The first direct electricity trading projects in Vietnam
Xuan Cau Holdings' commencement of the Dau Tieng 5 Solar Power Plant Project on August 4 is considered an important milestone in the process of realizing the direct electricity purchase and sale mechanism (DPPA), gradually putting policies into practice.
The project has a total investment of about 7,774 billion VND, expected to be put into commercial operation in December 2027. When put into operation, the plant is expected to supply about 808GWh of clean electricity per year, contributing to supplementing the power source for the national power system.
In early June 2026, Samsung Thai Nguyen and TTC Duc Hue 2 Solar Power Plant also officially operated direct electricity purchase and sale transactions through the national grid, expected to supply about 70GWh of renewable electricity each year, equivalent to the electricity output supplied to about 17,000 households.
Reality shows that after more than a year of the Government's Decree 57/2025 on direct electricity purchase and sale mechanism taking effect, many businesses have actively implemented and gradually put policies into practice. This is a positive signal, creating a premise for the development of a competitive wholesale electricity market, towards forming a competitive retail electricity market.
DPPA mechanism can work in practice
Dr. Nguyen Huy Hoach - Scientific Council of Vietnam Energy Magazine - said that DPPA is a mechanism that allows large-capacity electricity customers to purchase electricity directly from renewable energy generation units.
In the context of international trade shifting strongly to the green development model, the significance of DPPA has gone beyond the scope of an energy policy. DPPA is gradually becoming an important component of national competitiveness.
For many years, the advantages of Vietnamese businesses have mainly relied on labor costs, geographical location and the network of free trade agreements. However, the trend of shifting the global supply chain is changing the criteria for choosing investment locations. More and more multinational corporations are considering access to renewable energy sources as an important condition to maintain production and meet commitments to sustainable development.
The first implemented projects have proven that the DPPA framework can completely operate in real conditions.
However, if viewed on the entire market scale, the number of projects and electricity output traded under the DPPA mechanism is still modest compared to the needs of businesses as well as the renewable energy development goals set out by the adjusted Power Plan VIII.
The biggest bottleneck of DPPA no longer lies in the lack of mechanisms, but is shifting to the ability to organize implementation.
In fact, most of the problems that businesses reflect today are still concentrated in project implementation procedures and coordination between relevant agencies. Some regulations, although promulgated, the understanding and application between localities, or between implementing units, are still not really consistent. This increases transaction costs and prolongs project preparation time.
For global manufacturing corporations, this is not only an administrative procedure issue, but also directly affects the progress of implementing RE100 commitments, emission reduction targets and investment expansion plans.
Therefore, after the stage of completing the legal framework, the focus of reform needs to be shifted to improving the quality of implementation. This requires synchronous coordination between the Ministry of Industry and Trade, EVN, localities and related units to standardize guidance processes, shorten investment procedures, simplify connection, measuring and electricity payment processes; and at the same time strengthen the application of digital transformation in the management and operation of the power system.
In parallel with that, it is necessary to continue to develop components of flexible power systems such as energy storage systems, load adjustment, virtual power plants, load consolidation units, supporting service markets and competitive retail electricity markets. These are necessary conditions to improve the absorption capacity of renewable energy sources, while expanding the scale of DPPA implementation in the coming years.
DPPA is not only a mechanism for electricity transactions but also a test for Vietnam's institutional reform capacity in the energy transition process. What investors are currently interested in is not only whether Vietnam will issue a new mechanism or not, but more importantly, how quickly, transparently and stably that mechanism is implemented.
Only when the gap between policy and practice is narrowed will green electricity truly become a driving force for green growth and contribute to improving national competitiveness" - Dr. Nguyen Huy Hoach said.
