Why is it necessary to implement the direct electricity purchase mechanism soon?

DNHN - Implementing the direct electricity purchase mechanism brings many economic and environmental benefits and creates condition for the sustainable development of the electricity sector. Thus, this mechanism has become increasingly necessary and urgent.

The implementation of the direct electricity purchase mechanism brings significant benefits to both the electricity sector and consumers. First, this mechanism helps increase competition in the electricity market, thereby encouraging electricity producers, especially those using renewable energy, to provide electricity at more competitive prices. This contributes to reducing electricity costs for consumers and businesses while encouraging investment in renewable energy and energy efficiency projects.

Additionally, the direct electricity purchase mechanism helps improve energy use efficiency, reduce greenhouse gas emissions, and protect the environment. Large electricity consumers can choose clean and sustainable electricity sources, thereby positively contributing to the country's sustainable development goals. Implementing this mechanism also helps increase transparency and fairness in the electricity market, encouraging technological innovation and more efficient management in the electricity sector.

Recently, the Ministry of Industry and Trade issued two consecutive documents to implement Decree 80 on the direct electricity purchase mechanism between renewable energy producers and large electricity consumers. First, the People's Committees of 63 provinces and cities were instructed to direct specialized electricity agencies to inspect and supervise compliance with the regulations in Decree 80 and related laws, including planning, investment, safety, environmental protection, and electricity trading regulations.

Accordingly, the Ministry of Industry and Trade requested localities and EVN to implement Decree 80 on direct electricity purchases between renewable energy producers and large electricity consumers. Provinces and cities were tasked with managing the customer list and monitoring compliance with related legal regulations.

Through this mechanism, the Ministry of Industry and Trade aims to promote green production and develop a competitive electricity market, contributing to enhancing management efficiency and competition in the electricity sector.

Previously, at a meeting on the direct electricity purchase mechanism (DDPA), Deputy Prime Minister Tran Hong Ha requested the Ministry of Industry and Trade to review and learn from experiences to clarify the related content on the authority to issue. He urged the Ministry to complete the report on this mechanism and submit it to the Prime Minister.

Deputy Prime Minister Tran Hong Ha emphasized that the application of the DDPA mechanism is urgent, ensuring the effectiveness of investment plans for electricity sources and national energy security, in line with the Resolution of the Politburo and the regulations on competitive wholesale electricity market operations in Vietnam.

Moreover, the direct electricity purchase mechanism helps increase economic efficiency by facilitating direct transactions between electricity producers and consumers. Instead of going through an intermediary step, such as traditional electricity companies, this mechanism allows consumers and electricity producers to agree on prices and quantities directly. This helps reduce operating costs and creates favorable conditions for both parties.

Therefore, implementing the direct electricity purchase mechanism also encourages the use of renewable energy, such as solar and wind energy. Thanks to this mechanism, investors in the renewable energy sector can access the direct electricity consumption market, creating motivation to invest in and develop renewable energy projects. This not only helps reduce dependence on fossil energy sources but also helps reduce CO2 emissions and protect the environment.

Additionally, the direct electricity purchase mechanism also creates conditions for the development of a diverse electricity market. Instead of only one electricity company being responsible for supplying electricity, this mechanism allows multiple electricity producers and consumers to participate in the market. This creates competition and encourages the growth of new electricity producers, improving service quality and increasing choices for consumers.

The early application of the mechanism to purchase surplus electricity from rooftop solar power systems is an important step to encourage the use of renewable energy and reduce the load on the national grid. This not only helps households save costs but also positively contributes to environmental protection and energy sustainability.

Nhan Ha