The direct power purchase and sale mechanism (DPPA) is applied to 2 subjects: renewable energy power generation units and large power customers with 2 forms of power purchase and sale including: direct power purchase and sale through the private connection grid and through the national grid.
Buying and selling electricity through the national grid
With the form of direct power purchase and sale through the national grid, renewable energy power generation units (wind, solar power, PV) with a capacity of 10MW or more connected to the national grid directly participating in the competitive wholesale market.
Customers using large amounts of electricity to serve production and business buy electricity from corporations/power companies or retail electricity units that connect to supply 22kV or more of electricity and other subjects...
The Decree also stipulates general requirements for renewable energy power generation units and customers using large electricity when participating in the DPPA mechanism.
Accordingly, it is necessary to comply with the provisions of the law on:
Planning and investment (belonging to the responsibility of the investor of the power source project, including compliance with the national power development plan, the power supply network development plan in the provincial planning, the plan to implement the national power development plan, the plan to implement the provincial planning, including content on the power supply network development plan, land use plan in the locality where the project is implemented and adjustment decisions (if any);
Regulations on granting power operation licenses (under the responsibility of the investor of power source projects);
Regulations on electrical safety in construction, operation (power supply, power transmission, power distribution) and safety in electricity use;
Regulations on construction, land, environmental protection and fire and explosion safety; regulations in electricity purchase and sale contracts;
Regulations on electricity trading and other relevant legal provisions.
Direct electricity purchase and sale through a separate connected power grid
renewable energy power generation units and large electricity customers conduct direct electricity purchase and sale through the separate connected power grid according to the following principles:
The electricity purchase and sale contract between a renewable energy power generation unit and a large electricity user is agreed upon by both parties in accordance with the provisions of Article 44 of the Electricity Law and other relevant legal provisions, including the following main contents:
- Information of the parties;
- Purpose of use;
- Service standards and quality;
- Rights and obligations of the parties;
- Electricity price, payment method and payment period;
- Conditions for contract termination;
- Responsibility for breach of contract;
- Contract term;
- Responsibility for investment, construction, management and operation of separate power grids;
- Other contents agreed upon by both parties.
The electricity price is negotiated by the parties and does not exceed the maximum price of the power generation price framework of the corresponding power source type.
