A Practical Roadmap for Developers, Infrastructure Funds, Corporate Offtakers and Energy Investors
\nBy Dr. Oliver Massmann (the architect of market access)
\nExecutive Summary
\nVietnam has moved beyond discussing renewable energy ambitions.
\nThe legal framework now exists.
\nThe Direct Power Purchase Agreement (DPPA) regime is operational. The Electricity Law provides the statutory foundation for direct electricity trading. Power Development Plan VIII continues to define the country\u2019s generation roadmap. Offshore wind, energy storage, green hydrogen and large-scale renewable energy projects remain national priorities.
\nThe critical question for investors is no longer whether Vietnam supports renewable energy investment.
\nThe critical question is:
\nHow can a project actually reach financial close and commercial operation?
\nBased on the current legal framework, investors should focus less on headline opportunities and more on project execution, bankability, site selection, offtake strategy and regulatory implementation.
\nThose who understand these practical realities are most likely to succeed.
\nThe Biggest Mistake Investors Still Make
\nMany investors continue to start with technology.
\nSolar.
\nWind.
\nBattery storage.
\nHydrogen.
\nOffshore wind.
\nThis is often the wrong starting point.
\nIn Vietnam, successful projects typically begin with a different question:
\nWho will buy the electricity?
\nThe most important commercial decision is often not the generation technology but the offtake structure.
\nInvestors should first determine whether their project will rely on:
\n\u2022\tDirect Power Purchase Agreements (DPPA);
\n\u2022\tElectricity sales into the national system;
\n\u2022\tIndustrial customers;
\n\u2022\tExport-oriented manufacturers;
\n\u2022\tGreen hydrogen production;
\n\u2022\tSelf-production and self-consumption models;
\n\u2022\tHybrid structures combining several of these approaches.
\nWithout a clear offtake strategy, project development risk increases significantly.
\nUnderstanding the DPPA Opportunity
\nArticle 47 of the Electricity Law now provides a clear legal basis for direct electricity trading between large electricity consumers and electricity generation units.
\nFor investors this means that corporate renewable energy procurement is no longer merely a policy objective.
\nIt is now part of Vietnam\u2019s electricity market structure.
\nThe most attractive potential customers include:
\n\u2022\tSemiconductor manufacturers;
\n\u2022\tElectronics producers;
\n\u2022\tData centres;
\n\u2022\tAutomotive manufacturers;
\n\u2022\tExport-oriented industrial groups;
\n\u2022\tRE100 participants;
\n\u2022\tLarge industrial parks.
\nMany of these companies face increasing pressure from customers, shareholders and regulators to reduce carbon emissions throughout their supply chains.
\nRenewable electricity procurement is therefore becoming a strategic business requirement rather than an environmental preference.
\nDevelopers that secure strong corporate offtakers early may gain a substantial competitive advantage.
\nSite Selection Is Becoming More Important Than Technology Selection
\nMany investors continue to evaluate projects primarily based on resource quality.
\nThis is no longer sufficient.
\nA successful project requires simultaneous consideration of:
\n\u2022\tResource availability;
\n\u2022\tGrid availability;
\n\u2022\tCurtailment risks;
\n\u2022\tFuture transmission capacity;
\n\u2022\tIndustrial demand;
\n\u2022\tLand availability;
\n\u2022\tPermitting complexity.
\nThe strongest solar resource or wind resource does not necessarily produce the strongest investment case.
\nIn practice, projects located near major industrial demand centres often benefit from advantages that cannot be achieved through resource quality alone.
\nEnergy Storage Is Becoming Increasingly Important
\nThe Electricity Law expressly encourages renewable energy projects combined with energy storage systems.
\nInvestors should pay close attention to this development.
\nHistorically, renewable energy projects focused primarily on generation capacity.
\nIncreasingly, value will be created through:
\n\u2022\tFlexibility;
\n\u2022\tDispatchability;
\n\u2022\tGrid support services;
\n\u2022\tDemand management;
\n\u2022\tEnergy storage integration.
\nBattery storage is moving from optional enhancement to strategic project component.
\nDevelopers who ignore storage may find themselves disadvantaged in future market structures.
\nOffshore Wind Remains a Strategic Long-Term Opportunity
\nVietnam possesses one of Asia\u2019s strongest offshore wind resource bases.
\nHowever, investors should approach the sector realistically.
\nThe opportunity is enormous.
\nThe execution challenge is equally significant.
\nSuccessful offshore wind projects will require:
\n\u2022\tLong-term capital commitments;
\n\u2022\tStrong local partnerships;
\n\u2022\tEarly engagement with authorities;
\n\u2022\tCareful management of marine permitting requirements;
\n\u2022\tComprehensive grid integration planning;
\n\u2022\tBankable offtake structures.
