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04/12/2025
The revised Electricity Law, after being approved by the National Assembly, is expected to address current challenges in the power sector, ensure electricity security, support the Net Zero target, and promote sustainable development of Viet Nam’s electricity industry.
Vietnam News Agency – February 1, 2025
From February 1, 2025, the Electricity Law officially takes effect with 9 chapters and 81 articles.
The Law provides regulations on:
Power development planning
Investment and construction of electricity projects
Development of renewable and new energy electricity
Electricity operation permits
Competitive electricity markets and power trading
National power system dispatch and operation
Protection of electricity infrastructure and safety in the electricity sector
Responsibilities, rights, and obligations of agencies, organizations, and individuals in electricity activities and electricity use
State management of the electricity sector
Once implemented, the revised Electricity Law will help resolve longstanding bottlenecks in the power sector, guarantee electricity security, support Viet Nam’s Net Zero goals, and contribute to the sustainable and efficient development of the power industry, ensuring sufficient and stable electricity supply for socio-economic development and everyday life.
Regulations on renewable and new energy electricity are a brand-new component of the 2024 revised Electricity Law.
The Law sets out provisions on:
General rules for developing renewable and new energy electricity
Basic surveys of renewable and new energy resources
Self-produced, self-consumed renewable and new energy electricity
Upgrading and replacing equipment at renewable and new energy power plants
Decommissioning of renewable and new energy power projects
It also provides general regulations on offshore wind development, including site surveys, approval of investment guidelines, and investor selection for offshore wind power projects.
Ensuring power supply security and system safety
Developing projects in regions with renewable and new energy potential, in alignment with grid infrastructure to avoid waste from transmission bottlenecks
Efficient use of energy sources and reliable electricity supply
Minimizing technical losses and reducing long-distance transmission load
Meeting environmental requirements and aligning with local socio-economic conditions
The Law also emphasizes harmonized planning for training and developing human resources in renewable and new energy industries, moving toward technological self-reliance in suitable areas.
Priority is given to efficient exploitation of renewable and new energy sources to ensure sustainable natural resource use, national energy security, and electricity export opportunities.
The Law also encourages the development of:
Rooftop solar power
Floating solar on reservoirs and water surfaces, especially on existing hydropower reservoirs where no new transmission lines are required
Offshore wind power, in parallel with national defense, security, and maritime sovereignty protection
A notable highlight is Chapter V, which provides clear regulations on building a competitive electricity market and power trading activities.
Key contract terms include:
Contracted electricity volume
Forward contract price determined through negotiation between buyer and seller
Reference price based on the spot electricity market price published according to competitive market rules
Both parties must settle differences between the contracted price and the reference price for the contracted electricity volume.
The option may be a right to buy or a right to sell, depending on agreement
Contracted volume, price, and validity period are all determined by negotiation
The buyer may choose whether to exercise the option within the contract period
The seller must fulfill the agreed electricity sale or purchase obligations when the option is exercised
Option premiums are determined based on supply and demand in the forward electricity market
Article 41 specifies electricity trading across different levels of the competitive electricity market.
Power generation units
Electricity wholesale units
Electricity retail units
End-use customers
Bilateral contracts
Spot market transactions through the market operator
Forward, options, and futures contracts
Spot market prices are set for each trading cycle and published by the market operator.
Electricity retail tariffs are determined based on state pricing policies, average retail tariff frameworks, tariff adjustment mechanisms, and tariff structures tailored to different customer groups, including:
Industrial
Commercial
Public service
Residential
Time-of-use tariffs (peak, off-peak, normal hours) apply to eligible customers. For residential consumers not participating in the competitive market, a progressive tiered tariff remains in place.
The revised 2024 Electricity Law marks a significant step toward completing the legal framework for Viet Nam’s electricity industry. With its new provisions, the Law supports sustainable development, international integration, and competitiveness in the modern energy landscape.
Diệp Trương
Tags: Electricity Law, Power Sector
Source: VNA
