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Vietnam set to run PPA pilot scheme for renewable energy

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Vietnam’s Ministry of Industry and Trade (MIOT) is planning a pilot scheme to open up Vietnam’s electricity market to bilateral power purchase agreements (PPAs), which would enable renewable energy generators to directly sell electricity to private off-takers under virtual or synthetic deals.

Currently in Vietnam, the state-owned energy company Electricity Vietnam (EVN) has monopolized the transmission, distribution, wholesale and retail of electricity and is the sole buyer in the market.

The scheme, which has yet to be launched, was scheduled to run between 2022 and 2024, with expectations now pointing to the first quarter of 2023. The official program following the pilot scheme should then start in 2025.

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