US Ambassador to Vietnam Marc Knapper commended the Ministry of Industry and Trade for bringing this mechanism to life. The US Agency for International Development (USAID) has been providing technical support to Vietnam’s Ministry of Industry and Trade since 2017 to design and implement this mechanism.
The new decree, No. 80/2024/ND-CP, was issued on July 3 and regulates direct electricity trading through private connection lines or the national grid. Businesses and energy producers can now negotiate prices directly, though the Ministry will regulate certain prices. Renewable energy sources, including solar, wind, hydro, biomass, and geothermal, can be traded through these private lines, provided they have the necessary operating licenses.
This policy allows businesses in Vietnam to purchase renewable energy directly, helping them meet their sustainability commitments and reduce greenhouse gas emissions. The US Embassy believes this will attract private investment in renewable energy and support Vietnam’s goal of achieving net-zero emissions by 2050. USAID Vietnam Director Aler Grubbs emphasized that the US will continue to support Vietnam in expanding access to clean energy.
The direct electricity trading mechanism has been highly anticipated by foreign direct investment (FDI) enterprises, particularly those in the US, Europe, and Asia, operating in high-tech and manufacturing sectors. These companies require assurances that their production electricity is 100% clean to meet global climate goals and emission reduction commitments.
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Source: Vietnam Insider