Against the backdrop of growing demand for renewable electricity, the Direct Power Purchase Agreement mechanism between renewable energy generators and large electricity consumers (“DPPA Mechanism”), together with the mechanism for developing self-produced and self-consumed rooftop solar power, is attracting increasing attention from businesses as a solution to proactively secure electricity supply, meet environmental objectives, and optimize energy costs. However, the practical implementation of these mechanisms depends on various factors, including the scope of eligible participants, electricity pricing methods, limits on surplus electricity sales, technical connection requirements, and relevant registration procedures with competent authorities.

On 26/06/2026, the Government issued Decree No. 243/2026/ND-CP (“Decree 243”), amending and supplementing certain provisions of Decree No. 57/2025/ND-CP dated 03/03/2025 of the Government regulating the DPPA Mechanism (“Decree 57”) and Decree No. 58/2025/ND-CP dated 03/03/2025 of the Government detailing certain articles of the Electricity Law regarding the development of renewable energy and new energy (“Decree 58”). Decree 243 introduces several notable changes to the DPPA mechanism and the development of self-produced and self-consumed rooftop solar power.

Against this background, this article updates and analyzes several notable changes under Decree 243 that directly affect enterprises participating in the DPPA Mechanism and rooftop solar power investors under Decree 243. The article also provides observations on the impact of the new regulations on investment in, purchase and sale of, and use of renewable electricity, as well as certain legal issues that enterprises should consider in practice.

1. Expansion of the scope of participation in the DPPA Mechanism to power retailers in zones and clusters

Previously, under Decree 57, for both forms of the DPPA Mechanism, the law generally only allowed large electricity consumers to act as electricity buyers[1]. Power retailers in zones and clusters were not permitted to participate as independent participants and could only participate in the DPPA Mechanism through the national power grid on the basis of authorization by large electricity consumers to purchase electricity and enter into electricity term contracts with renewable energy generators[2].

Decree 243 introduces a notable change by recognizing power retailers in zones and clusters as participants in the DPPA Mechanism. Accordingly, a power retailer may:

(i) For the DPPA Mechanism via a separate connected power grid: a power retailer may directly purchase electricity from a renewable energy generator or invest in a renewable energy power source itself to directly sell electricity to large electricity consumers within the relevant zone or cluster[3];

(ii) For the DPPA Mechanism through the national power grid: a power retailer in a zone or cluster, except in an urban area or free trade zone, may directly enter into an electricity term contract with a renewable energy generator and a power purchase agreement with a Power Corporation or Power Company[4].

This change is particularly significant for enterprises using electricity in industrial parks, export processing zones, and other zones or clusters with internal power grids. In practice, these enterprises often do not purchase electricity directly from a Power Corporation or Power Company, but instead purchase electricity through a power retailer that manages the internal distribution system. Under Decree 57, however, a power retailer could only participate in the DPPA Mechanism through the national power grid on the basis of authorization by a large electricity consumer. By making power retailers in zones and clusters direct participants in the DPPA Mechanism, Decree 243 simplifies the transaction structure and better reflects the actual electricity supply model in such zones and clusters.

Accordingly, a power retailer in a zone or cluster may act as the purchaser of electricity from a renewable energy source, resell that electricity to large electricity consumers, and perform obligations relating to metering, operation, payment, and reporting. Enterprises participating in such transactions should review the power purchase agreements, internal grid use arrangements, metering arrangements, electricity output allocation principles, and the responsibilities of each party across the transaction chain to ensure that the relevant arrangements and agreements properly reflect the role of each participant.

2. Expansion of categories of large electricity consumers eligible to participate in the DPPA Mechanism through the national power grid

For the DPPA Mechanism through the national power grid, Decree 57 required a large electricity consumer to purchase electricity from a Power Corporation, Power Company, or power retailer, be connected at a voltage level of 22 kV or higher, and fall within one of the following categories[5]:

(i) Electricity consumers using electricity for production purposes; or

(ii) Electricity consumers using electricity for the business of charging electric vehicles.

Decree 243 adds large electricity consumers using electricity for data center operations to the categories eligible to participate in the DPPA Mechanism through the national power grid. At the same time, for customers engaged in electric vehicle charging services already recognized under Decree 57, Decree 243 specifies the relevant forms of electricity use, including charging stations, charging posts, and EV battery swapping cabinets.[6]

The inclusion of electricity consumers serving data center operations and the clarification of infrastructure used for electric vehicle charging services indicate that the scope of the DPPA Mechanism is being adjusted to better reflect the development of large electricity consumers outside traditional manufacturing, particularly digital infrastructure and infrastructure serving electric vehicles. For enterprises operating in these sectors, the expanded and clarified scope provides a basis to consider participation in the DPPA Mechanism through the national power grid and proactively assess suitable electricity supply options.

