Vietnam DPPA Update 2026: The Real Story Is Implementation, Not Just Regulation

Vietnam’s Direct Power Purchase Agreement, or DPPA, framework has now moved beyond the stage of regulatory announcement. The market already has a formal legal structure in place, and the more relevant question in 2026 is whether that structure can be implemented in a way that is commercially workable for corporates, developers, and investors. In that sense, the story is no longer only about policy design, but about market execution. Vietnam formalized its full DPPA regime under Decree 57/2025/ND-CP on 3 March 2025, before further refining the direction of reform through Resolution 253/2025/QH15 on 11 December 2025.

At its core, Vietnam’s DPPA framework allows renewable energy generators and eligible large electricity consumers to transact more directly outside the traditional single-buyer model. Under Decree 57, the framework covers two main models: an off-grid or private-line DPPA, where electricity is delivered through private infrastructure, and a grid-connected DPPA, where renewable generators and buyers participate through the national transmission and wholesale market structure. While this legal structure was an important milestone, market uptake has remained relatively limited, as participants continue to face uncertainty around pricing, cost visibility, and implementation details.

That is why the real story in 2026 is implementation. In March 2026, Vietnam’s Ministry of Industry and Trade confirmed that it was drafting a decree to implement Resolution 253, showing that the framework is still evolving as the government works to translate legal direction into practical market rules.

Key 2026 Updates and Highlights

• Pricing flexibility is becoming more commercially meaningful.

  One of the most important updates is that under Resolution 253, electricity prices under private-line DPPA can be negotiated between buyers and sellers, removing the earlier ceiling-price constraint. This is significant because the previous cap had raised concerns over the financial feasibility and bankability of renewable energy projects, while greater pricing autonomy can better align contracts with actual market demand and project economics.

• The participant base is expanding beyond the earlier pilot structure.

  Decree 57 widened the eligible renewable technologies under the off-grid model beyond just solar and wind, while the grid-connected model also opened participation to additional renewable sources such as biomass, subject to a minimum installed capacity of 10 MW. This shows that Vietnam is gradually moving DPPA away from a narrow pilot design and toward a broader market mechanism.

• Industrial parks and zone-level participation are becoming more relevant.

  Resolution 253 expands DPPA participation to include electricity retailers operating in industrial parks, economic zones, export processing zones, industrial clusters, and high-tech zones. This is particularly important in Vietnam, where many manufacturers are concentrated in these zones and where future DPPA uptake may depend on how well the framework works in clustered industrial environments. The revisions also reflect direct feedback from market participants, many of whom have called for broader eligibility and more workable participation rules.

• Eligibility thresholds remain a key implementation issue.

  Under the current framework, large electricity consumers under the private-line model generally need to meet an average consumption threshold of at least 200,000 kWh per month, which still limits participation for many SMEs and businesses operating in industrial parks. While the latest draft revisions suggest a more tailored approach for certain retail electricity units in zones and clusters, participation thresholds remain an important factor in determining who can realistically access the DPPA market.

• Operational clarity remains the key challenge.

  While the overall direction of reform is clear, implementation details still matter, especially under the grid-connected DPPA model. Market participants continue to watch how grid service charges and difference compensation charges will be calculated and disclosed, as uncertainty around these costs affects long-term forecasting, contract design, and overall confidence in the mechanism. The latest draft would require EVN to calculate these charges using data from the most recent 10 years, which may improve visibility, but concerns remain around cost allocation and the possibility of overlapping grid-related charges under future tariff reforms.

Two-Component Tariff Reform Adds a New Cost Consideration

Vietnam’s pilot implementation of a two-component retail electricity tariff from October 2025 adds a separate layer of complexity to the DPPA discussion. Under the pilot, large manufacturing customers are assessed through a paper-based billing model that separates a capacity charge from an energy charge. In practice, this means electricity costs are no longer based only on how much power a customer consumes, but also on the customer’s maximum demand on the system.

For businesses exploring DPPA, this matters because future procurement decisions may increasingly depend not only on renewable electricity pricing, but also on how demand-related charges affect total power costs. In other words, even where companies are eligible to participate in the market, the economics of procurement may still vary depending on load profile and peak demand

Conclusion

Taken together, these developments show that Vietnam’s DPPA framework is entering a more practical stage. The legal basis is now stronger than it was under the earlier pilot approach, but the market will ultimately judge the framework by how usable it becomes in practice. For corporates, the question is whether DPPA can become a realistic renewable procurement channel. For developers and investors, the question is whether pricing, participation, and implementation rules are clear enough to support long-term projects and transactions.

For readers who would like to revisit the earlier developments behind Vietnam’s DPPA framework, we invite you to explore our previous article for additional background and context. Vietnam DPPA Framework Context.

As Vietnam’s DPPA framework continues to evolve, the next challenge for businesses lies in turning regulatory progress into practical procurement strategies. At Mt. Stonegate, we support organizations in navigating Vietnam’s changing energy landscape. For companies exploring DPPA participation or broader renewable energy strategies, our ESG and energy policy specialists provide expert guidance to support informed decision-making.