FDI firms may not need to buy electricity directly from EVN

The plan is expected to be submitted to the Ministry of Industry and Trade next month.

Under the plan, in which the Vietnam Low Emission Energy program will associate with the Electricity Regulatory Authority of Vietnam, 200 FDI firms in Vietnam will join tenders to buy electricity directly from private producers of renewable energy.

These FDI firms will use mainly renewable energy in their production and business activities.

If the plan is approved by the Government, renewable energy plants with a capacity of five to 60 megawatt peak will be invited to participate in the plan.

The price of electricity bought from these plants may be higher than EVN’s electricity price, but enterprises will be entitled to many other benefits, such as easier access to bank loans.

The competitive power retail market is expected to be officially launched in 2023. By the time, besides FDI firms, other large firms and five power corporations should be able to sign contracts to buy electricity from private producers of renewable energy.

According to Franz Gerner, the World Bank’s lead energy economist, the Vietnamese Government should study other countries’ experience in the operation of a competitive electricity retail market as many countries have stopped these operations due to the market’s instability.