The Government has just issued Decree No. 80/2024/ND-CP dated July 3, 2024, regulating the mechanism for direct electricity purchase and sale between renewable energy generators and large electricity users.
Decree No. 80/2024/ND-CP stipulates that direct electricity trading is the activity of buying, selling and receiving electricity carried out through 02 forms:
Direct electricity trading via Private Connection Line is the activity of signing an electricity trading contract and delivering electricity via Private Connection Line between a renewable energy power generation unit and a large electricity user as prescribed in Chapter II of this Decree.
Buy and sell electricity directly through the National Grid is the activity of buying and selling electricity through a term contract between a renewable energy generator and a large electricity user (or an electricity retailer in authorized zone or cluster models) and the activity of buying and selling electricity is carried out according to the provisions of Chapter III of this Decree, including:
- Renewable energy power generation units sell all produced electricity to the spot electricity market of the competitive wholesale electricity market;
- Large electricity users or electricity retailers in authorized regional and cluster models sign electricity purchase contracts with the Electricity Corporation (or authorized/decentralized units) to purchase all electricity to meet their needs;
- Renewable energy generators and large electricity users or electricity retailers in regional and cluster models are authorized to buy and sell electricity through term contracts.
Principles of direct electricity purchase and sale via Private Connection Line
About Direct electricity trading through separate connection lines , the Decree stipulates that renewable energy power generation units and large electricity users conduct direct electricity trading through separate connection lines according to the following principles:
- The electricity purchase and sale contract between the renewable energy generator and the large electricity user in the case of direct electricity purchase and sale through the Private Connection Line is agreed upon by both parties in accordance with the provisions of Article 22 of the Electricity Law and relevant legal documents, including the following main contents: Contract subject; purpose of use; service standards and quality; rights and obligations of the parties; electricity price, payment method and term; conditions for contract termination; liability for breach of contract; term of contract; responsibility for investment, construction, management and operation of the Private Connection Line; other contents agreed upon by both parties;
- The electricity selling price is agreed upon by the two parties, except for the case specified in Clause 4, Article 6 of this Decree.
Renewable energy power generation units negotiate, agree and sign electricity purchase and sale contracts on capacity, output and price for surplus electricity output with Vietnam Electricity Group (or authorized unit) according to regulations.
In addition to the direct electricity trading activities via separate connection lines specified above, large electricity users are allowed to trade electricity with the Electricity Corporation (or electricity retailers other than the Electricity Corporation) according to regulations.
In case the Power Unit performs both the power generation function and the power retail function in the regional and cluster models, and simultaneously purchases power from the national power system along with other local power sources to retail power to customers using electricity in the regional and cluster models, the retail price of electricity for customers is implemented according to the Regulations on the implementation of electricity prices issued by the Ministry of Industry and Trade.
Spot electricity market price
About The Decree also clearly stipulates the sale of electricity by renewable energy generators through the spot electricity market and the purchase and sale of electricity with the Electricity Corporation.
According to regulations, the spot electricity market price is the total electricity market price formed according to each trading cycle of the spot electricity market and is determined by the sum of the market electricity price and the market capacity price. In which, the market electricity price and the market capacity price are determined according to the Regulations on the operation of the competitive wholesale electricity market issued by the Ministry of Industry and Trade.
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