The DPPA framework enables direct electricity trading between renewable energy generators and large electricity consumers. The mechanism was established under Government Decree No. 57/2025/ND-CP dated March 3, 2025, building on Vietnam’s roadmap for the development of competitive electricity markets as outlined in Prime Ministerial Decision No. 63/2013/QD-TTg dated November 8, 2013. The scheme expands access to green electricity for major power users, promotes transparent electricity transactions, and lays the groundwork for the gradual development of a competitive retail electricity market.

The solar power plant of TTC Duc Hue - Long An

According to the National System and Market Operation Company Limited (NSMO), following a comprehensive review and verification of application dossiers and compliance with market participation requirements under the DPPA framework, the company reported its findings to the Ministry of Industry and Trade and the Electricity Regulatory Authority of Vietnam. NSMO also notified Vietnam Electricity (EVN), the Electricity Power Trading Company (EPTC), and relevant stakeholders that TTC Duc Hue 2 Solar Power Plant, operated by TTC Duc Hue – Long An Power JSC, officially joined Vietnam’s Competitive Wholesale Electricity Market and began participating in the DPPA mechanism through the national grid from June 1, 2026.

The plant’s participation is governed by the operational regulations of the Competitive Wholesale Electricity Market under Circular No. 16/2025/TT-BCT and Circular No. 36/2025/TT-BCT issued by the Ministry of Industry and Trade.

This makes TTC Duc Hue 2 the first power generation facility in Vietnam to officially participate in the DPPA mechanism via the national grid and conduct transactions through the electricity market. At the same time, Samsung Electronics Vietnam Thai Nguyen Co., Ltd. (SEVT) has become the first corporate customer in the country to purchase renewable electricity under the DPPA framework.

The renewable electricity supplied to SEVT is generated by the Duc Hue 2 Solar Power Plant, which has a designed capacity of 49 MWp/41.4 MWac and is located in Tay Ninh Province. Under the DPPA contract, SEVT is expected to secure approximately 70 GWh of solar electricity annually—equivalent to the yearly power consumption of around 17,000 households. The project is also expected to help reduce carbon dioxide emissions by roughly 46,000 tonnes per year.

From a power system and electricity market operation perspective, the milestone represents more than just Vietnam’s first DPPA commercial transaction. It is also the first practical operation of a new market mechanism. Electricity generated from renewable energy sources is fed into the national power system, while output volumes are measured, verified, dispatched, traded, and settled through the electricity market in accordance with existing regulations.

In terms of operational conditions, TTC Duc Hue 2 Solar Power Plant is located in southern Vietnam, a region with favorable solar irradiation levels and approximately 2,200–2,500 sunshine hours annually. These conditions provide a strong foundation for efficient solar power generation and participation in both the electricity market and the DPPA mechanism.

The first transaction under the DPPA framework through the national grid is expected to support greater integration of renewable energy sources, enhance transparency in electricity trading, facilitate access to green electricity for large consumers, and contribute to Vietnam’s broader sustainable energy transition goals.

As the operator of the national power system and electricity market, NSMO said it will continue working closely with power generators, electricity traders, major consumers, and other stakeholders to ensure that the DPPA mechanism is implemented safely, transparently, efficiently, and in full compliance with applicable regulations.