The Direct Power Purchase Agreement (DPPA) mechanism allows renewable generators to sell electricity directly to large power consumers without going through traditional intermediary trading. Its legal framework has just been significantly updated by Decree 243/2026/ND-CP (effective 26 June 2026), amending Decree 57/2025/ND-CP (issued 3 March 2025, replacing Decree 80/2024/ND-CP) and Decree 58/2025/ND-CP. This article follows the structure: 2024 Law on Electricity → Decree 57/2025 → Decree 243/2026 → practical notes for businesses.
Numbering warning: Decree 243/2026 (on DPPA/energy) is entirely different from Decree 243/2025 (on PPP) — always verify the year in the instrument number when researching or citing, to avoid confusing the two.
1. Foundation: the 2024 Law on Electricity
The 2024 Law on Electricity (61/2024/QH15) is the parent law creating the corridor for a competitive power market, including direct power purchase between renewable generators and large electricity consumers. The decrees below implement this mechanism in detail.
2. Decree 57/2025: establishing the DPPA mechanism
Decree 57/2025/ND-CP (issued 3 March 2025) established the direct power purchase mechanism, replacing Decree 80/2024/ND-CP. It sets out the DPPA models (via the national grid and via private lines), eligibility conditions for generators and buyers, and the pricing and contracting mechanics.
3. Decree 243/2026: key new points (effective 26 June 2026)
Decree 243/2026/ND-CP amends Decrees 57/2025 and 58/2025, with new points businesses should note:
- Expanded participants: retail electricity units in industrial zones/clusters may join the DPPA mechanism; data centers and charging stations are recognized as large customers;
- Eligibility thresholds: for trading via the national grid — generators with capacity of 10MW or more, customers consuming 200,000 kWh/month or more; for trading via a private grid — customers consuming more than 20,000 kWh/month;
- Private-grid pricing: negotiated by the parties, not capped by any price frame — giving the parties wider negotiating room;
- Rooftop solar: the maximum surplus electricity sale ratio is raised from 20% to 50% — a significant improvement for rooftop solar investors.
4. Ho Chi Minh City pilot: Resolution 47/2026
Resolution 47/2026 of Ho Chi Minh City on DPPA implementation is a local pilot — not a nationwide policy. Enterprises outside Ho Chi Minh City should not assume its contents apply to them; those in the city must read the pilot scope and conditions carefully.
5. Practical notes for businesses
- Check thresholds before negotiating: compare your capacity/consumption against the 10MW, 200,000 kWh/month (national grid) or 20,000 kWh/month (private grid) thresholds — falling short means ineligibility;
- Data centers and charging stations: as newly recognized large customers, digital infrastructure investors should early assess direct purchase from renewable sources to optimize energy costs and emission targets;
- Private-grid price negotiation: with no price-frame cap, the price clause in a private-grid DPPA depends entirely on negotiating strength — scrutinize the pricing formula and adjustment mechanics;
- Rooftop solar: update financial models with the 50% maximum surplus sale ratio;
- Distinguish the instruments: always check the year number when citing — 243/2026 (DPPA) vs. 243/2025 (PPP).
Frequently asked questions
Can small businesses join the DPPA mechanism?
The mechanism sets minimum thresholds (e.g., 200,000 kWh/month via the national grid, over 20,000 kWh/month via a private grid). Businesses below the thresholds do not yet qualify under current rules.
Is private-grid DPPA pricing capped?
No. Under Decree 243/2026, the price is negotiated by the parties with no price-frame cap.
Does HCMC Resolution 47/2026 apply nationwide?
No. It is a pilot instrument limited to Ho Chi Minh City.
Key legal bases: 2024 Law on Electricity (61/2024/QH15); Decree 57/2025/ND-CP (3 Mar 2025, replacing Decree 80/2024); Decree 243/2026/ND-CP (effective 26 Jun 2026, amending Decrees 57/2025 and 58/2025); HCMC Resolution 47/2026 (local pilot). Validity checked as of 14 October 2026. Circular 29/2026/TT-BCT and the Appendix I formula are being cross-checked against the full text.
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For reference only, not legal advice.
The legal content of this article is reviewed by the FLAW AI Legal Council and submitted to the owner for approval; it is not an opinion of a licensed lawyer and does not replace legal advice for specific cases.
Are you a renewable generator or a large electricity consumer assessing DPPA eligibility and power purchase terms? Reach us via the Contact page of FLAT Law Firm.
