Vietnam’s Ministry of Industry and Trade plans to add biomass power to the direct power purchase agreement (DPPA) mechanism, according to its draft decree to replace Decree 80/2024 on DPPA mechanism.
The current DPPA mechanism features solar and wind power of at least 10 MW.
The ministry stated that biomass power can lead to socioeconomic and environmental improvements.
It can diversify the DPPA, and Vietnam has enormous biomass potential due to the huge amounts of organic waste.
The country currently has nine biomass plants with over 10 MW each, totalling 332 MW. The ministry said this figure could reach 14 plants of 300 MW by 2030.
Further advantages include stability and the ease of connection for biomass power, a reduction in pollution and local business support in rural areas for feedstock provision.
The ministry aims to put the new decree into force from 1 February.
Vietnam plans to add biomass to direct power purchase agreement
