Samsung Thai Nguyen signs Vietnam's first grid-connected DPPA with Duc Hue 2 solar plant

Vietnam's first grid-connected Direct Power Purchase Agreement (Model 2 DPPA) has been officially executed, marking a significant milestone for the renewable energy sector. The transaction between Samsung Electronics Vietnam Thai Nguyen (SEVT) and TTC Duc Hue 2 Solar Power Plant represents the first practical implementation under Vietnam's new legal framework for renewable energy trading.

Regarding the contractual structure: This model bypasses the traditional single-buyer electricity purchasing mechanism by establishing a tripartite arrangement. SEVT (as a large power consumer) and TTC Duc Hue 2 (as a renewable energy generator) use a Contract for Difference (CfD) to hedge electricity prices. The generator sells its total output into the Vietnam Wholesale Electricity Market (VWEM) at spot prices, while SEVT purchases equivalent consumption from the national grid and settles price variances through the forward contract.

The National Load Dispatch Centre (NSMO) has formally cleared the 49 MWp TTC Duc Hue 2 facility for competitive market participation, confirming compliance with technical standards, metering infrastructure, and remote data collection protocols. The transaction is governed by Circular 16/2025/TT-BCT and Circular 36/2025/TT-BCT.

The legal foundation transitions from Decree 80/2024/ND-CP to Decree 57/2025/ND-CP, aligning DPPA mechanisms with the amended Law on Electricity. This framework sets strict eligibility thresholds, including a minimum 22kV connection voltage for large consumers and explicit reporting obligations to provincial People's Committees and system operators.

This transaction sets a precedent for corporate off-site renewable energy procurement through the national grid in Vietnam, opening opportunities for enterprises with RE100 and Net Zero commitments.