Vietnam has recently approved a government decree allowing Direct Power Purchase Agreements (DPPAs), enabling electricity-intensive factories to purchase electricity directly from wind and solar power producers. This move aims to assist major companies like Samsung Electronics in meeting their climate goals while alleviating strain on the country's electricity grid.
The previous regulation mandated all power consumers to rely solely on the state-run utility Vietnam Electricity (EVN) for electricity supply. The new decree permits foreign investors to engage in DPPAs, a change long sought after by investors crucial to Vietnam's growth as a significant exporter.
