Vietnam parliament's resolution to allow more buyers under direct power purchase arrangements

The upcoming parliamentary resolution on mechanisms and policies to remove obstacles to national energy development for 2026-2030 will provide an open legal corridor that accelerates power grid and generation projects, writes Tran Hoai Trang, deputy director of the Electricity Authority.

The period 2026-2030 is the final five years for implementing the 10-year socio-economic development strategy 2021-2030. This requires a new vision, fresh thinking, and updated development perspectives, together with breakthrough solutions and strong determination to achieve faster and more sustainable growth. The aim is to usher the country into a new era - an era of rapid and prosperous national development.

In implementing the Politburo's Resolution No. 70-NQ/TW and the Prime Minister’s instructions in Official Dispatch No. 8617/VPCP-CN, the Ministry of Industry and Trade (MoIT) is finalizing a draft National Assembly resolution on mechanisms and policies to remove obstacles to national energy development for 2026-2030, to be submitted to the parliament's session (October 2025).

Timely removal of bottlenecks

The MoIT’s assessment of the need for this resolution notes that in 2026-2030, electricity demand is expected to continue rising sharply to meet the government’s target of double-digit economic growth. The ability to supply power will depend heavily on developing baseload sources (coal-fired power, LNG-fired power) as well as renewable energy, particularly generation in the northern region.

Resolution No. 70 sets the goal that by 2030, the country must firmly ensure national energy security; supply sufficient, stable, high-quality energy; reduce emissions while supporting socio-economic development; safeguard defense and security; raise living standards; and protect the environment and ecosystems.

Therefore, without timely removal of existing obstacles, there is a risk of power shortages for production and households, which would significantly affect energy security and national socio-economic development.

The MoIT has also reported on the implementation of adjustments to the National Power Development Plan for 2021-2030, with a vision to 2050 (Power Plan VIII). It has briefed the Prime Minister on difficulties and barriers encountered in implementing generation and grid projects, including policy bottlenecks, and proposed remedies for the near term.

Thus, to institutionalize the Party’s guidelines and the State’s laws, ensure legal consistency and completeness, address shortcomings and limitations, and promptly resolve new practical issues, issuing a parliamentary resolution on mechanisms and policies to remove obstacles to national energy development for 2026-2030 is essential.

Specifying policy provisions

The draft resolution will set out special mechanisms and policies to remove obstacles to national energy development in 2026-2030, including those related to power development planning; plans for development of distribution networks in provincial plans; investment and construction of power projects; offshore wind development; and the direct power purchase agreement (DPPA) mechanism.

The resolution will apply to agencies, organizations and individuals engaged in electricity activities, electricity users, or those otherwise involved in Vietnam’s electricity sector. Key provisions are as follows.

Power planning and provincial distribution network development

The draft resolution provides provisions allowing flexible adjustments to plans so they can meet practical needs and be feasible during implementation.

Investment and construction of power projects

The draft proposes cutting certain investment-preparation procedures for power projects (from planning to construction start, such as in-principle approval and investor selection).

These rules aim to reduce implementation time and investors’ compliance costs, thereby accelerating project progress and bringing power projects into operation sooner during 2026-2030.

Special mechanisms for BOT power projects

The draft adds tailored mechanisms for BOT power projects to meet investor expectations and enhance attractiveness to international financiers and foreign credit institutions.

It also proposes outstanding special mechanisms to resolve difficulties for imported LNG-fired power plants, focusing on long-term minimum power-offtake mechanisms and the duration of their application

Offshore wind development: The draft contains several points, including:

- Clarifying the handling of costs related to making surveys and proposals for in-principle approval when a competent authority assigns a wholly-state enterprise to carry out the work;

- Defining the authority of provincial People’s Committees to grant in-principle approval and organize bidding for selection of investors based on designated power collection points. This reflects a decentralization approach that empowers localities to decide, act, and take responsibility, while central agencies develop policy frameworks and supervise implementation;

- Granting the MoIT authority to publish survey area boundaries and project sea-use areas for offshore wind projects;

- Assigning tasks to large, reputable and capable state and private enterprises to carry out large-scale offshore wind development linked with national defense-security and protection of maritime sovereignty.

To receive such mandates, investors must demonstrate financial capability and a higher level of investment commitment than current rules require, proving their readiness to deliver projects on schedule under the Power Plan VIII;

- Introducing special, superior incentives for offshore wind projects that receive in-principle approval and are commissioned early in the 2030-2035 period.

Promoting DPPA mechanisms

The draft introduces provisions to better promote and implement DPPA mechanisms, in line with the spirit of Resolution No. 70 which calls for mobilizing all social resources and strongly encouraging private sector participation in energy development. Key directions include:

- Expanding scope of eligible buyers under DPPA arrangements;

- Removing price-cap rules for cases of direct power sales via dedicated connection grids;

- Clarifying the MoIT’s responsibilities in setting thresholds for large electricity customers participating in DPPA mechanisms, either via dedicated interconnection lines or through the national grid.

Conclusion

The above summarizes key contents and directions in the draft resolution compiled by the MoIT to institutionalize Resolution No. 70. These items require careful assessment of policy impact and feasibility in implementation and must gain approval from the National Assembly.

The MoIT hopes that, if enacted, this resolution will provide an open legal corridor that accelerates the development of power grid and generation projects, meeting the power demand as the country aims for sustained double-digit annual growth during 2026-2030.

* From a presentation by Tran Hoai Trang, deputy director of the Ministry of Trade and Industry's Electricity Authority, at the seminar on “Green Energy Transition from Perspective of Politburo’s Resolution No. 70”, hosted by The Investor on Thursday.