DPPA effectiveness hinges on suitable pricing mechanisms

Vietnam’s direct power purchase agreement mechanism and battery energy storage systems are expected to become key enablers of industrial decarbonisation, but legal and pricing issues continue to slow the flow of green electricity into industrial areas.

- By Nha Phuong

Industrial complexes such as Amata, Long Duc, and DEEP C have emerged as frontrunners in renewable energy deployment. However, experts say the current legal framework remains ill-suited for behind-the-meter electricity-sharing models, preventing businesses within the same facility from directly exchanging renewable power.

Nguyen Nhu Thanh Thu, head of Renewable Energy at DEEP C Industrial Zones in Haiphong city, said at a forum last week hosted by the Vietnam Chamber of Commerce and Industry said the park has already moved ahead with an integrated green energy model.

“DEEP C has developed an internal microgrid combining wind power, rooftop solar systems, and battery energy storage. The system currently supplies electricity to more than 180 enterprises, with monthly consumption reaching around 65 million kWh,” Thu said.

Thu added that a notable feature of the model is its operation through an energy management system, which controls electricity flows without feeding excess power back into the national grid. This not only eases pressure on the central power system but also creates an energy buffer zone that helps manufacturers better manage electricity price volatility and supply disruption risks.