3. Simplification of procedures for participating in the DPPA Mechanism through the national power grid

Decree 243 amends and restructures the procedures for participating in the DPPA Mechanism through the national power grid by centralizing dossier submission through a representative entity. The new procedure may be summarized as follows[7]:

(i) The renewable energy generator and the large electricity consumer or power retailer in a zone or cluster negotiate and execute the set of direct power purchase agreements as prescribed. The effective date of the agreements is agreed by the parties, but the DPPA Mechanism applies only from the time the Power System and Market Operator notifies the parties that they have officially joined the mechanism;

(ii) The parties agree to and authorize a representative entity to submit the registration dossier for participation in the DPPA Mechanism to the Power System and Market Operator. The dossier includes the executed agreements, the dossier for registration to participate in the competitive wholesale electricity market, technical documents, and a written agreement on the proportion of electricity output allocated to each large electricity consumer or power retailer; and

(iii) Within 05 working days from receipt of the dossier, the Power System and Market Operator reviews the completeness and validity of the dossier, verifies the electricity output allocation ratios, reports to the Ministry of Industry and Trade, and notifies the parties of the date on which they officially participate in the DPPA Mechanism.

Centralizing dossier submission through a representative entity helps establish a single focal point for implementing the procedure. However, the parties should agree early on the representative entity and the electricity output allocation ratios, as these matters must be finalized in the registration dossier and directly affect implementation of the DPPA Mechanism.

4. Greater flexibility in negotiating electricity prices under power purchase agreements in the DPPA Mechanism via a separate connected power grid

Previously, Decree 57 provided that the electricity price under a direct power purchase agreement via a separate connected power grid “shall be negotiated and agreed by the parties and shall not exceed the maximum price under the electricity generation price framework applicable to the corresponding type of power source”[8]. The electricity generation price framework ranges between a minimum price (VND 0/kWh) and a maximum price[9], and is approved by the Minister of Industry and Trade for each type of power plant, serving as a basis for determining or limiting electricity prices where prescribed by law[10].

Decree 243 amends this provision to read: “The electricity price under the power purchase agreement shall be negotiated and agreed by the electricity seller and the electricity buyer”[11]. Accordingly, the electricity price under a direct power purchase agreement via a separate connected power grid is no longer capped by the maximum price under the electricity generation price framework and will instead be determined by agreement of the parties.

This change allows the electricity seller and electricity buyer to negotiate a price that reflects the characteristics of each transaction, such as the contract term, committed electricity output, investment and operating costs of the separate connected power grid, characteristics of the power source, and the allocation of risks between the parties. This gives the parties greater flexibility to develop pricing and financial arrangements suited to the project and to assess the project’s capital recovery prospects.

However, the removal of the above price cap does not apply where a renewable energy generator sells surplus electricity to a Power Corporation or Power Company. For such surplus electricity, the purchase price remains subject to the maximum price under the applicable electricity generation price framework. Therefore, when preparing its financial plan, the generator should separately determine the expected price and revenue from surplus electricity sold to a Power Corporation or Power Company.

5. Expansion of the limit on surplus electricity sales from rooftop solar power systems

Decree 243 increases the limit on the sale of surplus electricity from rooftop solar power systems from 20% to 50% under both the DPPA Mechanism via a separate connected power grid and the self-produced and self-consumed rooftop solar power mechanism. Specifically:

(i) For the DPPA Mechanism via a separate connected power grid: Previously, Decree 57 provided that surplus electricity from a rooftop solar power system of a generator sold to Vietnam Electricity, a Power Corporation, or a Power Company could not exceed 20% of actual electricity output[12]. Decree 243 increases this limit to no more than 50% of actual electricity output[13].

(ii) For self-produced and self-consumed rooftop solar power systems: Previously, Decree 58 limited the surplus electricity that could be purchased and sold to no more than 20% of the electricity generated at the inverter output under available solar irradiance[14]. Decree 243 increases this ratio to 50%. In addition, from the effective date of Decree 243 through 31/12/2030, the electricity seller and electricity buyer may agree on a ratio higher than 50% if the grid at the interconnection point has adequate hosting capacity and the trading of surplus electricity satisfies secure grid operation requirements[15].

