Vietnam's direct power purchase agreement is moving from plans to action as renewable energy developers and big electricity users invest in large projects.

One example is the Dau Tieng 5 Solar Power Plant, built by DT5.1 Energy JSC. Construction started on August 4 in Tay Ninh Province. The project is big. It will help Vietnam's power grid.

The project will cover about 645 hectares and cost around VND7.774 trillion. It will be near Dau Tieng Reservoir.

The plant will start working in December 2027.

Big renewable energy investments are happening.

The plant will make about 808 GWh of clean electricity each year, helping Vietnam's national power grid.

The project includes solar panels, inverters, and a battery storage system. It will have a 220kV substation and transmission lines to maximize power output and improve grid stability.

Xuan Cau Holdings says the project is one of the first under Vietnam's direct power purchase plan, marking a big step in making the policy work.

The company signed a power purchase agreement with a big foreign manufacturer, showing that renewable energy developers can deliver projects on time and safely.

Earlier this year, Samsung Electronics Vietnam Thai Nguyen and the TTC Duc Hue 2 Solar Power Plant started working under the direct power purchase plan.

Samsung will get about 70 GWh of renewable electricity each year, enough for 17,000 households.

The policy is moving from plans to action.

Over a year after the decree that started Vietnam's direct power purchase plan, more companies are doing projects under the new rules.

The Ministry of Industry and Trade says this progress is a good step towards a competitive electricity market.

Many companies have started working on projects with dedicated grid connections since the decree started.

More companies can now join under new rules.

The government changed the rules for the direct power purchase plan and renewable energy development.

The new rules make it easier for more companies to join.

Now, data centers and companies with electric vehicle charging stations can also join the direct power purchase plan.

Renewable energy developers making rooftop solar systems for big customers don't need to register new projects anymore.

Electricity retailers in industrial parks can now sign power purchase agreements directly with renewable energy producers.

These retailers can also invest in renewable energy projects and sell electricity to big customers.

One big change is that electricity prices in private agreements can be negotiated freely, without a price limit.

Green electricity is seen as a competitive advantage.

Nguyen Huy Hoach says the direct power purchase plan is important for all companies, not just foreign ones.

Local manufacturers in sectors like electronics and textiles need to reduce carbon emissions to keep export orders.

Having access to renewable electricity is becoming a key advantage for companies.

The plan will also make Vietnam more attractive to investors.

As countries compete for foreign investment, having reliable renewable electricity can be a big plus.

However, Nguyen Huy Hoach says the benefits depend on how well the plan is implemented.

If companies face long procedures, the plan's value will be reduced.

He says Vietnam should focus on making the implementation more efficient with clear rules and lower costs.

Only then can the direct power purchase plan help Vietnam's energy transition and make its businesses more competitive.

Tam An