Decree 57/2025/ND-CP
Vietnam's direct power purchase agreement framework, in force since 3 March 2025.
Status: In force · Last material amendment: Resolution 253/2025/QH15 (11 December 2025) — implementing decree pending · This page last updated: 23 April 2026
Key facts
| Issued | 3 March 2025 by the Government of Vietnam |
|---|---|
| Effective | Immediately on issuance (3 March 2025) |
| Replaces | Decree 80/2024/ND-CP (in force only 3 July 2024 – 2 March 2025) |
| Governs | Direct power purchase agreements between RE generators and large consumers via private wire or via the national grid |
| Status | In force. Amending implementing decree pending per Resolution 253/2025/QH15 |
| Last material amendment | Resolution 253/2025/QH15, National Assembly, 11 December 2025 |
| Key thresholds | Consumer threshold 200,000 kWh/month average; connection ≥22 kV; biomass generator ≥10 MW for grid-connected |
| Related regulations | Decree 58/2025/ND-CP (self-consumption); Circular 16/2025/TT-BCT (VWEM operation); Circular 62/2025/TT-BCT (standalone BESS); Decision 988/QD-BCT (RE ceiling tariffs) |
What Decree 57 actually does
Who can participate in a DPPA under Decree 57?
Decree 57 permits DPPAs between renewable energy generators and large electricity consumers, with eligibility thresholds defined by MOIT rather than fixed in the decree itself.
On the seller side, eligible RE generators include solar (ground-mounted, floating, rooftop), wind, small hydro, biomass ≥10 MW for grid-connected, geothermal, ocean energy, and waste-to-energy. Electric vehicle charging service providers became eligible as buyers for the first time under Decree 57. On the buyer side, consumers must average ≥200,000 kWh/month per Circular 16/2025/TT-BCT and connect at ≥22 kV for grid-connected DPPAs — though Resolution 253/2025 expanded eligibility to retail electricity units within industrial parks, economic zones, export processing zones, high-tech parks, and free trade zones.
In practice: the 200,000 kWh/month threshold excludes most hotels and SMEs but includes mid-to-large factories and every hyperscale data centre.
What's the difference between private wire and grid-connected DPPA?
Model 1 is a physical private transmission line between generator and consumer with no EVN involvement; Model 2 is a three-contract synthetic structure that uses the EVN grid with a financial settlement.
Under Model 1 (private wire), the generator builds and owns the transmission infrastructure — overhead lines, cables, transformers, substations — connecting directly to the consumer. No formal registration is required; the consumer reports the executed PPA to the provincial People's Committee, the local power company, and the National System and Market Operation Company (NSMO). Under Model 2 (grid-connected), the generator sells all output to the Vietnam Wholesale Electricity Market (VWEM) at spot price, the consumer buys physical electricity from EVN at the retail tariff, and a forward contract (or contract for differences) between generator and consumer settles the difference against an agreed strike price.
In practice: Model 1 works for consumers physically near generation and willing to build private infrastructure; Model 2 works for any grid-connected consumer meeting the threshold but introduces EVN wheeling charges that can erode the commercial case.
What changed with Resolution 253/2025/QH15?
On 11 December 2025, the National Assembly issued Resolution 253/2025/QH15 which removed Decree 57's ceiling-price constraint for private DPPAs and expanded eligibility to industrial park retailers, pending an implementing decree.
Under the original Decree 57 text, prices negotiated under private DPPA and forward contracts under grid-connected DPPA could not exceed the MOIT ceiling tariff published annually under the generation price framework (for example, ground-mounted solar at VND 1,012–1,382.7/kWh per Decision 988/QD-BCT, April 2025). Resolution 253 overrides this: electricity prices under private DPPA and grid-connected DPPA forward contracts shall be negotiated and agreed freely between seller and buyer. The Resolution also expanded eligible consumers to include retail electricity units within industrial parks, economic zones, processing zones, industrial clusters, high-tech parks, centralised digital technology parks, high-tech agricultural zones, and free trade zones — addressing a long-standing request from industrial park developers such as BECAMEX-VSIP.
In practice: until the amending implementing decree is issued (expected from March 2026 under simplified procedures), the market is operating in a transitional period — Resolution 253 is legally in force but the detailed mechanism for free price negotiation is not yet specified.
How does EVN's wheeling charge (CDPPA) work?
CDPPA is the grid service charge EVN collects from DPPA participants on Model 2 (grid-connected) arrangements; it covers transmission, distribution, retail, system operation, market transaction, and sector administration costs.
