Principles for establishing the framework for electricity generation pricing in Vietnam from February 1, 2025

Principles for establishing the framework for electricity generation pricing in Vietnam from February 1, 2025​ (Image from the internet)

On February 1, 2025, the Minister of Industry and Trade issued Circular 09/2025/TT-BCT regulating the dossiers, orders, procedures, and methods for determining and approving electricity generation price frameworks; regulating the dossiers, orders, procedures for constructing and approving electricity import price frameworks.

Principles for establishing the framework for electricity generation pricing in Vietnam from February 1, 2025

According to Article 3 of Circular 09/2025/TT-BCT, the electricity generation price framework is established under the following principles:

- The electricity generation price framework ranges between a minimum price (0 VND/kWh) and a maximum price.

- The maximum price is the corresponding electricity generation price for each type of power plant (excluding hydropower plants) determined by the methods prescribed in Article 4, Article 5, Article 6, and Article 7 of Circular 09/2025/TT-BCT.

- For hydropower plants, the maximum price is based on the annual avoidable cost tariff table determined by the methods prescribed in Article 8 of Circular 09/2025/TT-BCT.

- The electricity generation price framework for solar power plants is based on the average annual radiation intensity of the three regions: the North, the Central, and the South.

- In cases where the power plant type does not have an approved Investment Feasibility Study Report or basic design appraisal, the calculation parameters for the electricity generation price framework are determined by the methods prescribed in Circular 09/2025/TT-BCT based on consulting organizations' references.

- For renewable energy power plants with combined energy storage systems, if the energy storage system only consumes electricity from the same renewable energy power plant during its charge cycle, the total investment calculation for the electricity generation price framework will include the investment costs of the energy storage system items.

Procedures for approving the electricity generation price framework in Vietnam

- Within 15 days from the approval of the Investment Feasibility Study Report of the power plant and the basic design appraisal, the investor of these power plants is responsible for providing the Investment Feasibility Study Report and basic design to the Vietnam Electricity Group.

- Before November 1 annually, the Vietnam Electricity Group is responsible for:

+ Proposing the calculation parameter module and selecting the calculation parameters for the electricity generation price framework for various types of power plants;

+ Calculating or potentially hiring consultants to choose the calculation parameters, calculating the maximum price of the electricity generation price framework for various types of power plants as stipulated in Chapter II of Circular 09/2025/TT-BCT.

+ Preparing a calculation dossier for the electricity generation price framework as stipulated in Article 12 of Circular 09/2025/TT-BCT and submitting it to the state electricity regulatory agency for appraisal.

- Within 5 working days of receiving the calculation dossier for the electricity generation price framework, the state electricity regulatory agency is responsible for checking the completeness and validity of the submission.

If necessary, the state electricity regulatory agency of the Ministry of Industry and Trade may request the Vietnam Electricity Group in writing to revise, supplement, or clarify contents in the dossier.

No later than 15 days from receiving the request to revise, supplement, or clarify contents in the dossier by the state electricity regulatory agency of the Ministry of Industry and Trade, the Vietnam Electricity Group is responsible for submitting a report explaining the contents in the dossier as required.

- Within 25 days from the receipt of a valid request for the approval of the electricity generation price framework, the state electricity regulatory agency of the Ministry of Industry and Trade is responsible for appraising the electricity generation price framework and submitting it to the Minister of Industry and Trade for approval. If the next year's electricity generation price framework has not been announced, the previous year's electricity generation price framework may temporarily be applied.

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