Vietnam’s DPPA Overhaul: A Clearer, Bolder Path for Corporate Renewable Buyers

Under Decree 57, there are two DPPA models. Model 1 is a private-line or physical DPPA. In this model, the generator sells electricity to the large consumer through a direct, private connection line, and the DPPA is signed between the two parties. The selling price is negotiated, but under Decree 57 it cannot be higher than the ceiling price set by the Ministry of Industry and Trade (MOIT) for the relevant technology. Model 2 is a grid-connected or virtual/financial DPPA. Here, the generator sells its entire output into the spot electricity market within the competitive wholesale electricity market, while the large consumer continues buying electricity from Power Corporations or Power Companies and separately contracts with the generator. This structure puts corporate buyers into a market-linked arrangement without needing a dedicated line.

What Changed, and Why Buyers Should Care

Decree 57 also arrived after an earlier DPPA attempt under Decree 80/2024/ND-CP, which Vietnam replaced after only eight months. Decree 80 required large users to maintain an average monthly consumption of exactly 200,000 kWh and connect at 22 kV or higher, and it limited eligibility to solar and wind projects of at least 10 MW. Vietnam Briefing notes Decree 57 introduced more flexible eligibility by linking participation to regulations under the Vietnam Wholesale Electricity Market (VWEM), allowing MOIT to adjust thresholds based on grid conditions. It also expanded eligible energy sources: biomass plants of at least 10 MW can participate in addition to solar and wind. For rooftop solar, surplus power can be sold to EVN at prices equivalent to the previous year’s average market. Decree 57 also reduced prescriptive contract templates, giving buyers and developers more commercial freedom to structure risk allocation and performance terms.

Implementation, however, remains the real test. Reccessary points to limited adoption amid pricing complexities and systemic implementation barriers, including eligibility constraints in the private-line model, where large consumers must meet a monthly consumption threshold of at least 200,000 kWh/month. At the same time, the market is moving toward bigger deal volumes and longer contracting horizons. Mordor Intelligence reports that DPPA rules effective March 2025 allow private generators to strike direct deals with large users, and that multinationals can lock in renewable electricity at fixed prices over 15–20 years. The same source states procurement pipelines could reach 4 GW by 2028. Vietnam’s investment backdrop is also large: PDP-8 includes a USD 136 billion policy push, targeting 28–36% renewable energy by 2030 and 74–75% by 2050. These targets set the direction, but buyers still need bankable contracts that fit grid realities and spot-market exposure.

In late 2025 and into 2026, the pricing story evolved again. Vietnam formalized the DPPA regime under Decree 57 on 3 March 2025, then refined the direction through Resolution 253/2025/QH15 on 11 December 2025, according to MTS Stonegate. A key update is that under Resolution 253, electricity prices under private-line DPPAs can be negotiated between buyers and sellers, removing the earlier ceiling-price constraint. In March 2026, MOIT confirmed it was drafting a decree to implement Resolution 253, signaling ongoing adjustments as rules translate into practice. For corporate buyers, that means the new playbook is not just choosing between private-line versus grid-connected models. It is building procurement strategies that can accommodate evolving implementation guidance, wholesale market settlement, and technology eligibility, including biomass (with the 10 MW minimum) alongside wind and solar.