04 cases of exemption from electricity license in Vietnam

On October 16, 2018, the Ministry of Industry and Trade of Vietnam issued Circular No. 36/2018/TT-BCT on procedures for issuance and revocation of electricity licenses.

According to Circular No. 36/2018/TT-BCT of the Ministry of Industry and Trade of Vietnam, cases of exemption from electricity license include:

- The generation of electricity is to serve domestic consumption without selling electricity to any other organizations or individuals.

- The generation of electricity with an installed capacity of not exceeding 01 MW (or 01 MWp if it is a solar power plant installed at a single location and having one point of connection) is to sell electricity to other organizations or individuals.

- Electricity traders in rural, mountainous or island regions purchase electricity with a capacity of not exceeding 50 kVA from electricity distributors for supplying electricity directly to consumers in such rural, mountainous or island regions.

- Electricity activities are performed to serve the national electrical load dispatch and management of electricity market.

Besides, scope of each of electricity licenses is also specified as follows:

- A license for electrical consulting services can be used nationwide.

- A license for electricity generation can be used within the scope of each power plant.

- A license for electricity transmission or electricity distribution can be used within the scope of management and operation of a specific electrical grid.

- A license for electricity wholesaling or electricity retailing can be used within a prescribed administrative division.

View relevant provisions at Circular No. 36/2018/TT-BCT of the Ministry of Industry and Trade of Vietnam, effective from December 06, 2018.

- Thanh Lam -

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