In brief
On 26 June 2026, the Government of Vietnam issued Decree No. 243/2026/ND-CP ("Decree No. 243"), introducing a number of amendments to the direct power purchase agreement (DPPA) mechanism between renewable energy generator ("RE GENCO") and large power consumer ("Large Consumer") under Decree No. 57/2025/ND-CP ("Decree No. 57").
These amendments implement recent policies issued by the National Assembly and reflect the Government's efforts to further promote DPPA transactions in the Vietnam's power market.
Key takeaways
The key updates under Decree No. 243 include the following:
- In relation to physical DPPA via private grid:
- Power retailer licensed to retail electricity in relevant zone and cluster models ("Power Retailer") is added as eligible participant, acting as a power purchaser or a power generator.
- Tariff caps applicable to the physical DPPA transaction and the sale of excess rooftop solar (RTS) output to Power Retailer have been removed, allowing parties to freely agree on the applicable power price.
- RTS power generator may sell its excess power output (other than the output sold under the physical DPPA transaction) to Power Corporation or Power Company (PC) at up to 50% of the actual output, increased from 20% previously governed under Decree No. 57.
- In relation to synthetic DPPA via national grid:
- Large Consumer purchasing electricity for data centre operation is now eligible participant for synthetic DPPA. Meanwhile, Large Consumer using synthetic DPPA for electric vehicle charging service businesses are clarified to include operators of charging stations, charging points, and battery swapping stations.
- Power Retailer may now act as an independent power purchaser, or an authorized representative of Large Consumer.
- Procedures for participation in synthetic DPPA have been significantly streamlined, reducing from seven steps under Decree No. 57 to only three steps under Decree No. 243 (including a complete one-time application submission and review).
The full DPPA mechanism governed under Decree No. 57, as amended and supplemented under Decree No. 243, is set out in detail below.
Explore More Insight