Following the issuance of the long-awaited Decree No. 80/2024/ND-CP on mechanisms for Direct Power Purchase Agreement (DPPA) (“DPPA Decree”), on 1 August 2024, the Prime Minister issued Decision No. 753/QD-TTG to approve the policy for transfer of right to represent State Capital ownership at National Power System Operation Center (A0) from the Committee for Management of State Capital in Enterprises to the Ministry of Industry and Trade (MOIT) (“Decision 753”). According to Decision 753, after the separation of A0 from EVN to establish the National Power System and Market Operation (NSMO) in accordance with Decision No. 752/QD-TTg of the Prime Minister dated 1 August 2024, the ownership rights of NMSO will be transferred from EVN to the MOIT whereby all relevant authorities must participate in the transfer to ensure the compliance of the transfer with the prevailing regulations.
By this action of decentralization of power long held by EVN, the Government is looking to foster a more competitive and transparent electricity market. With the issuance of DPPA Decree and Decision 753, the Government has recognized the importance of independent power generators and has taken bold action to promote the development of renewable energy sources. Restructuring under Decision 753 may result in reduced power rates and a greater selection of service choices for the retail electricity sector. It is anticipated that this action would stimulate innovation, increase productivity, and eventually help Vietnamese consumers.
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Please do not hesitate to contact Dr. Oliver Massmann at omassmann@duanemorris.com if you have any questions. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.