Increasing the surplus electricity sales limit from 20% to 50% creates additional room to utilize and commercialize electricity output that is not consumed at the rooftop solar power system. For projects with significant surplus electricity, this change may improve project financial efficiency by allowing a greater proportion of electricity output to be sold. In particular, for self-produced and self-consumed rooftop solar power, the ability to agree on a surplus electricity sales ratio above 50% through 31/12/2030, subject to grid hosting capacity and safe operation requirements, gives the parties additional flexibility to structure investment and power source utilization plans based on load characteristics and the hosting capacity of the power system.

6. Introduction of the concept of a reverse power export on/off device (Zero-Export)

Previously, Decree 58 did not provide a separate definition of a Zero-Export device, although the ability to allow or prevent a power source from exporting active power to the grid is important for rooftop solar power systems connected to the national power grid.

Decree 243 introduces the following definition: “A reverse power export on/off device (English name: Zero-Export) is a device with a control function designed to allow (reverse-export prevention OFF mode) or prevent (reverse-export prevention ON mode) the export of active power to the grid through an on/off mechanism. This device may be integrated into an inverter, integrated into a monitoring and control device, or be a standalone device”[16].

Codifying this concept helps standardize the understanding among investors, power utilities, design contractors, and regulatory authorities during appraisal, connection, and system operation. Relevant parties should use the correct term “reverse power export on/off device” in legal documentation, rather than referring to it only as a “load-following device”, a term commonly used in technical documents.

7. Transition of power source development notification and registration procedures to electronic methods

Previously, Decree 58 required organizations and individuals subject to power source development notification to submit the prescribed Notice to the Department of Industry and Trade, the power utility, and other relevant local authorities[17]. For power source development registration, dossiers could be submitted in person, by post, or online through the receiving authority’s portal[18].

Decree 243 shifts these procedures to electronic submission. Organizations and individuals submit the Power Source Development Notice online via the National Public Service Portal or the National Identification Application. Those attending the receiving authority’s One-Stop Service Division are guided and assisted to submit the Notice online through either platform[19].

Similarly, applications for a Development Registration Certificate are submitted online via the National Public Service Portal or the National Identification Application. At the One-Stop Service Division, receiving officers must guide and assist online submission; electronically submitted documents must be electronic copies of the originals[20].

This shift is consistent with administrative procedure reform and digital transformation in state authorities, helping standardize dossier receipt and processing and improve procedural transparency.

[1] Article 2.1 of Decree 57.

[2] Article 2.2(c) of Decree 57.

[3] Article 1.2(a) and Article 1.4 of Decree 243, amending and supplementing Article 2.1 and Article 4.1 of Decree 57.

[4] Article 1.2(b) and Article 1.4 of Decree 243, amending and supplementing Article 2.2(c) and Article 4.2 of Decree 57.

[5] Article 2.2(b) of Decree 57.

[6] Article 1.2(b) of Decree 243, amending and supplementing Article 2.2(b) of Decree 57.

[7] Article 1.22 of Decree 243, amending and supplementing Article 26 of Decree 57.

[8] Article 6.1(b) of Decree 57.

[9] Articles 3.1 and 3.2 of Circular No. 09/2025/TT-BCT dated 01/02/2025 of the Ministry of Industry and Trade providing for dossiers, order and procedures, and methods for determination and approval of electricity generation price frameworks; and dossiers, order and procedures for formulation and approval of electricity import price frameworks (“Circular 09”).

[10] Article 10.2 and Articles 10.4 of Circular 09.

[11] Article 1.6(b) of Decree 243, amending and supplementing Article 6.1(b) of Decree 57.

[12] Article 6.3 of Decree 57.

[13] Article 1.6(d) of Decree 243, amending and supplementing Article 6.3 of Decree 57.

[14] Article 14.2 of Decree 58.

[15] Article 2.8 of Decree 243, amending and supplementing Article 14 of Decree 58.

[16] Article 2.1 of Decree 243, amending and supplementing Article 3 of Decree 58.

[17] Articles 15.2 and 15.3 of Decree 58.

[18] Article 17.3 of Decree 58.

[19] Article 2.9 of Decree 243, amending and supplementing Article 15 of Decree 58.

[20] Article 2.11 of Decree 243, amending and supplementing Article 17 of Decree 58.

Disclaimer: This article has been prepared by PTN Legal LLC (“PTN Legal”) for the sole purpose of providing reference information to readers. PTN Legal makes no representation or warranty as to the accuracy or completeness of this information. The contents of this article may be changed, amended, or updated without prior notice. PTN Legal assumes no responsibility for any errors or omissions in this article, or for any damage arising from the use of this article in any circumstances. Please visit PTN Legal’s website to view our previous articles here.

Readers who wish to receive articles from PTN Legal by email may register their information here.

This article was prepared by Thao Vu, Paralegal.