The total cost a consumer pays under a grid-connected DPPA follows the formula CKH = CĐN + CDPPA + CCL + CBL, where CĐN is the energy charge at VWEM spot price, CDPPA is the EVN grid service charge, CCL is the difference clearing charge (the gap between the DPPA strike price and the spot price), and CBL is the supplementary purchase at retail tariff for any balance not covered by the DPPA. CDPPA is set annually by MOIT with no cap on year-on-year increases — an industry request to limit annual increases to ≤3% has not been adopted. In practice, the total DPPA cost for corporate offtakers can approach or exceed the standard EVN retail tariff once CDPPA and CCL are added.
In practice: the commercial case for Model 2 DPPA rests on ESG motivations, corporate 100% renewable commitments, or an expectation that EVN retail tariffs rise faster than CDPPA — not on headline price savings.
Where is the double-charging risk with the two-part tariff?
The capacity charge under Vietnam's new two-part retail tariff and the CDPPA grid service charge under Decree 57 both recover grid-infrastructure costs — without regulatory clarification, Model 2 DPPA offtakers may pay the capacity component twice.
Under EVN's two-part tariff (parallel shadow billing since 1 January 2026, real-money billing from 1 July 2026), large industrial consumers pay a fixed capacity charge based on their maximum 30-minute demand (Pmax) plus a variable energy charge. Under Decree 57, Model 2 DPPA offtakers pay CDPPA which already includes transmission, distribution, and system operation costs. Norton Rose Fulbright confirmed in January 2026 that DPPA offtakers will likely still need to pay the full capacity charge to EVN for grid availability, reducing total DPPA cost savings. An amendment to Decree 57 addressing the overlap is pending.
In practice: any DPPA term sheet signed in 2026 should include a side letter or change-in-law clause specifically addressing how the capacity charge is handled once the amending decree clarifies the netting mechanism.
Timeline
Articles and thresholds
Eligible renewable energy generators
Covers solar (ground-mounted, floating, rooftop), wind, small hydro, biomass, geothermal, ocean energy, tidal, and waste-to-energy. Minimum installed capacity for grid-connected DPPA (Model 2) participation is 10 MW, applied to solar, wind, and biomass — biomass being newly eligible under Decree 57. There is no minimum capacity for private wire Model 1 arrangements.
In practice: the broadened scope (versus Decree 80's solar-and-wind-only list) opens DPPA to biomass developers in agricultural provinces, but the 10 MW minimum still excludes most C&I-scale RE projects from Model 2.
Eligible large consumers
Consumers purchasing electricity for production purposes or for EV charging services, connected at ≥22 kV, and meeting the minimum consumption threshold defined by MOIT in the Wholesale Electricity Market Operation Regulations. Circular 16/2025/TT-BCT sets that threshold at 200,000 kWh/month average, but MOIT is empowered to adjust it. Resolution 253/2025 expanded the list of eligible consumers to include industrial park retailers.
In practice: EV charging operator eligibility is a deliberate signal — Vietnam wants the DPPA framework to support its electrification roadmap, not just traditional manufacturing offtake.
DPPA Model 1 — private wire
Permits RE generators to build, own, and operate private transmission infrastructure — overhead lines, underground cables, transformers, substations — connecting directly to consumer facilities without connecting to the national grid. No formal registration required; the consumer reports the executed PPA to the provincial People's Committee, the local power company, and NSMO within a statutory timeframe.
In practice: Model 1 is commercially viable where generation and consumption are physically close (industrial parks, co-located facilities); construction cost and right-of-way become the binding constraints rather than regulation.
DPPA Model 2 — grid-connected
Three-contract structure: (a) RE generator signs a power purchase agreement with EVN to sell all output to VWEM at spot price; (b) the consumer signs a retail PPA with EVN or its subsidiary for physical electricity delivery at the retail tariff; (c) RE generator and consumer sign a forward contract (or contract for differences) settling the difference between the agreed strike price and the VWEM spot price. One generator may contract with multiple consumers, with output allocated by agreed percentage not exceeding 100%.
In practice: Model 2 is the bankable option for consumers not physically near generation, but it introduces CDPPA and CCL charges that reshape the commercial calculation significantly.
Pricing under Decree 57
Under the original Decree 57 text, Model 1 private DPPA prices are negotiated bilaterally but cannot exceed the MOIT ceiling tariff for the corresponding RE type (published annually; see Decision 988/QD-BCT for 2025 rates). Model 2 forward-contract strike prices are similarly subject to the ceiling. Resolution 253/2025/QH15 overrode this constraint for both private DPPA and grid-connected forward contracts, stating prices shall be negotiated and agreed freely — but the implementing decree specifying how this operates in practice is pending.
