Decree No. 243/2026/ND-CP Amending and Supplementing Regulations on the Direct Power Purchase Agreement Mechanism and Renewable Energy Development

On June 26, 2026, the Government issued Decree No. 243/2026/ND-CP amending and supplementing Decree No. 57/2025/ND-CP on the direct power purchase agreement (DPPA) mechanism between renewable energy generation units and large electricity consumers, and Decree No. 58/2025/ND-CP detailing the implementation of the Law on Electricity regarding the development of renewable energy and new energy.

The Decree aims to address practical difficulties and obstacles in implementing the DPPA mechanism under Decree No. 57/2025/ND-CP and introduces corresponding amendments to Decree No. 58/2025/ND-CP concerning DPPAs and rooftop solar power development.

Eligible Participants and Requirements for Participating in the DPPA Mechanism

In addition to renewable energy generation units and large electricity consumers, Decree No. 243/2026/ND-CP expands the scope of eligible DPPA participants by adding “electricity retailers operating in industrial parks and clusters.”

The Decree also provides further clarification on the electricity consumption volume requirements applicable to the two types of participants: large electricity consumers and electricity retailers operating in industrial parks and clusters.

Direct Power Purchase and Sale Through Private Connection Grids

Under the new regulations, electricity prices are freely negotiated and agreed upon by the parties and are not subject to the ceiling price under the applicable power generation price framework.

For rooftop solar power, surplus electricity sales to EVN and its subsidiaries may increase to no more than 50% of the actual electricity output. The applicable electricity price is the average price for the preceding year announced by the electricity system and market operator, provided that it does not exceed the ceiling price under the power generation price framework applicable to the corresponding ground-mounted solar power category. Meanwhile, the volume of surplus electricity and the purchase and sale price when selling electricity to retailers operating in industrial parks and clusters are entirely subject to mutual agreement between the two parties.

For other power sources, the surplus electricity volume and purchase and sale price are subject to mutual agreement between the two parties but must not exceed the ceiling price under the power generation price framework applicable to the corresponding power generation category.

Rooftop solar power systems selling electricity directly to large electricity consumers are not required to carry out procedures for registering power generation development.

Development of Self-Produced and Self-Consumed Rooftop Solar Power

Decree No. 243/2026/ND-CP also amends and supplements Decree No. 58/2025/ND-CP to ensure consistency with the DPPA regulations and encourage the development of self-produced and self-consumed rooftop solar power.

Surplus electricity generated by self-produced and self-consumed rooftop solar power systems may be purchased and sold at a rate exceeding 50% of the electricity output at the rooftop solar power system's output terminal until December 31, 2030, provided that the grid in the connection area has sufficient capacity to receive the electricity and that the electricity purchase and sale arrangements satisfy the requirements for safe grid operation and the power system operating plan. After December 31, 2030, the volume of surplus electricity purchased and sold must not exceed 50%.

Power sources connected to the national power system that are required to register for power generation development are rooftop solar power systems connected at medium voltage or higher and selling surplus electricity.

Accordingly, Decree No. 243/2026/ND-CP introduces regulations that gradually address difficulties encountered in implementing DPPAs and encourage the development of self-produced and self-consumed solar power. This provides businesses with a clearer legal basis for participating in and implementing DPPAs. Businesses can access renewable electricity at more flexible costs and take a more proactive approach to securing a stable green power supply, maintaining production stability and reducing dependence on the competitive electricity market.

For further details, please refer to Decree No. 243/2026/ND-CP: Official legal document