To provide detailed provisions guiding the new Law No. 61/2024/QH15 on Electricity passed by the National Assembly on 30 November 2024 (“Electricity Law”), on 3 March 2025, the Government issued a series of Decrees, namely
(i) Decree No. 56/2025/ND-CP providing detailed guidance on the implementation of a number of articles of the Electricity Law regarding power development planning, power grid expansion, investment in power projects, and bidding for electricity projects (“Decree 56”),
(ii) Decree No. 57/2025/ND-CP regulating direct power purchase mechanism between renewable energy generators and large electricity users (“Decree 57”),
(iii) Decree No. 58/2025/ND-CP providing detailed guidance on a number of articles of the Electricity Law regarding the development of renewable energy and new energy (“Decree 58”),
(iv) Decree No. 61/2025/ND-CP providing detailed guidance on a number of articles of the Electricity Law regarding the Electricity Operation License (“Decree 61”).
We would like to present the key highlights of the above-mentioned Decrees as below:
1- Decree 56
1. Requirements for master plan inclusion:
The following power projects are exempt from the requirements for master plan inclusion:
• Self-production and self-consumption renewable and new energy sources either grid-connected at a low voltage level of ≤ 1kV or not connected at all
• Grid-connected power sources equipped with zero-export systems
• Power sources using excess heat generated from the manufacturing lines for self-consumption, whether connected or not connected to the national grid, as long as there is no sale of power output to the power system
• Power sources not connected to or selling power output to the national power system, except for the cases of power imports and exports (e.g., power sources only for private sale and purchase)
• Power grids of ≤ 1kV voltage level.
2. Bidding process for investor selection
• Applicable projects: Gas-to-power projects, coal-fired power projects, and renewable energy projects (including solar power, wind power, hydropower, and biomass power), which are included in the national or provincial power master plans and have ≥ 02 interested investors.
• Electricity consumer: Vietnam Electricity (EVN) (or its authorized units) and its five Power Corporations.
• Bidding dossier: Information included in the bidding documents, among others, includes the following:
• Electricity consumer.
• Pre-feasibility study report of the project.
• Draft Power Purchase Agreement (PPA).
• Pass-through mechanism and long-term minimum contract power output mechanism as investment guarantee mechanisms.
• Evaluation criteria for power industry development effectiveness:
• For the effectiveness assessment, the bidder evaluation score with regard to the level of power industry development will contribute between 80% and 90% of the score allocation percentage for determining the winner.
• Power tariff for projects with a tariff framework issued by the MOIT: The defined ceiling tariff for this case is required to be lower or equal to the ceiling tariff specified in the bidding dossier. The bidders are required to propose a power tariff lower or equal to the ceiling tariff for the power purchaser and the winning bidder to negotiate the PPA tariff.
• Contributions to the state budget for projects lacking a tariff framework from the MOIT: The minimum annual contribution to the State budget (regardless of the investor’s legal obligations to the State budget); the bidder must propose an amount that is higher or equal to the amount specified in the bidding dossier.
• PPA discussion and implementation:
• Approval of the feasibility study (FS) report: Within 15 months (for hydropower, gas-to-power, coal-fired, and wind power projects) or six months (for biomass power and solar power projects) from the execution date of the project contract.
• PPA negotiation and execution: According to the bidding outcomes and the sanctioned FS report, within three months from the day the successful bidder presents a valid application to the power buyer.
• Transitional provisions: Power projects already included in the master plan with a capacity scale included in the power supply network development plan at the provincial level under Decree 56 will continue to be implemented in accordance with the decisions approved by the competent authorities. These projects shall be updated in the provincial plan or the plan to implement the provincial plan when establishing or adjusting the provincial plan after this Decree takes effect.
2. Decree 57
Decree 57 replaces Decree No. 80/2024/ND-CP issued by the Government on 3 July 2024 on mechanisms for direct power trading between renewable energy generators and large electricity consumers (“Decree 80”) with the following notable provisions:
1. Models of direct power purchase: Similar to Decree 80, Decree 57 regulates (i) the private wire model where renewable energy generators sell electricity to large electricity consumers through a private power wire, and (ii) the grid-connected model where the sale and purchase of electricity are implemented via the grid.
2. Key changes: While Decree 57 replaces Decree 80 and inherits the mechanisms as set out in Decree 80, Decree 57 introduces the following amendments to enhance the enforceability of the DPPA mechanism:
• Scope of eligible renewable power sources: Biomass energy generators are added to Decree 57 as regulated renewable energy generators
• Large electricity consumers: While only industrial consumers are defined under Decree 80, businesses providing electric vehicle charging services are defined in Decree 57 as one type of large electricity consumers.
• Participation conditions:
• For large electricity consumers who have been using electricity for 12 months or more: The average overall electricity usage over the past 12 months (calculated based on the total electricity acquired from a Power Corporation or its authorized entities) cannot be less than the minimum electricity consumption threshold for large electricity users as outlined in the regulations governing the operation of the competitive electricity market issued by the Ministry of Industry and Trade (“MOIT”).
