Samsung Electronics seeks direct purchase of renewable energy

Samsung Electronics Vietnam is seeking support from the Vietnamese Government to enter into a direct power purchase agreement (DPPA) scheme that will enable it to directly purchase renewable energy from producers.

The information was heard at a recent meeting between its CEO Choi Joo Ho and Minister of Industry and Trade Nguyen Hong Dien.

Under the pilot scheme, independent renewable energy developers with an installed capacity of 30 MW or more are permitted to supply electricity directly to private consumers for industrial manufacturing purposes.

The scheme will be conducted nationwide with a limited total size of up to 1,000 MW.

Three or four other major enterprises also want to join the programme.

The Ministry of Industry and Trade (MoIT) plans to pilot the scheme from 2021 to 2023 at a scale ranging from 400 to 1,000 MW, according to director general of the ministry’s Electricity Regulatory Authority of Vietnam (ERAV) Nguyen Anh Tuan.

At the end of the trial period, the ministry will conduct a review and determine if the arrangement can be made permanent in 2024, he explained.

The scheme is seen as a win-win mechanism for both power generators and purchasers as it will enhance competition and help FDI firms access clean energy for production.

Once it begins, Electricity of Vietnam (EVN) will no longer be the only power distributor in Vietnam.