Electricity is the largest operating cost of a charging station, and the first question for an investor is which purchasing channel applies: a standard retail contract with the power utility, or the direct power purchase agreement (DPPA) mechanism with a renewable generator. The answer turns on the size of the load, because DPPA is open only to large power users under Decree 80/2024/ND-CP.
Legal basis
- Decree 80/2024/ND-CP on the direct power purchase mechanism between renewable generators and large power users (DPPA); Clause 12, Article 3 defines a large power user by an average consumption threshold of 200,000 kWh per month.
- Law on Electricity 61/2024/QH15 on power purchase contracts, electricity pricing and the power market.
- The retail electricity tariff issued by the Ministry of Industry and Trade under the Government price framework; charging stations fall in the commercial and service retail group.
The default channel: a retail contract with the utility
Most charging stations in Vietnam consume far less per month than the large-user threshold, so the practical channel is a retail power purchase contract with the local power company (under EVN) or the retail supplier inside the industrial park or mall hosting the station. The applicable price is the retail tariff for commercial and service purposes, differentiated by voltage level and by peak, normal and off-peak hours. Investors should note that electricity is an input to the charging service: the station margin sits in the charging service fee charged to drivers, not in reselling electricity, because reselling power outside the signed retail contract can be treated as selling electricity for an improper purpose.
DPPA: reserved for stations meeting the large-user threshold
The DPPA mechanism under Decree 80/2024/ND-CP lets a large power user buy directly from a renewable generator in two models: through the national grid (with a contract for differences and market-based settlement) or through a private transmission line invested by the parties. The gateway condition is large-user status under Clause 12, Article 3, at an average of 200,000 kWh per month. A single charging station rarely reaches that level; only large charging networks, bus and truck depots running continuously, or charging clusters combined with a factory or logistics hub stand a chance of qualifying. A qualifying operator signs with the renewable generator while still paying regulated transmission, distribution and market service charges. DPPA is therefore an option for large operators locking in long-term renewable prices and group ESG commitments, not the default channel for an ordinary commercial station.
Is there a preferential tariff for charging stations?
The current retail tariff contains no preferential rate group for EV charging stations: a station pays the commercial and service rate like any other commercial facility. Incentives for charging infrastructure currently sit in other channels, such as investment incentives, local infrastructure support and the green transport transition roadmap, rather than in discounted input electricity. A financial model for a charging station must therefore use the current commercial tariff and periodic tariff adjustment scenarios instead of assuming a discounted rate.
Recommendations for charging investors
Before signing a site lease, investors should work with the local power company to confirm supply capacity, the connection voltage level and the rate group for the planned site, and estimate monthly consumption to see whether the system approaches the large-user threshold. Where total consumption across a factory, warehouse and depot reaches the threshold, DPPA should be assessed alongside the retail contract, because the two channels carry very different long-term cost and price risk profiles.
Frequently asked questions
Who sells power to a charging station, and under which tariff?
The station buys from the local power company (under EVN) or the retail supplier of the area hosting the station, under a retail power purchase contract. The applicable price is the retail tariff for commercial and service purposes issued by the Ministry of Industry and Trade, differentiated by voltage level and peak, normal and off-peak hours.
Can a charging station sign a DPPA for renewable power?
Only if the charging system meets the large power user threshold in Clause 12, Article 3 of Decree 80/2024/ND-CP (average consumption from 200,000 kWh per month). An ordinary station below that threshold is outside the DPPA scope and must buy retail power from the utility.
Does electricity for charging stations enjoy any discount?
There is no preferential retail tariff for charging stations; a station pays the commercial and service rate like other commercial facilities. Support for charging infrastructure comes through investment incentives and local policies, not through the input electricity price.
This article has been quality-reviewed by the FLAW AI Legal Council