Vietnam’s Ministry of Industry and Trade plans to include biomass power in the direct power purchase agreement (DPPA) mechanism, as outlined in a draft decree set to replace Decree 80/2024 on the DPPA framework.
Currently, the DPPA mechanism covers solar and wind power projects of at least 10 MW. According to the ministry, incorporating biomass power could offer significant socioeconomic and environmental benefits. Biomass power would not only diversify the DPPA but also tap into Vietnam’s substantial biomass potential, driven by the large volumes of organic waste in the country.
At present, Vietnam has nine biomass plants, each with a capacity of over 10 MW, totaling 332 MW. The ministry projects that this number could grow to 14 plants, generating 300 MW by 2030. Additional benefits of biomass power include its reliability, ease of integration into the grid, reduced pollution, and the support it provides to local businesses in rural areas that supply feedstock.
The ministry intends to implement the new decree starting February 1.
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