February 7 (Renewables Now) - Vietnam is preparing to launch a pilot programme that will facilitate the signing of synthetic power purchase agreements (PPAs) between private power buyers and renewable energy producers, targeting contracts for up to 1 GW in 2020-2022.
The size of the direct PPA programme, to be available nationwide, is envisaged in the range of 400 MW to 1,000 MW, under a proposal submitted by the Ministry of Industry and Trade of Vietnam (MOIT). The plan is subject to public comments and approval by the Prime Minister.
The renewable power generators that can participate will be limited to wind and solar parks of at least 30 MW in size, with priority being given to projects in areas with no or limited grid congestion risks, law firm Baker McKenzie explains in a summary of the MOIT proposal. The power consumers participating in the programme will be limited to companies engaged in industrial manufacturing. Priority will be given to customers who have set climate change mitigation and sustainability targets with international commitments.
Power producers and consumers willing to negotiate PPAs under the programme will register via an electronic information portal.
The combined capacity of corporate PPAs for clean energy agreed in 2019 reached 19.5 GW, up by over 40% year-on-year, according to BloombergNEF (BNEF).