Xuan Cau Holdings Starts Construction of 450 MW Solar Plant in Vietnam Under DPPA Framework

Vietnamese multi-sector corporation Xuan Cau Holdings has officially commenced construction of the Dau Tieng 5 solar power plant in Tay Ninh Province, southern Vietnam, marking a significant milestone in the country’s renewable energy expansion and the development of its emerging direct power purchase agreement (DPPA) market.

The project represents an investment of approximately VND 7.77 trillion (around US$296 million) and is expected to become one of Vietnam’s first renewable energy projects to operate under the DPPA mechanism, allowing renewable energy producers to directly supply electricity to large consumers.

Developed by DT5.1 Energy JSC, a subsidiary of Xuan Cau Holdings, the Dau Tieng 5 solar power plant will have an installed capacity of 450 MW and is scheduled to achieve commercial operation in December 2027.

The solar farm will be constructed on semi-submerged land surrounding the Dau Tieng Reservoir, an area previously used mainly for cassava cultivation. By utilizing existing land resources with strong solar potential, the project aims to maximize renewable energy generation while improving land-use efficiency and creating additional economic opportunities for the local community.

Once operational, the project is expected to generate approximately 808 GWh of clean electricity annually, supplying renewable power to Vietnam’s national grid and contributing to the country’s efforts to increase renewable energy penetration.

Speaking at the groundbreaking ceremony, To Dung, Chairman of Xuan Cau Holdings, highlighted that the Dau Tieng 5 project represents one of the early renewable energy developments adopting Vietnam’s DPPA mechanism. The model enables renewable energy generators to establish direct electricity sales agreements with major electricity consumers, providing a new pathway for corporate renewable energy procurement.

According to Xuan Cau Holdings, the project will not only support renewable power developers and large electricity consumers but also contribute to the development of Vietnam’s competitive electricity market by improving flexibility and diversity within the country’s power trading structure.

The Dau Tieng 5 project further strengthens Xuan Cau Holdings’ position as one of Vietnam’s major solar energy investors. Previously, the company developed the Dau Tieng 1, 2 and 3 solar complex, with a combined capacity of 500 MW, which was introduced as Southeast Asia’s largest solar power complex at the time of completion.

The earlier solar complex covers approximately 720 hectares, accounting for around 2.6% of the Dau Tieng Reservoir’s surface area, and was completed in approximately 10 months. The development helped establish Tay Ninh as one of Vietnam’s leading solar energy hubs.

The launch of the Dau Tieng 5 project reflects Vietnam’s continued efforts to accelerate renewable energy deployment, diversify electricity supply sources and encourage direct renewable energy transactions between generators and major consumers. As the DPPA framework develops, large-scale solar projects are expected to play an increasingly important role in supporting Vietnam’s energy transition and industrial decarbonization goals.