This May 2022, the Ministry of Industry and Trade (MOIT) publishes the second draft Decision for DPPA Pilot Program on its website for stakeholders’ review and comments. It is planned that in the last quarter of 2022, MOIT will submit the final draft for the Prime Minister’s approval. Consequently, it is expected that the Decision will be approved by the Prime Minister in 2023.

Key points under the second draft DPPA Decision

Mandatory Eligibility Criteria:
1. Tariffed Customers: existing industrial customers taking service at 22kV or higher
2. Project Size: larger than 30 MW
3. Technology Type: wind or solar PV
4. Renewable Energy Generating Company: owns power plants that are either (i) ready to COD but are not eligible for FiT mechanism or (ii) under construction, included in Power Development Plan and identified investor and will achieve COD within 270 working days
5. Commercial Agreements: project parties directly negotiate and sign a contract for differences (CfD) which dictates a strike price, an amount of power, and duration of the agreement

Participants Selection Criteria:
1. Satisfy mandatory eligibility criteria,
2. Has no generation capacity limitation due to grid overload as of the registered COD,
3. Has no PPA with EVN, which is still valid at the time of registration for participation, and
4. Has a binding in-principle agreement with consumer.

Within 60 working days from the effective of the Decision (estimated in 2023), interested parties can apply to join the DPPA pilot program. Duane Morris could assist interested parties to join the program, please let us know if you require our assistance.

We will keep you updated of any new development in this regard. Please do not hesitate to contact Dr. Oliver Massmann under if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

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The opinions expressed on this blog are those of the author and are not to be construed as legal advice.

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