Vietnam revises the DPPA and rooftop solar framework 20 August 2026

Vietnam’s government has recently issued Decree No. 243/2026/ND-CP (“Decree 243”) and Circular No. 29/2026/TT-BCT (“Circular 29”) to amend the scope of the DPPA mechanism and self-consumption rooftop solar systems in Vietnam. These changes expand the scope of the DPPA mechanism and demonstrate the importance of DPPA in Vietnam’s energy mix and further accelerate the development of the rooftop solar systems.

This article sets out further details of the changes.

1. DPPA MECHANISM

a. Large Consumers

While Decree 243 maintains the definition of Large Consumers, Circular 29 significantly expands the pool of eligible consumers under the DPPA through private connection lines (“Physical DPPA”) scheme. The threshold for average monthly electricity consumption has been reduced tenfold, from at least 200,000 kWh to 20,000 kWh per month, opening the mechanism to a much wider pool of commercial and industrial consumers. For DPPA through the national grid (“Virtual DPPA”), the threshold remains 200,000 kWh per month.

b. Expanded participation for Power Retailers

Power retailers operating within industrial parks, economic zones, export processing zones, industrial clusters, high-tech zones, centralized digital technology zones, high-tech agricultural zones, urban areas and free trade zones (“Power Retailers”) are now permitted to participate in both DPPA mechanisms:

• Physical DPPA: fully accessible to Power Retailers; and
• Virtual DPPA: accessible to Power Retailers, excluding those operating in urban areas and free trade zones.

This amendment enables licensed power retailers to supply electricity under the DPPA framework directly within specialized zones where end-users historically contracted through local retail operators rather than generators.

c. Physical DPPA

Pricing regime and excess electricity off-take:

Removal of Price Ceiling: Decree 243 abolishes the regulatory tariff cap for Physical DPPAs. This allows electricity prices to be determined by commercial agreement rather than regulatory limits.

Expansion of private DPPA mechanisms:

Decree 243 expands the permitted contracting models for Physical DPPAs beyond the traditional bilateral arrangement between Renewable Energy Generation Companies (“RE GENCOs”) and Large Consumers. The framework now permits:

• Physical DPPAs between an RE GENCO and a Power Retailer; and
• Physical DPPAs between a Power Retailer and Large Consumers (where the Power Retailer invests in renewable generation to supply consumers within its authorised area).

These additional models provide Power Retailers with additional flexibility when structuring electricity supply arrangements.

Difference clearing charge:

Decree 243 replaces the requirement to disclose total DPPA system service charges (“CDPPA”) and total difference clearing charges (“CCL”) with a requirement to disclose the corresponding charges on a per-unit-of-electricity basis (CDPPAdv and PCL) for the preceding five years. This change is intended to provide market participants with more practical reference data for estimating DPPA-related costs per kWh of electricity transacted.

Furthermore, the revised Annex IV caps annual increases in the difference clearing charge by stipulating that PCLmax(N) may not exceed 105% of the charge applicable in the immediately preceding year. This amendment enhances cost predictability for DPPA participants and facilitates financial modelling, budgeting, and commercial negotiations.

Sale of excess electricity from rooftop solar

Sale to EVN: the off-take cap increases from 20% to up to 50% of actual generated output. The purchase tariff remains capped at the previous year’s average market price published by NSMO, subject to the regional tariff ceiling for ground-mounted solar.

Sale to Power Retailers: tariff caps have been removed, enabling sellers and Power Retailers to negotiate both volume and pricing freely.

Decree 243 exempts RE GENCOs supplying electricity to Large Consumers via private connection lines from rooftop solar development registration requirements. While this reduces administrative requirements for certain rooftop solar projects, participating Power Retailers must comply with new regulatory obligations introduced under Decree 243.

d. Virtual DPPA

Decree 243 expands the eligibility criteria for Virtual DPPAs via the national grid. The eligible pool now includes:

• Large Consumers connected at voltage levels of 22 kV or above, expressly extending beyond manufacturing to include (i) data centre operators; and (ii) commercial EV charging service providers (including charging stations, points, and battery swapping facilities).
• Power Retailers (excluding those in urban areas and free trade zones).

Decree 243 also adjusts procedure for participation in virtual DPPAs:

• Step 1: a representative entity authorised by RE GENCO and Large Consumer/Power Retailer submits the required application dossier to NSMO (including the documents set out in Decree 243 –e. the DPPA application, copies of the CfD and relevant PPAs, the application for competitive wholesale electricity market participation, among others).
• Step 2: NSMO is responsible for reviewing the application dossier, rather than allocating it to EVN, PC. If complete and valid, NSMO reports to MOIT and issues a written notice to EVN, PC, the RE GENCO, the Large Consumer, and the Power Retailer regarding the official time for DPPA participation.