“Dispute resolution between EVN and renewable energy investors” – Internal Discussion

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“Dispute resolution between EVN and renewable energy investors” is the topic of the latest Internal Discussion hosted by the Vietnam International Commercial Mediation Center (VICMC) and the Electricity of Vietnam (EVN) on November 19, 2021. 
The discussion was jointly organized by the Energy and Infrastructure Working Group of VICMC and the Legal Department of EVN to discuss legal issues surrounding power purchase agreements (PPAs).

Participating in the internal discussion, Lawyer Nguyen Hung Quang – President of VICMC gave a presentation on the possibility of using commercial mediation to resolve disagreements or disputes in PPAs. Accordingly, the ability of the parties to conduct mediation will be based on the terms and conditions of the PPA as well as Vietnam’s legal regulations on dispute settlement. Under current law, the parties to a PPA can use commercial dispute resolution methods and have a commercial mediator act as a mediator to assist in resolving disputes in accordance with Decree 22/2017. Along with the advantages of saving time, costs, friendly procedures, and confidentiality, commercial mediation can be a solution to help parties resolve disputes proactively, in good faith, and maintain a long-term relationship.

The discussion was moderated by Mr. Nguyen Minh Khoa – Head of the Legal Department of EVN and Counsel Nguyen Tuan Phat – Head of the VICMC Infrastructure and Energy Working Group. It has attracted many lively debates, from the interpretation of legal documents to the practical implementation of rooftop solar power and wind power projects. At the end of the discussion, the speakers said that the interpretation and application of legal regulations on PPA still have many issues that need to be studied and discussed in order to minimize legal risks and disputes for the parties. 

Internal discussion on Dispute resolution between EVN and renewable energy investors

From Resolution No. 55 on the Politburo’s National Strategic Orientation for Energy Development in 2020 to Vietnam’s strong commitments to cut greenhouse gas emissions and achieve net-zero emissions by the year 2050 in the COP26 Climate Summit in early November showed the explosive development potential of the renewable energy sector in the coming time. This process also poses many challenges for the parties to the PPA regarding the regulatory system and policy framework. The risk of disagreement or dispute is unavoidable, but the parties should still work together to resolve it in good faith and towards an equal solution, bringing sustainable results.

VICMC Secretariat

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