Duc Hue 2 Solar Power Plant Officially Joins Vietnam’s Direct Power Purchase Agreement (DPPA) Mechanism

The DPPA mechanism enables direct electricity transactions between renewable energy generators and large electricity consumers. It was established under Government Decree No. 57/2025/ND-CP dated March 3, 2025, as part of Vietnam’s roadmap for the development of the electricity market levels under Decision No. 63/2013/QD-TTg dated November 8, 2013, issued by the Prime Minister.

The mechanism is expected to expand green electricity purchasing options for large power consumers, promote transparency in electricity trading, and lay the groundwork for the future development of Vietnam’s retail electricity market.

Following a comprehensive review and assessment of documentation, technical requirements, and market participation conditions under the DPPA mechanism, NSMO reported to the Ministry of Industry and Trade and the Electricity Authority of Vietnam, while also notifying EVN, the Electricity Power Trading Company, and relevant stakeholders that TTC Duc Hue 2 Solar Power Plant had officially joined the competitive wholesale electricity market and the DPPA mechanism via the national grid from June 1, 2026.

The plant’s participation in the electricity market is implemented in accordance with Circular No. 16/2025/TT-BCT and Circular No. 36/2025/TT-BCT issued by the Ministry of Industry and Trade governing the operation of the competitive wholesale electricity market.

This marks the first power generation unit in Vietnam to officially participate in the DPPA mechanism through the national grid and conduct transactions via the electricity market. At the same time, Samsung Electronics Vietnam Thai Nguyen Co., Ltd. (SEVT) has become the first corporate customer in Vietnam to purchase renewable electricity through the DPPA mechanism.

The renewable electricity supplied to SEVT is generated by Duc Hue 2 Solar Power Plant, which has a designed capacity of 49 MWp/41.4 MWac and is located in Tay Ninh Province.

From the perspective of power system and electricity market operations, this milestone represents not only the first commercial transaction under the DPPA framework but also a significant practical step in implementing a new market mechanism. Electricity generated from renewable sources is delivered into the national grid, while electricity output is measured, verified, dispatched, traded, and settled through the electricity market in accordance with regulatory requirements.

In terms of operational conditions, Duc Hue 2 Solar Power Plant is located in southern Vietnam, an area with favorable solar irradiation conditions and an average annual sunshine duration of approximately 2,200–2,500 hours. These conditions provide a strong foundation for efficient solar power generation within the electricity market and DPPA framework.

The successful implementation of the first DPPA transaction through the national grid is expected to further accelerate renewable energy integration, enhance transparency in electricity trading, and support large consu/.