Proposal to soon complete the mechanism for direct purchase and sale of LNG electricity

The theme of the 2025 forum is “Energy Transition: Vision and Action”.

The forum attracted the attention of policy-making agencies, international financial organizations, scientists and the business community. Photo: TH

Dr. Nguyen Quoc Thap - Chairman of the Vietnam Petroleum Association said that the forum was held when Vietnam is determined to realize its commitment to net zero emissions and enhance competitiveness in the green supply chain.

Over the past time, many of the Association’s recommendations have been accepted and reflected in policy documents. However, these adjustments are still not enough to completely remove bottlenecks in investment and operation of energy projects.

At the forum, experts identified and analyzed in depth the challenges in mobilizing resources for energy transition, especially institutional gaps and financial barriers.

Three main bottlenecks were identified: The electricity price mechanism does not accurately reflect investment risks and costs; the power purchase agreement (PPA) lacks commitments to offtake and foreign currency guarantees; and there is a lack of a legal framework for green finance and carbon markets.

From a policy perspective, key recommendations include: Legalizing green finance, standardizing investment norms for new technology, designing flexible PPAs by region - technology - scale, with key projects requiring realistic reference prices and clear underwriting mechanisms.

Petrovietnam proposed to synchronously complete the electricity price mechanism, PPAs, carbon credits and service infrastructure, to promote effective and sustainable energy transition. Petrovietnam affirmed its readiness to pioneer in creating a new energy ecosystem and proactively coordinate to propose institutional improvements.

The forum also affirmed Petrovietnam's role in ensuring energy for the economy, pioneering in creating an integrated and diverse energy ecosystem, from offshore wind power, LNG, hydrogen to CCS/CCUS, towards the goal of carbon neutrality and ensuring long-term energy security.

In particular, experts proposed to soon complete the direct power purchase mechanism (DPPA) between LNG power plants and large consumers to remove the bottleneck of offtake for BOT power projects, in order to create conditions for customers to have a basis to declare the energy source to create products (similar to the origin of goods).

This mechanism is especially important for large-scale LNG power plants – which require a commitment to purchase electricity from industrial customers who need clean, stable and internationally-standardized electricity for export production.

Source: https://hanoimoi.vn/de-xuat-som-hoan-thien-co-che-mua-ban-truc-tiep-dien-khi-lng-710659.html