- VinEnergo seeks direct electricity sales to consumers, bypassing EVN.
- The company requests DPPA access for retail electricity providers.
- The move aims to enhance transparency and energy market efficiency.
VinEnergo, a part of Vietnam’s top private conglomerate Vingroup, has suggested selling electricity directly to consumers rather than through the state-owned utility Vietnam Electricity (EVN), as is currently done.
The business submitted the suggestion while responding to a draft parliamentary resolution intended to eliminate barriers to the growth of national energy for the 2026-2030 timeframe, which is prepared by the Ministry of Industry and Trade (MoIT).
It noted that the draft lacks provisions permitting electricity retailers in residential regions, urban developments, commercial areas, service zones, and similar setups to engage directly in the Direct Power Purchase Agreement (DPPA) mechanism.
VinEnergo states that in numerous residential and urban locations, the demand for electricity is highly concentrated. Electricity supply is still fully reliant on EVN, as there is presently no system that permits retail electricity providers connected to urban developers to participate in the competitive electricity market.
The company thought that implementing regulations for electricity retailers in residential and urban areas is essential to reflect real demand and aid the coordinated growth of energy infrastructure together with urban infrastructure.
This action would also foster transparency and cohesive supply management, while stimulating private investment in energy infrastructure, improving competitiveness and energy efficiency, and safeguarding the rightful interests of local residents. Consequently, VinEnergo suggested adding a provision that permits retail electricity units in residential regions, urban areas, and analogous frameworks to engage directly in electricity trading.
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The proposal specifically indicates that electricity retailers functioning in residential neighborhoods, urban developments, commercial, and service areas or analogous models as outlined by relevant authorities, should be permitted to engage directly in the DPPA mechanism, contingent upon fulfilling specific requirements.
It states that if the investor of a residential or urban project possesses the power grid infrastructure, they should be permitted to direct electricity sales to end-users in that region.
At present, the DPPA mechanism serves merely as a preliminary stage for a completely liberalized electricity retail market, it observed. Consequently, the ministry maintained that competitive mechanisms such as DPPA should be applied to retail electricity providers only after the stable operation of the competitive retail market, underpinned by a strong legal framework that guarantees consumer protection.