EnergyOMNI's Perspectives｜Samsung Executes Vietnam's First Grid DPPA

Edited by EnergyOMNI

South Korea's Samsung Electronics, through its subsidiary Samsung Electronics Vietnam Thai Nguyen (SEVT), announced on June 1 that it had signed Vietnam's first Direct Power Purchase Agreement (DPPA) conducted through the national grid.

SEVT revealed that it would purchase electricity from the TTC Duc Hue 2 solar power plant, procuring 70 GWh of renewable electricity annually. This amount is equivalent to the annual electricity consumption of approximately 17,000 Vietnamese households and is expected to reduce carbon dioxide emissions by around 46,000 tonnes per year. Two other Samsung subsidiaries in Vietnam — Samsung Electronics Vietnam (SEV) and Samsung Electronics HCMC CE Complex (SEHC) — currently obtain renewable energy through rooftop solar installations. Both subsidiaries are also considering procuring green electricity through DPPAs to further increase their renewable energy supply.

Vietnam's Ministry of Industry and Trade (MOIT) began developing a framework for direct renewable electricity trading in 2019 in response to strong demand from businesses. After years of consultation and discussion, the government finally issued Decree No. 80/2024/ND-CP on July 3, 2024. The decree introduced two mechanisms that allow electricity consumers to purchase renewable power directly from generators, either through private transmission systems or via the national grid, thereby enabling market-based green power transactions.

Under the first mechanism, renewable electricity is supplied directly through private transmission infrastructure. Power purchase agreements are negotiated and signed voluntarily between generators and consumers, provided they comply with the Electricity Law. Under the second mechanism, renewable electricity is wheeled through the national grid operated by Vietnam Electricity (EVN). In this model, renewable energy generators sign contracts with EVN based on wholesale or spot market prices, while electricity consumers must also enter into agreements with EVN. Decree 80 stipulated that participating consumers must use at least 200,000 kWh of electricity per month and be connected at a voltage level of 22 kV or higher. According to EVN, approximately 7,700 customers in Vietnam consume more than 200,000 kWh per month, accounting for around 36.5% of national electricity consumption.

Because Decree 80 imposed relatively restrictive administrative requirements on DPPA participation, the government later issued Decree No. 57/2025/ND-CP on March 3, 2025, replacing Decree 80 as the primary legal framework governing DPPA implementation. For example, Decree 57 removed the eligibility requirements that consumers must use at least 200,000 kWh per month and be connected at 22 kV or above, thereby allowing a much broader range of small and medium-sized electricity users to participate. In addition, while DPPA pricing under the previous framework was subject to various regulatory constraints, the new decree allows parties to negotiate electricity prices freely, provided they do not exceed the government's ceiling price applicable to the relevant renewable energy technology. Furthermore, rooftop solar systems, which were previously restricted to self-consumption, are now permitted to sell electricity to large consumers.

The development of Vietnam's DPPA framework benefited from support from international organizations and advocacy groups, including the U.S. Agency for International Development (USAID), the Clean Energy Investment Accelerator , and the Asia Clean Energy Coalition. The private sector also played a significant role in advancing the policy. According to industry estimates, 159 multinational corporations operating in Vietnam have committed to sourcing 100% renewable electricity.

Technology companies such as Samsung Electronics began lobbying the Vietnamese government as early as 2019, actively participating in policy discussions and providing technical advice. Apple, whose supply chain includes numerous factories in Vietnam, also engaged with government authorities starting in 2019 to explore opportunities for corporate renewable electricity procurement in support of its green supply chain goals. In the same year, Heineken and 26 other multinational corporations issued a joint statement supporting the government's efforts to implement a DPPA framework. In 2020, 29 companies, including Nike and H&M from the textile and apparel sector, released another joint statement urging the government to accelerate DPPA implementation. The LEGO Group likewise advocated for the full implementation of the mechanism.

Following the introduction of Decree 57 in 2025, companies such as LEGO and H&M began negotiating DPPAs in Vietnam. In 2026, the country finally witnessed the signing of its first DPPA transaction conducted through the national grid, completed by Samsung Electronics Vietnam Thai Nguyen (SEVT). According to Lam Pham, Asia Energy Analyst at the UK-based energy think tank Ember, the implementation of DPPAs is expected to attract substantial private-sector investment and serve as a catalyst for accelerating solar power deployment in Vietnam.