Structure of the avoided cost tariff for small renewable energy power plants in Vietnam from February 1, 2025

Structure of the avoided cost tariff for small renewable energy power plants in Vietnam from February 1, 2025

The structure of the Avoided Cost Tariff for small renewable energy power plants is as follows:

- The Avoided Cost Tariff (excluding water resource tax, forest environmental service fees, water resource usage rights fees, value-added tax, and other fees, taxes, and charges as regulated by the competent state agency) is calculated based on the time of day and seasons of the year as detailed in Appendix I issued together with Circular 10/2025/TT-BCT, which includes 07 (seven) components as follows:

+ Dry season peak hours;

+ Dry season normal hours;

+ Dry season off-peak hours;

+ Rainy season peak hours;

+ Rainy season normal hours;

+ Rainy season off-peak hours;

+ Surplus electricity.

- The costs corresponding to the 07 (seven) tariff components include:

+ Costs of avoided electricity generation;

+ Costs of avoided transmission losses;

+ Costs of avoided capacity generation (applied only during peak hours of the dry season).

- The electricity usage time of the day applicable to the avoided cost tariff shall comply with the current retail electricity tariff or any replacement regulations.

For areas with transmission line overloads or excess electricity sources confirmed or announced by the Electric System and Market Operator; hydroelectric plants on the same cascade; hydroelectric plants providing water to downstream areas as requested by the provincial People's Committee:

Based on the electricity load demand of the system in each area, considering the loads that have self-utilized rooftop solar power to calculate and determine the small renewable energy power plants that need to shift peak generation hours (not shifting peak generation hours for each unit), the power purchaser and power seller negotiate peak hour pricing timeframes based on the principle of ensuring sufficient peak hours as regulated.

Refer to Circular 10/2025/TT-BCT which takes effect from February 1, 2025.

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