Vietnam: Proposed Amendments to Direct Power Purchase Agreement (DPPA) and Self-Consumption Mechanisms under Decree No. 57/2025/ND-CP and Decree No. 58/2025/ND-CP

The key amendments to DPPAs proposed under the Draft Decree include the following:

• In relation to physical DPPAs via private connection wires:
  • Power retailers in industrial parks, economic zones, and some other regulatory clusters ("IP Power Retailers") are proposed to be eligible participants in physical DPPAs, allowing them to off-take power from renewable energy generation companies ("RE GENCOs") located in designated parks, zones or other clusters, and permitting RE GENCOs to sell primary or surplus power to IP Power Retailers.
  • The regulatory cap set out in Decree No. 57 that the electricity selling price is not permitted to exceed the maximum price specified for the relevant generation source is proposed to be removed, allowing parties to freely agree on the electricity price.
  • The regulatory cap set out in Decree No. 57 that the surplus electricity's price of rooftop solar power sources sold by RE GENCOs located within industrial parks, economic zones, and some other clusters may not exceed the maximum price of the ground-mounted solar power generation price bracket is proposed to be removed, allowing parties to freely agree on the price of selling of the surplus electricity in this case.
  • RE GENCOs are proposed to sell excess power generated from rooftop solar power sources to EVN (and its power corporations) at up to 50% of the actual electricity produced from this rooftop solar power system, increasing from the limit of 20% as set out under Decree No. 57.
  • RE GENCOs investing and installing rooftop solar power sources that supply electricity directly to large power consumers are not required to complete development registration procedures (thủ tục đăng ký phát triển, in Vietnamese) for rooftop solar power development.
  • For RE GENCOs having operated a rooftop solar power system under a DPPA between 3 March 2025 and the effective date of the Decree (once the Draft Decree is officially issued), the power sale and purchase price continues to implement according to the signed PPAs, and the parties can amend the PPAs in accordance with the new Decree.
• In relation to synthetic DPPAs via national grid:
  • IP Power Retailers can participate in the synthetic DPPAs without the need of being authorized by large power consumers within relevant parks, zones or clusters as currently required under Decree No. 57.
  • Large power consumers procuring electricity for the operation of their data centers are proposed to be eligible participants in synthetic DPPAs via the national grid.
  • EVN is required to submit to the National Power System and Market Operator Company (NSMO) detailed data regarding the charges for utilising electricity system services per unit (CDPPA) and the charges for clearing differences per unit (PCL) covering both the previous 10 years and projections for the next 5 years. This update may enhance transparency in market by providing stakeholders with extended historical and projected pricing data to better support DPPA pricing decisions and risk allocation.

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Hoang Anh Vu, Trainee Solicitor, has contributed to this legal update.