• For large electricity consumers who have been using electricity for less than 12 months: The average overall electricity usage is determined by the projected electricity demand acquired from a Power Corporation (or its authorized entities) and must meet or exceed the minimum consumption threshold for large electricity consumers as outlined in the regulations governing the competitive wholesale electricity market established by the MOIT.
• Limit on surplus power from rooftop solar: Surplus electricity from renewable generators with rooftop solar systems selling directly to major electricity users must not surpass 20% of the total electricity produced. This surplus electricity is also determined at the average market electricity price from the prior year, as reported by the electricity system and market operator. It must not go beyond the highest cost of the ground-mounted solar energy pricing structure
• Pricing framework: As for the private wire model, the selling price of electricity must not exceed the maximum price within the price framework. Similarly, the surplus electricity output from renewable energy generation units sold to Vietnam Electricity Group, Power Corporations, or Electricity Companies shall have its output and selling price agreed upon by both parties but must not exceed the maximum price level within the price framework for the corresponding type of power source.
3. Decree 58
Decree 58 replaces Decree No. 135/2024/ND-CP issued by the Government on 22 October 2024 on policies encouraging the development of self-production and self-consumption rooftop solar power (“Decree 135”) and introduces the following provisions:
1. Incentives provided for new energy projects:
• Exemption from sea area usage fees during the basic construction period but not exceeding 03 years from the date of commencement of construction. 50% reduction in sea area usage fees for a period of 09 years after the exemption period of the basic construction period;
• Exemption from land use fees and land rent during the basic construction period but not exceeding 03 years from the date of commencement of construction. After the exemption period of the basic construction period, the exemption and reduction of land use fees and land rent shall be implemented in accordance with the provisions of law on investment and land;
• The minimum long-term contracted electricity output is 70% within the loan principal repayment period but not exceeding 12 years unless the investor and the electricity buyer have another agreement. This mechanism shall not be applied in cases where the project fails to generate the minimum committed output due to reasons from the project side or due to load demand or technical conditions of the power system that cannot consume all the output;
2. New energy projects qualified for incentives:
• New energy projects produced from 100% green hydrogen, 100% green ammonia, or 100% mixture of green hydrogen and green ammonia;
• Projects supplying electricity to the national power system;
• The first project for each type of new energy.
3. Mechanisms and policies for self-production and self-consumption rooftop solar (“RTS”) power projects: Similar to Decree 135, Decree 58 provides two models for RTS power projects where developers can opt to either connect or not to connect their RTS power system to the grid. In the case of connection to the grid, no more than 20% of the RTS power system’s installed capacity may be sold to Vietnam Electricity (EVN) in exchange for the surplus power produced.
4. Development of offshore wind power projects:
• Applicable projects: Offshore wind power projects with in-principle investment policy approval issued by competent authorities before 1 January 2031.
• Conditions applied to foreign investors:
• Experience: Foreign investors must have at least invested and developed one offshore wind power project that is operating and generating power in Vietnam or elsewhere;
• Financial capability: Foreign investors must have their capital in the project accounting for at least 15% of the project’s total estimated investment capital, and their equity ratio on the capital contribution to the project being at least 20%;
• Participation of domestic enterprises: Domestic enterprises must hold at least 5% of the charter capital or total voting shares in the economic organization implementing the offshore wind power project. The domestic enterprises can be State-owned enterprises or enterprises in which a State-owned enterprise with 100% of the charter capital holds more than 50% of the charter capital or total voting shares. Additionally, for offshore wind power projects that export electricity without using the national power system, the domestic enterprises must hold more than 50% of the charter capital;
• Authorities’ consensus: Foreign investors must obtain written consensus from the Ministry of National Defense, the Ministry of Public Security, and the Ministry of Foreign Affairs; and
• Commitment to using domestic resources: They must commit to using domestic human resources, goods, and services from domestic suppliers, ensuring fair competition in terms of price, quality, progress, and availability.
4. Decree 61
Decree 61 replaces Decree No. 137/2013/ND-CP issued by the Government on 21 October 2013 providing guidance for the Electricity Law 2004, as amended and supplemented by Decree No. 08/2018/ND-CP dated 15 January 2018 and Decree No. 17/2020/ND-CP dated 5 February 2020 (“Decree 137”). Generally, Decree 61 inherits the relevant provisions of Decree 137 on the Electricity Operation License and the procedures with respect to the Electricity Operation License. Decree 61 also provides provisions to promote renewable energy sources and to align with the Electricity Law. Accordingly, according to Decree 61, the following projects are exempt from the requirements of an Electricity Operation License:
• Power projects for self-use, not selling electricity to other organizations or individuals:
a) No capacity scale limit for projects not connected to the national power system;
b) Installed capacity under 30 MW for projects connected to the national power system.
• Projects with installed capacity under 01 MW for power projects selling electricity to other organizations or individuals are exempted from electricity operation licenses in the power generation sector.
• Electricity businesses in rural, mountainous, border, and island areas that buy electricity with a capacity of less than 100 kVA from the distribution grid to sell electricity directly to electricity customers in rural, mountainous, border, and island areas are exempted from electricity retail licenses.
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Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if you have any questions on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.