In practice: until the implementing decree is issued, counterparties negotiating a DPPA in 2026 are operating in a regulatory grey zone on pricing; prudent practice is to reference both the ceiling tariff and the Resolution 253 liberalisation in the contract text.
Reporting obligations
Consumers under Model 1 must report executed PPAs to (a) the provincial People's Committee, (b) the competent local power company, and (c) the competent system operator (NSMO). Generators and consumers under Model 2 have additional reporting obligations related to VWEM participation, covered in Circular 16/2025/TT-BCT.
In practice: missed reporting is one of the most common compliance failures — build the reporting workflow into the project handover, not the legal checklist.
Policy misuse and termination
DPPA operation may be suspended by MOIT where (a) the electricity market itself is suspended, (b) one of the PPAs is suspended or expires, (c) the consumer's consumption rate falls below the minimum threshold over a calendar year, or (d) MOIT determines the policy has been misused or used for profiteering. Suspension decisions are made by MOIT and can be reversed if the cause is remedied.
In practice: Article 27 is the enforcement tooth of Decree 57 — the termination risk is real and shapes lender behaviour on any project-financed DPPA.
Commercial implications
Decree 57 is the single most important instrument for C&I-scale solar and BESS in Vietnam because it is the only legal pathway for a renewable generator to sell electricity directly to a corporate offtaker above the self-consumption limit. The commercial reality is more complicated than the headline: the 200,000 kWh/month threshold excludes most of the SME market, the CDPPA wheeling charge can erode Model 2 savings to near-zero, and the pending amending decree means any DPPA signed in 2026 needs change-in-law protection for the two-part tariff overlap. Decree 57 opened the door — but Resolution 253 and the forthcoming implementing decree determine how wide.
- For hotels Decree 57 is mostly out of reach. A 200-room resort rarely consumes ≥200,000 kWh/month, putting DPPA participation out of reach for all but the largest integrated-resort operators. The right path for hospitality remains Decree 58 self-consumption plus targeted BESS. See how this applies to hotels →
- For factories Decree 57 is live and closing. Mid-size and large factories above the 200,000 kWh/month threshold are the core DPPA market, with Korean and Japanese manufacturers leading adoption. The practical question is whether Model 1 private wire is feasible (depends on industrial park infrastructure) or Model 2 grid-connected is the only option (in which case CDPPA and the two-part tariff overlap dominate the calculation). See how this applies to factories →
- For data centres Decree 57 is foundational. Every hyperscale data centre in Vietnam will exceed the 200,000 kWh/month threshold from day one, and corporate 100% renewable commitments from Google, Microsoft, Amazon, and Meta make DPPA offtake the default rather than the exception. The binding constraint is usually not eligibility but Model 1 infrastructure feasibility given siting away from generation. See how this applies to data centres →
For any C&I project with a plausible DPPA route, the practical action now is to structure term sheets assuming Resolution 253's free-price negotiation applies, include an explicit change-in-law clause for the amending implementing decree expected from March 2026, and build the two-part tariff double-charging resolution into the commercial model on an either/or basis. This is the kind of detail that determines whether a five-year-modelled IRR survives first contact with the July 2026 billing rollout.
