According to Decree 243/2026, which amends Decrees 57 and 58 on renewable energy development, the Government has expanded the scope of the direct power purchase agreement (DPPA) mechanism. In addition to large electricity consumers for manufacturing, the mechanism now also applies to data centers and businesses providing charging and battery swapping services for electric vehicles.

An electric vehicle charging station on Pham Van Bach street. *Photo: Luong Dung*

This marks the first time these two new groups are included in the DPPA mechanism. Their inclusion comes as electricity demand from data centers and electric vehicle charging infrastructure is projected to rise rapidly, driven by digital transformation and the electrification of transport. The decree also adds retail electricity units in zones and clusters (excluding urban areas and free trade zones) to the DPPA mechanism. Accordingly, retail electricity units in industrial zones, economic zones, export processing zones, industrial clusters, and high-tech agricultural clusters can purchase electricity directly from renewable energy generators and supply it to large electricity consumers within those zones or clusters. They can also invest in renewable energy sources to sell directly to large electricity consumers within their respective zones or clusters.

The DPPA mechanism was enacted by the Government in 2025, allowing large consumers to purchase electricity directly from renewable power plants instead of solely buying from EVN. Its goal is to enable businesses to access green energy, meet global supply chain emission reduction requirements, and promote market-driven renewable energy development.

Currently, Samsung Thai Nguyen (SEVT) and TTC Duc Hue two Solar Power Plant are the first entities to complete the technical and legal procedures to operate officially under the direct power purchase agreement (DPPA) mechanism. SEVT acts as the buyer, while TTC Duc Hue two is the electricity seller.

According to a survey conducted by the Ministry of Industry and Trade at the end of 2023, approximately 20 large businesses expressed interest in purchasing electricity directly, with a total demand of nearly 1,000 MW. Additionally, 24 renewable energy projects with a capacity of 1,773 MW aim to sell electricity through the DPPA mechanism, and 17 projects with a capacity of 2,836 MW are considering participation.

Phuong Dung