Direct Renewable Power Purchasing Moves from Policy to Practice in Vietnam

Vietnam's direct power purchase mechanism has moved from regulation into practical operation. The development gives large electricity users a new route to procure renewable power and creates a clearer connection between corporate decarbonization commitments and investment in generation, grid and factory infrastructure.

From Decree No. 80 to the first grid-based transaction

The Government issued Decree No. 80/2024/ND-CP in July 2024, allowing eligible large customers to purchase renewable electricity through a separate line or through the national grid. The mechanism was designed to meet demand for clean energy while supporting renewable investment and a more competitive electricity market.

In June 2026, the Government reported that TTC Duc Hue 2 Solar Power Plant and Samsung Electronics Vietnam Thai Nguyen became the first generator and corporate customer to participate in the grid-based mechanism. The arrangement is expected to supply about 70 GWh of solar electricity annually and reduce approximately 46,000 tonnes of CO2 emissions per year.

Why DPPA matters to industrial infrastructure

For manufacturers, renewable procurement is not only a contract question. A facility may also need upgraded metering, protection, monitoring, internal distribution and energy-management systems. Where on-site generation, battery storage or a separate connection is involved, engineering requirements become more complex.

This creates relevant applications for solar cable, medium- and low-voltage cable, control and communication cable, connectors, switchgear interfaces, testing equipment and condition-monitoring systems. Actual requirements depend on the chosen DPPA model and each site's electrical design.

A signal for greener supply chains

Export manufacturers increasingly face requests for renewable electricity and emissions information from customers and investors. A functioning DPPA mechanism can provide another tool for meeting these expectations, although availability, pricing, contract structures and project qualification remain important considerations.

The first transaction should therefore be read as an implementation milestone, not proof that every industrial user can immediately obtain the same arrangement. Continued regulatory guidance, grid investment and successful project delivery will shape the mechanism's wider impact.

Sources

Policy information is based on the Government of Vietnam's summary of Decree No. 80/2024/ND-CP. Implementation data is from the official report on the first renewable generator and corporate customer joining the DPPA mechanism.