DPPA approval a win for clean energy

July 23, 2024 | 10:50

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The US Department of State’s Bureau of Energy Resources (ENR) applauded the Vietnamese government's approval of a direct power purchase agreement (DPPA) on July 3, a significant milestone towards achieving net-zero emissions by 2050.

This policy, championed by both domestic and international private sector companies and investors, establishes clear mechanisms for large energy consumers to purchase clean energy.

The new policy allows businesses in Vietnam to directly purchase renewable power from private electricity producers. This will support an increase in private sector investment and realise economic growth by matching corporations’ emission reduction targets with Vietnam’s clean energy and investment goals.

ENR’s Clean Energy Demand Initiative (CEDI), in partnership with the Clean Energy Buyers Alliance, will continue to facilitate dialogue between the private sector and Vietnam to support implementation of the DPPA and advance US investments in clean energy in the country.

The CEDI is a public/private platform that connects countries with companies, across all sectors, that have committed to powering their operations with clean energy.

CEDI seeks to advance the adoption of policies, regulations, and procurement frameworks that support clean, resilient, and affordable energy systems.

The approval of Vietnam’s DPPA will enable CEDI and its partners to unlock up to $8 billion in clean energy investments in Vietnam.

Vietnam authorises DPPA for rooftop solar and biomass projects

A recently issued government decree permits rooftop solar, waste-to-energy, and biomass projects to engage in direct power purchase agreements (DPPA) without routing through Vietnam Electricity (EVN).