\nInvestors entering the sector should view offshore wind as a long-term strategic platform rather than a short-term development opportunity.
\nGreen Hydrogen and Green Ammonia: The Next Wave
\nThe Electricity Law formally recognizes green hydrogen and green ammonia.
\nThis is an important signal.
\nVietnam is not merely planning for renewable electricity generation.
\nVietnam is preparing for renewable industrialization.
\nFuture opportunities may emerge in:
\n\u2022\tIndustrial decarbonization;
\n\u2022\tExport-oriented hydrogen production;
\n\u2022\tSustainable fuels;
\n\u2022\tGreen ammonia manufacturing;
\n\u2022\tRenewable energy hubs integrating generation, storage and hydrogen production.
\nInvestors should begin evaluating these opportunities now, even if many projects remain several years from commercial maturity.
\nWhat Lenders Will Focus On
\nProject finance remains the ultimate test of investment quality.
\nLenders will continue to examine:
\n\u2022\tRevenue certainty;
\n\u2022\tOfftake quality;
\n\u2022\tCurtailment risk;
\n\u2022\tGrid connection risk;
\n\u2022\tRegulatory stability;
\n\u2022\tSponsor strength;
\n\u2022\tConstruction risk;
\n\u2022\tPermitting status.
\nProjects that address these issues early will be significantly better positioned to achieve financing.
\nThe strongest projects are not necessarily those with the highest generation potential.
\nThey are the projects that present the lowest overall risk profile.
\nWhat Investors Should Do Now
\nFor investors evaluating Vietnam\u2019s renewable energy market in 2026, several practical actions deserve priority:
\nFirst
\nIdentify suitable corporate offtakers before committing significant development expenditure.
\nSecond
\nConduct detailed assessments of grid availability and transmission constraints at an early stage.
\nThird
\nEvaluate whether energy storage should form part of the project\u2019s initial design.
\nFourth
\nMonitor implementation regulations affecting DPPA transactions, renewable energy pricing mechanisms and market liberalization.
\nFifth
\nDevelop a permitting strategy alongside the commercial strategy rather than treating permitting as a later-stage exercise.
\nSixth
\nBuild local partnerships capable of navigating regulatory, technical and commercial challenges.<\/p>\n
Conclusion
\nVietnam\u2019s renewable energy market has entered a new phase.
\nThe question is no longer whether opportunities exist.
\nThey do.
\nThe more important question is which investors can successfully convert those opportunities into bankable, operating projects.
\nThe Electricity Law, DPPA framework and broader energy transition policies have created a foundation for significant private investment.
\nSuccess, however, will depend less on identifying opportunities and more on executing projects efficiently, securing reliable offtake arrangements, managing regulatory requirements and achieving bankability.
\nFor investors prepared to focus on these fundamentals, Vietnam remains one of the most compelling renewable energy markets in Asia.<\/p>\n
***
\nFor more information on the above, please do not hesitate to contact the author Dr. Oliver Massmann under omassmann@duanemorris.com. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.<\/p>\n","protected":false},"excerpt":{"rendered":"
A Practical Roadmap for Developers, Infrastructure Funds, Corporate Offtakers and Energy Investors By Dr. Oliver Massmann (the architect of market access) Executive Summary Vietnam has moved beyond discussing renewable energy ambitions. The legal framework now exists. The Direct Power Purchase Agreement (DPPA) regime is operational. The Electricity Law provides the statutory foundation for direct electricity … <\/p>\n
Continue reading “Lawyer in Vietnam Dr. Oliver Massmann – Vietnam Renewable Energy and DPPA Projects in 2026: What Investors Need to Know to Get Projects Approved, Financed and Built”<\/span><\/a><\/p>\n","protected":false},"author":24,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"ppma_author":[1007],"class_list":["post-2006","post","type-post","status-publish","format-standard","hentry","category-vietnam-general"],"authors":[{"term_id":1007,"user_id":24,"is_guest":0,"slug":"omassmann","display_name":"Dr. Oliver Massmann","avatar_url":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-content\/uploads\/sites\/19\/2014\/08\/massmannoliver-125x150.jpg","author_category":"1","last_name":"Massmann","first_name":"Dr. Oliver","job_title":"","user_url":"http:\/\/www.duanemorris.com\/attorneys\/olivermassmann.html","description":"Read Oliver's bio.<\/a>"}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/posts\/2006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/comments?post=2006"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/posts\/2006\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/media?parent=2006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/categories?post=2006"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/tags?post=2006"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/ppma_author?post=2006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}