Three layers of renewable power pricing in Vietnam
The electricity price a foreign investor receives from a solar or wind project in Vietnam is shaped by three successive layers: (1) historical FIT preferential prices; (2) transitional prices for transitional projects; and (3) the pricing mechanism under the Law on Electricity 2024 and the new generation price bracket. Understanding each layer helps investors accurately assess project cash flows.
Layer 1: FIT prices — historical context
During 2017–2020, Vietnam applied Feed-in Tariff (FIT) preferential prices for solar and wind power to encourage investment, with attractive fixed prices for 20 years. The mechanism triggered a strong investment wave but left consequences: many projects enjoyed FIT prices without completing acceptance procedures as required.
Important note: FIT is a mechanism of the past, applicable only to projects meeting the conditions at that time. New investors cannot expect FIT prices for projects developed today.
Layer 2: Transitional prices for transitional projects
For solar and wind projects that were invested in but did not reach operation in time for FIT (transitional projects), the Ministry of Industry and Trade issued a transitional generation price bracket in Circular 15/2022/TT-BCT (bracket methodology) and Decision 21/QD-BCT dated 7 January 2023 (specific bracket, excluding VAT):
| Type | Price cap (VND/kWh, excl. VAT) |
|---|---|
| Ground-mounted solar | 1,184.90 |
| Floating solar | 1,508.27 |
| Onshore wind | 1,587.12 |
| Offshore wind | 1,815.95 |
The power purchase price of a transitional project is set through negotiation between the project owner and the power purchaser within this bracket.
Layer 3: Pricing under the Law on Electricity 2024
The Law on Electricity No. 61/2024/QH15 (effective 1 February 2025) establishes electricity pricing toward a state-regulated market:
- Power trading prices agreed by the parties within the state-regulated generation price bracket and retail tariff structure; ensuring openness, transparency, equality and non-discrimination among power units.
- Forward power contracts (Article 45): contract prices set through buyer-seller negotiation; the reference price is the spot market price.
- New generation price bracket: the methodology for the generation price bracket is set out in consolidated document 57/VBHN-BCT of 2025 (effective 1 February 2025, repealing old bracket circulars including Circular 15/2022/TT-BCT).
- DPPA: under Decree 57/2025/ND-CP dated 3 March 2025, direct power trading prices between renewable generators and large consumers are agreed by the parties — opening a flexible pricing channel beyond the traditional bracket.
Live development: PPA price renegotiation (October 2026)
In October 2026, the Electricity Power Trading Company (EPTC, under EVN) asked the owners of 172 renewable power projects to renegotiate their PPAs for periods when the projects had not yet obtained approval of construction acceptance results (CCA), at prices not exceeding the transitional caps above. The move follows the Government Inspectorate conclusion (Notice 3116 dated 25 December 2023: plants without approved acceptance results were not entitled to FIT prices) and Government Resolution 233 dated 10 December 2024 on resolving bottlenecks.
The lesson for foreign investors: approval of acceptance results (CCA) is tightly tied to the right to enjoy power prices. A project that completes construction but is late on acceptance may face significantly lower prices for the entire violation period. When acquiring existing projects, carefully verify CCA status and PPA price clauses.
Recommendations for pricing due diligence
- Classify the project: new project (new bracket + negotiation), transitional project, or project under price renegotiation.
- Assess price scenarios: bracket caps, direct sale (DPPA) potential to large customers at negotiated prices.
- Review acceptance conditions and CCA timelines from the due diligence stage.
- Design PPA price clauses with adjustment mechanisms for pricing-policy changes.
This article was prepared with review by the FLAW AI Legal Council and is pending QA Council review before submission to the owner for approval. It is not the opinion of a licensed human lawyer and does not replace legal advice for a specific case.