Worked example
A manufacturing facility in Binh Duong signing a Model 2 grid-connected DPPA
Setup
- FacilityManufacturing, Binh Duong province, connected at 22 kV
- Consumption~2,400,000 kWh/month — well above the 200,000 kWh/month threshold
- TOU split25% peak / 60% standard / 15% off-peak — typical three-shift profile
- Current EVN tariff22 kV manufacturing: VND 3,398 peak / 1,833 standard / 1,190 off-peak per kWh (Decision 1279); blended VND 2,128/kWh at the TOU split above
- DPPA counterpartyGround-mounted solar + BESS IPP, 50 MW, ~30 km from facility
- Agreed strike priceVND 1,280/kWh — negotiated under Resolution 253/2025's freed pricing (the Decision 988 ground-mount + BESS South ceiling was VND 1,149.86/kWh before liberalisation)
The numbers
| Component | Rate (VND/kWh) | Monthly cost (VND million) |
|---|---|---|
| CĐN — energy at VWEM spot (assumed avg) | ~1,100 | 2,640 |
| CDPPA — EVN grid service charge | ~420 | 1,008 |
| CCL — difference clearing (strike − spot, on 90% DPPA volume) | ~180 | 389 |
| CBL — supplementary retail purchase (~10%) | ~2,128 | 511 |
| Total DPPA cost (CKH) | ~1,895 | ~4,547 |
| Comparator: full EVN retail tariff | ~2,128 | ~5,107 |
| Delta vs EVN retail | −233 VND/kWh | −560 (≈ −11%) |
At a VND 1,280/kWh strike price negotiated under Resolution 253's freed pricing, this DPPA structure costs roughly 11% less than continuing to buy at the full EVN retail tariff — a monthly saving of ~VND 560 million, or approximately USD 22,000 per month and USD 263,000 per year at April 2026 FX. The headline case is genuinely commercial, not purely ESG-driven. Two risks temper this: (i) from 1 July 2026, the two-part tariff capacity charge layers on top of CDPPA, and Norton Rose Fulbright's January 2026 commentary confirms DPPA offtakers will likely pay the full capacity charge — materially eroding the 11% delta until the amending decree resolves the overlap; and (ii) CDPPA is set annually by MOIT with no cap on year-on-year increases, so the ~420 VND/kWh rate used here is a 2025 reference point that could rise. Any DPPA term sheet signed in 2026 should include an explicit change-in-law clause for both the two-part tariff overlay and a CDPPA escalation mechanism.
Source: Arcus Energy project analysis, anonymised; figures rounded. Rates referenced: Decision 1279/QĐ-BCT (May 2025) for 22 kV manufacturing TOU rates, Decision 988/QD-BCT (April 2025) for the solar+BESS ceiling reference, Circular 16/2025/TT-BCT for the 200,000 kWh/month threshold, Norton Rose Fulbright January 2026 commentary for the double-charging risk characterisation.
Frequently asked questions
What is Decree 57/2025 in Vietnam?
Decree 57/2025/ND-CP is the Vietnamese government decree regulating direct power purchase agreements (DPPAs) between renewable energy generators and large electricity consumers. It took effect on 3 March 2025, replacing Decree 80/2024, and introduces two DPPA models: private wire and grid-connected via the national grid.
How is Decree 57 different from the old Decree 80?
Decree 57 broadened eligible RE sources (adding biomass to grid-connected DPPA), expanded eligible consumers (adding EV charging providers), removed the fixed 200,000 kWh/month threshold from the decree itself (MOIT now sets it in Circular 16/2025), and removed the rigid PPA templates Decree 80 imposed. Resolution 253/2025 later liberalised private DPPA pricing.
Can a hotel or small factory participate in a DPPA?
Usually not. The 200,000 kWh/month average consumption threshold set by Circular 16/2025/TT-BCT excludes most hotels and smaller factories. Hotels typically pursue Decree 58 self-consumption rooftop solar instead. Factories above roughly 2–3 MW connected load usually cross the threshold and become eligible.
What is the 200,000 kWh/month threshold?
It is the minimum average monthly electricity consumption required for a consumer to participate in a DPPA under Decree 57, set by Circular 16/2025/TT-BCT. The threshold is measured over a 12-month rolling window. Consumers with less than 12 months of history must commit to meeting the threshold within the first year.
What changed with Resolution 253/2025 in December 2025?
National Assembly Resolution 253/2025/QH15, dated 11 December 2025, removed Decree 57's ceiling-price constraint: electricity prices under private DPPA and grid-connected forward contracts are now negotiated freely. The resolution also expanded eligibility to retail electricity units within industrial parks, economic zones, and similar zones. The implementing decree is pending.
Can I sign a DPPA directly with a solar developer?
Yes, through Model 1 (private wire) if you can build a direct transmission line between the generator and your facility, or through Model 2 (grid-connected) via a three-contract structure involving EVN, VWEM, and a forward contract with the generator. Both paths require meeting the consumption and voltage thresholds.
What is the CDPPA grid service charge?
CDPPA is the annual EVN charge levied on Model 2 (grid-connected) DPPA participants to cover transmission, distribution, retail, system operation, market transaction, and sector administration costs. It is set annually by MOIT with no statutory cap on year-on-year increases. In practice it can be a significant portion of total DPPA cost.
Is there a double-charging risk with EVN's two-part tariff?
Yes. Both the capacity charge under the two-part retail tariff (parallel shadow billing since 1 January 2026, real-money billing from 1 July 2026) and the CDPPA charge under Decree 57 recover grid infrastructure costs. Norton Rose Fulbright noted in January 2026 that DPPA offtakers will likely still pay the full capacity charge. An amending decree is pending to clarify.