Vietnam reboots direct clean-power push after pricing hurdles slow corporate uptake
Market players say there is long-term upside in the new mechanism even as subsidy-era disputes remain unresolved
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[HO CHI MINH CITY] New policies and forthcoming regulatory updates are giving Vietnam’s developers of renewable energy clearer pathways to sell power directly to large consumers.
These moves push the country towards a market-based system for the generation, sale and purchase of energy from greener sources, and are a key reform aimed at unlocking investment and helping enterprises to meet environmental, social, and governance (ESG) commitments.
The Direct Power Purchase Agreement (DPPA) framework was introduced more than a year and a half ago, but take-up has been modest because energy developers and corporate offtakers (the major consumers of energy) have struggled to agree on pricing, contract terms and legal risks.
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