Than Trong Ly – Partner
Nguyen Thi Hong Nhung – Associate
Truong Chieu Minh – Paralegal
I. General information
Decree No. 243/2026/ND-CP (“Decree 243/2026”), coming into force as from 26 June 2026, amends and supplements a number of articles of: (i) Decree No. 57/2025/ND-CP dated 03 March 2025, providing regulations on the direct power purchase agreement mechanism between renewable energy power generation units and large electricity consumers (“Decree 57/2025”); and (ii) Decree No. 58/2025/ND-CP dated 03 March 2025, detailing a number of articles of the Law on Electricity regarding the development of renewable energy and new energy (“Decree 58/2025”).
II. Key changes compared to Decree 57/2025
| Content | Decree 57/2025 | Decree 243/2026 | Practical impact |
| Addition of participants in the Direct Power Purchase Agreement (DPPA) mechanism | The DPPA mechanism applies between renewable energy generation units and large electricity consumers. | Adds electricity retailers in industrial zone/cluster models[1], while expanding the scope of large electricity consumers to include data centers, EV charging stations/posts, and EV battery swapping cabinets connected at a voltage level of 22 kV or higher[2]. | Expands the scope of DPPA application, enabling more electricity consumers and distribution units to directly access renewable energy sources. This specifically supports the development of data centers and EV infrastructure, meeting the growing demand for green energy consumption. |
| DPPA transaction models | DPPA is implemented through 02 models: (i) via a private connection grid and (ii) via the national grid. Electricity retail units in industrial zone/cluster models are only permitted to participate in the mechanism via the national grid upon authorization by large electricity consumers. | Retains the 02 DPPA models but includes electricity retail units in industrial zone/cluster models as direct participants. It also introduces transaction models via private connection grids and allows electricity retail units in industrial zone/cluster models to directly execute contracts under the DPPA mechanism via the national grid (excluding urban areas and free trade zones)[3]. | Enhances flexibility in the transaction structure of renewable energy, allowing electricity retailers in industrial zones, economic zones, and industrial clusters to proactively participate in DPPA. This expands the deployment feasibility of renewable energy projects and diversifies green power supply methods for customers. |
| Principles of direct power purchase via a private connection grid | Electricity prices are negotiated by the parties but must not exceed the maximum ceiling of the corresponding electricity generation price bracket.
Surplus electricity from rooftop solar systems can only be sold up to a maximum of 20% of the actual generated electricity output. |
Electricity prices in power purchase agreements are freely negotiated and agreed upon by the parties, no longer restricted by the generation price bracket. Concurrently, the maximum allowable proportion of surplus electricity sold from rooftop solar systems is increased to 50% of the actual generated electricity output[4]. | Increases flexibility in electricity price negotiations and enhances the economic efficiency of rooftop solar projects. It reduces waste of surplus electricity, improves capital recovery capabilities, and incentivizes investment in renewable energy sources under the DPPA mechanism. |
| Procedure for participating in the DPPA mechanism via the national grid | Step 1: Large electricity consumers or authorized electricity retail units submit registration dossiers.
Step 2: The National System and Market Operator (“NSMO”) sends the dossiers to seek opinions from two entities:
Step 3: The entities confirm the feasibility of contract conversion and participation in the electricity market.
Step 4: The NSMO announces the expected date of DPPA application.
Step 5: The parties negotiate and execute contracts.
Step 6: Finalize technical infrastructure, metering systems, register for electricity market participation, and submit dossiers to the NSMO for inspection.
Step 7: The NSMO inspects, confirms, and announces the official operation date. |
Step 1: The parties agree to authorize a representative entity in accordance with the law to submit the registration dossier for participation in the DPPA mechanism to the NSMO.
Step 2: The NSMO verifies the validity of the dossier and reviews the electricity output allocation ratio.
If the dossier is valid, this agency reports to the Ministry of Industry and Trade and issues a written notice announcing the official date of participation in the DPPA mechanism to EVN, Power Corporations, Power Companies, renewable energy generation units, large electricity consumers, and electricity retail units in industrial zone/cluster models (excluding urban areas and free trade zones)[5]. |
Significantly streamlines the DPPA participation process by eliminating multi-tiered verification steps prior to contract signing, thereby accelerating project implementation progress and reducing administrative procedures. |
III. New key points compared to Decree 58/2025
| Content | Decree 58/2025 | Decree 243/2026 | Practical impact |
| Definition of rooftop solar power | Rooftop solar power refers to electricity generated from photovoltaic panels installed on the roof of a construction work. | Clarifies that rooftop solar power must be installed on the roof of a construction work that is a house or a house-like construction[6]. | Clarifies the criteria for determining structures eligible for the rooftop solar mechanism, potentially narrowing the scope for certain auxiliary structures or independent frameworks. However, practical application still requires further guidance as the concept of a ” house-like construction” has not been specifically defined. |
| Mechanism for purchasing surplus electricity from self-produced and self-consumed rooftop solar power | Allows certain entities to sell surplus electricity to the buyer of surplus electricity up to a maximum of 20% of the generated output based on radiation intensity.
Structures classified as public assets are prohibited from selling surplus electricity.
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Increases the permissible ratio of surplus electricity traded under mutual agreement up to a maximum of 50% of the generated output. Allows agreements on a ratio higher than 50% until the end of 31 December 2030, provided that the power grid ensures absorption capacity.
Expands the scope of eligible entities allowed to sell surplus electricity, including structures classified as public assets (subject to compliance with relevant laws)[7]. |
Enhances the exploitation and commercialization of surplus electricity from rooftop solar systems, improving investment efficiency and capital recovery. It also broadens opportunities for various entities, including public asset management units, to participate in the surplus electricity trading mechanism. |
| Zero-Export on/off device | Not regulated | Adds requirements on equipping a Zero-Export on/off device.
A Zero-Export on/off device is a control device designed to either permit (anti-reverse flow off mode) or prevent (anti-reverse flow on mode) active power injection into the grid via an on or off mechanism. This device can be integrated within the inverter, integrated into monitoring and control equipment, or function as an independent device.[8] |
Enhances control over the power capacity injected into the power grid, ensuring the safe operation of the electrical system. |
| Transitional provisions for rooftop solar systems installed before 01 January 2021 | Organizations and individuals owning rooftop solar power sources prior to 01 January 2021, who are trading electricity with power utilities, are not permitted to develop additional power sources that increase the installed capacity stipulated in the executed contract. | Organizations and individuals currently selling electricity to power utilities from rooftop solar systems installed prior to 01 January 2021, are permitted to develop additional self-produced and self-consumed rooftop solar power sources, provided that such additions do not increase the installed capacity of the rooftop solar power system installed prior to 01 January 2021, under the power purchase agreement executed with the power utility[9]. | Enables existing investors to expand their capacity for self-consumption of renewable energy without affecting the electricity trading mechanism applied to their pre-existing systems. |
[1] Article 1.1 Decree 243/2026
[2] Article 1.2(b) Decree 243/2026
[3] Article 1.4 Decree 243/2026
[4] Article 1.6(d) Decree 243/2026
[5] Article 1.22 Decree 243/2026
[6] Article 2.1 Decree 243/2026
[7] Article 2.8 Decree 243/2026
[8] Article 1.3 Decree 243/2026
[9] Article 2.27 Decree 243/2026
