Construction of the Dau Tieng 5 Solar Power Plant, developed by DT5.1 Energy JSC, a subsidiary of Xuan Cau Holdings, officially began on August 4 in Tay Ninh Province. The project occupies approximately 645 hectares of semi-submerged land around Dau Tieng Reservoir.

The solar plant carries an investment of about VND7.774 trillion and is expected to begin commercial operations in December 2027. Once completed, it will generate around 808 GWh of clean electricity annually, helping strengthen Vietnam's national power supply.

Xuan Cau Holdings said the project is among the first in Vietnam to adopt the DPPA mechanism, marking an important milestone in putting the policy into practice.

According to the company, the model not only promotes sustainable development for renewable power producers and large electricity consumers but also supports the development of a competitive electricity market in line with the government's roadmap.

Signing DPPA contracts with large electricity users, including foreign-invested manufacturers, also demonstrates the company's competitiveness through its commitments to project delivery, quality, operational efficiency, and safe project execution.

Earlier, on June 1, Samsung Thai Nguyen and the TTC Duc Hue 2 Solar Power Plant officially conducted Vietnam's first DPPA transaction through the national power grid.

Under the agreement, Samsung's manufacturing complex is expected to receive approximately 70 GWh of renewable electricity annually, enough to supply roughly 17,000 households.

Over the past year, many businesses have begun implementing DPPA projects following the introduction of Decree 57, gradually translating the policy into practice.

The Ministry of Industry and Trade considers this a positive development that lays the groundwork for Vietnam's competitive wholesale electricity market and its longer-term transition toward a competitive retail electricity market.

For the DPPA model using dedicated private transmission lines, several dozen companies have reported active implementation since the decree took effect.

New regulation

The government has recently issued Decree 243, amending provisions of Decree 57 and Decree 58 on renewable energy development. One of the most significant changes is the expansion of entities eligible to participate in the DPPA mechanism.

In addition to large industrial electricity consumers, the new rules now extend DPPA eligibility to 1/Large electricity users operating data centers and 2/Large electricity users supplying electricity for electric vehicle charging stations, charging hubs, and battery-swapping facilities used for commercial charging services.

Notably, renewable energy developers that install rooftop solar systems to sell electricity directly to large consumers will no longer be required to complete procedures for registering new rooftop solar generation projects.

Decree 243 also adds electricity retailers operating within industrial parks and industrial clusters to the list of eligible DPPA participants.

These retailers may sign power purchase agreements directly with renewable energy producers and resell electricity to customers within their industrial parks or clusters. They may also invest in renewable generation projects and sell electricity directly to large consumers in those areas.

Another notable change is that electricity prices under DPPA contracts using dedicated transmission lines will now be negotiated freely between buyers and sellers, rather than being capped by the maximum price framework previously issued by MOIT.

Nguyen Huy Hoach, a member of the Scientific Council of the Vietnam Energy Magazine, said the significance of DPPA extends well beyond foreign-invested enterprises.

For domestic manufacturers, particularly those in electronics, engineering, textiles, footwear, food processing, and construction materials, the ability to use renewable electricity will increasingly influence their ability to retain orders and expand export markets.

As international buyers demand greater transparency regarding carbon emissions throughout supply chains, access to green electricity is becoming a new source of competitive advantage, he said.

DPPA can also enhance Vietnam's attractiveness as an investment destination. As regional economies compete to attract high-quality foreign investment, the ability to provide reliable clean electricity through flexible trading mechanisms is expected to become an important advantage in attracting projects in high technology, data centers, semiconductors, and electronics manufacturing.

"Decree 243 not only refines the direct power purchase mechanism but also helps transform energy policy into a tool for strengthening Vietnam's national competitiveness. However, this advantage can only be fully realized if the regulations are implemented consistently, transparently, and with low transaction costs," Hoach said.

According to Hoach, those factors will determine whether DPPA can truly become a catalyst for Vietnam's energy transition while enhancing the competitiveness of domestic businesses in the years ahead.

Tam An