On 27 and 28 October 2022, Power Engineering Consulting Joint Stock Company 3 (PECC3) attended two renewable energy events: ASEAN Wind Energy 2022 and Solar PV Show Vietnam 2022 at The Adora Center.
ASEAN Wind Energy 2022 (AWE2022) is one of the most prestigious international wind power events as well as the leading clean energy event in the region and it is increasingly known in the renewable energy sector in Southeast Asia. Solar PV Show Vietnam 2022 (SSV2022) is a premier information exchange and business networking platform between multiple stakeholders in Vietnam’s solar PV value chain. Both events were held with the participation of leading companies and organizations in the sectors of wind power and solar power. At the seminar, the experts shared their expertise and experience on financial policies and regulations, project development, resource management, and cooperation in the field of renewable energy.
Within the framework of AWE2022 and SSV2022, Mr. Nguyen Ngoc Phuc Dang – Legal Specialist of PECC3, gave a presentation on the pilot scheme of direct power purchase agreement (DPPA) between renewable energy generators and large electricity consumers.
The Draft of National Power Development Plan for the 2021-2030 period (PDP VIII) has re-planned the increase of renewable energy sources while reducing coal power since Vietnam has committed to net zero emissions by 2050. Thus, accelerating the DPPA mechanism is essential in the current period.
According to the financial DPPA pilot model, customers will make up for the difference if the spot market electricity price for the committed power output in the Contract for Difference (CFD) is lower than the agreed price. On the other hand, the Generator will pay the difference when the spot market electricity price is higher than the agreed price. This agreement will protect parties against financial risks caused by fluctuation of electricity market prices, thereby maintaining sustainable investment in renewable energy production. Generator signs a power purchase agreement with EVN to sell all the electricity on the spot electricity market.
With the Contract for Difference, DPPA takes advantage of financial resources from the private sector, especially from businesses committed to using clean energy, to ensure an attractive and stable electricity price, thereby encouraging long-term investment in renewable energy projects.
As one of the leading power engineering and consulting companies in Vietnam, PECC3 provides effective building solutions and professional technical support services with a highly qualified and dedicated team of engineers and consultants, contributing to the development of the country. Up to now, PECC3 has implemented more than 100 projects in the field of renewable energy with the ability to provide a full package of services, including: planning; wind resource assessment; preparation of pre-feasibility study report (PreFS), feasibility study report (FS) and planning supplement; integration research; project implementation consultancy; construction supervision; installation and operation…
Read more about two articles on the mechanism of DPPA between renewable energy generators and large electricity consumers: