Developing a Direct Power Purchase Agreement Mechanism in Viet Nam

Corporate entities with facilities in Asia are increasingly interested in procuring renewable power to meet sustainability targets, hedge against power price volatility, and add resiliency to their power supply. However, restrictions within the transitional power markets found in many Asian countries present barriers to such Direct Power Purchase Agreements (DPPAs). This presentation described a stepwise approach to DPPA policy development proven effective in Viet Nam: (i) forming consumer coalitions; (ii) building awareness of the benefits of DPPAs; (iii) determining legal and regulatory requirements for DPPAs; (iv) aligning DPPAs with power market and renewable energy policies; (v) building the technical and operational capacity needed to facilitate DPPAs; and (vi) building credibility through pilot projects.