national grid. In general, the Decree maintains the viewpoint of minimal administrative procedures, creating favorable conditions for enterprises to participate in the direct power purchase market; while clearly stipulates the rights and obligations of the parties, especially the responsibilities of state agencies, to ensure a balance of interests and responsibilities.
