HCMC Seeks to Expand Direct Power Purchases to LNG Plants and Industrial Zones

Ho Chi Minh City's municipal People's Committee has proposed expanding its direct power purchase mechanism to include liquefied natural gas (LNG) thermal power plants and industrial zone customers. The move aims to increase renewable energy adoption in the city, particularly among businesses operating in industrial parks and high-tech zones.

The current DPPA mechanism is governed by Decree 57/2025/ND-CP and allows large electricity consumers to buy power directly from renewable energy sources through private connection grids. However, this limits the number of eligible businesses and impacts export capacity, investment attraction, and renewable energy development in the city.

The proposed expansion would add LNG thermal power projects and electricity consumers in industrial zones to the list of eligible entities for direct power purchases via private connection grids. This targets consumers with small consumption volumes who do not need to conduct DPPA through the national grid.