Expanding access opportunities, reducing dependence on EVN
In the draft Decree guiding the provisions of the Electricity Law on the mechanism of direct electricity trading, which is being consulted, the Ministry of Industry and Trade proposes that large electricity customers be allowed to participate in direct electricity trading. The conditions for participation are that large electricity customers are connected to a voltage level of 22kV or higher and consume an average of 200,000 kWh per month.
Commenting on this draft, the Vietnam Federation of Commerce and Industry (VCCI) proposed lowering the threshold for average electricity consumption to participate in direct electricity trading, especially in cases of trading via private lines.
According to VCCI, many smaller businesses have a need to use renewable electricity to meet the requirements of export partners or international standards.
Speaking with Lao Dong, Dr. Mac Quoc Anh - Vice President and General Secretary of the Hanoi Association of Small and Medium Enterprises - said that in the context of green transformation and meeting international standards on sustainable production, the demand for renewable electricity of small and medium enterprises (SMEs) is increasing.
However, with the current regulations on the Direct Power Purchase Agreement (DPPA), many SMEs do not meet the criteria of an average consumption of 200,000 kWh/month, despite the real demand. Therefore, expanding access to renewable energy sources by lowering the participation conditions will meet the wishes of small businesses, helping them to access clean energy more easily.
Participation in the DPPA mechanism will help SMEs use renewable energy sources, thereby meeting the requirements of international partners and reducing carbon emissions. By accessing renewable energy sources at reasonable costs, SMEs will reduce production costs and increase competitiveness in domestic and international markets.
Participating in the DPPA mechanism helps businesses be more proactive in choosing renewable energy suppliers that suit their production needs, instead of being completely dependent on EVN. This will create healthy competition in the electricity industry and promote sustainable development.
However, without specific support mechanisms or guidance, many SMEs may find it difficult to negotiate contracts and understand how the DPPA mechanism works. Therefore, additional training programs, technical assistance and financial incentives are needed to help SMEs participate effectively.
Need to have a reasonable implementation plan
The proposal to lower the threshold would help small businesses access renewable energy. At the same time, allowing more businesses to participate in electricity trading would create a more competitive environment, helping to reduce electricity prices and improve energy efficiency. However, it is important to note the risks and shortcomings of this proposal in ensuring energy security, infrastructure and management.
According to Dr. Mac Quoc Anh, if the DPPA participants are expanded too much, the current transmission system or renewable energy sources may not be able to meet the demand. This requires greater investment in transmission infrastructure and the development of renewable energy sources.
As more businesses participate, the coordination of supply, balancing the grid and monitoring direct power purchase contracts will become more complicated. This requires the Ministry of Industry and Trade and relevant parties to build a transparent and effective management mechanism.
“Reasonably lower the output threshold: The Ministry of Industry and Trade should consider an appropriate electricity consumption threshold (for example, 100,000 kWh/month or lower for businesses using private lines). To avoid overload, priority should be given to businesses with specific plans for green transformation and long-term commitment to using renewable electricity,” Dr. Mac Quoc Anh suggested.
According to Associate Professor Dr. Dinh Trong Thinh, although the proposal of VCCI has the advantage of helping many businesses access, ensuring 24/7 energy security is very difficult. When renewable energy sources are not enough, businesses still have to rely on the national grid, but the grid cannot meet sudden demand. Careful consideration and calculation are needed to ensure energy security.
“The proposal of VCCI has a lot of potential to promote development and create conditions for small businesses, but needs to be carefully considered and have a reasonable implementation plan to avoid possible risks and shortcomings” - Associate Professor, Dr. Dinh Trong Thinh assessed.
