US commends Vietnam for approving DPPA decree

‘The U.S. Mission in Vietnam, through the U.S. Agency for International Development (USAID), has provided technical assistance to the Ministry of Industry and Trade (MoIT) since 2017 on the design, development, and approval of the DPPA. USAID will continue to work with MoIT on the implementation of the DPPA.

“I sincerely congratulate MoIT for its dedication and hard work in making the DPPA a reality,” said U.S. Ambassador to Vietnam Marc Knapper at the DPPA launch event on July 5. “Our Comprehensive Strategic Partnership marks a new era of cooperation between our two nations, and the DPPA is a testament to our deepening ties and shared commitment to sustainable development.”

Once implemented, the new policy will allow businesses in Vietnam to purchase electricity directly from private renewable energy companies, enabling them to power their operations with 100% renewable energy. This will help Vietnam attract private sector investment in renewable energy while meeting the needs of corporate leaders who want to integrate renewable energy into their operations and achieve their corporations’ emission reduction goals.

“The U.S. Mission in Vietnam through USAID is honored to have partnered with MoIT over the past several years to achieve this milestone,” said USAID/Vietnam Mission Director Aler Grubbs. “The DPPA will enable businesses to reduce their carbon footprint while enabling Vietnam to accelerate its transition to clean energy and achieve its net-zero emissions goal by 2050. The United States remains a partner with Vietnam as you implement this important initiative and expand Vietnam’s access to clean and renewable energy.”

The DPPA will enable international and domestic businesses in Vietnam to achieve greater carbon reductions toward their net-zero goals while accelerating the country’s clean energy transformation. The United States is working with Vietnam to reduce greenhouse gas emissions and increase climate resilience for the most vulnerable, in part by supporting a just and inclusive energy transition.

The United States is a committed partner to Vietnam in promoting the country’s transformation toward a clean, safe, and market-based energy sector, consistent with the two countries’ shared priorities under the Comprehensive Strategic Partnership.

24 renewable energy projects show interest in a direct power purchase agreement A total of 24 renewable energy projects with a combined capacity of 1,773 MW have expressed interest in participating in a pilot direct power purchase agreement (DPPA) in Vietnam, according to a report by the Ministry of Industry and Trade (MoIT) submitted to Prime Minister Pham Minh Chinh last week.

The DPPA Decree may require additions The draft decree on direct power purchase agreements, if adopted, will be a convenient mechanism for both renewable energy projects and large customers. However, concerns remain about the transmission of electricity and increasing the number of its buyers.

DPPA Improvement Closer to Acceptance The business community has been calling for a relaxation of regulations to allow large consumers to buy and sell electricity directly.