Vietnam Approves Direct Power Purchase Agreements

Vietnam has approved a new decree allowing large companies to buy electricity directly from renewable sources, known as Direct Power Purchase Agreements (DPPAs). This significant policy change, effective immediately, aims to alleviate pressure on the country's electricity grid and help major corporations like Samsung Electronics meet their climate targets. The shift ends the previous requirement for consumers to rely solely on the state-run utility, Vietnam Electricity, and is expected to stimulate investment in the renewable energy sector. Experts believe this move will enhance Vietnam's competitiveness in international markets that increasingly favor clean energy. The DPPA framework has been in development for over seven years and is anticipated to unlock up to $8 billion in clean energy investments. This initiative aligns with Vietnam's goal of achieving net-zero emissions by 2050.