Circular No. 09/2025/TT-BCT stipulates the dossier, procedure, and process for determining and approving the framework price for power generation; and constructing and approving the framework price for imported electricity.

CIRCULAR

Regulations on the dossier, procedure, and method for determining and approving the framework price for power generation; regulations on the dossier, procedure, and method for constructing and approving the framework price for imported electricity.

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Pursuant to the Electricity Law dated November 30, 2024;

Based on Decree No. 96/2022/NĐ-CP dated November 29, 2022 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade; Decree No. 105/2024/NĐ-CP dated August 1, 2024 amending and supplementing certain articles of Decree No. 96/2022/NĐ-CP and Decree No. 26/2018/NĐ-CP dated February 28, 2018 of the Government on the Charter of Organization and Operation of Vietnam Electricity Corporation;

At the proposal of the Director of the Electricity Regulatory Authority;

The Minister of Industry and Trade issues this Circular to regulate the dossier, procedure, and method for determining and approving the framework price for power generation; and the dossier, procedure, and method for constructing and approving the framework price for imported electricity.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Thông tư này quy định chi tiết khoản 4 Điều 38 Luật Thủy sản số 18/2017/QH14 đã được sửa đổi, bổ sung tại điểm c khoản 21 Điều 14 Luật số 146/2025/QH15.

This Circular provides detailed regulations on certain provisions of the Electricity Law No. 61/2024/QH15, including:

a) Clause 5, Article 46, which stipulates the dossier, procedure, and method for constructing and approving the framework price for imported electricity, and the method for establishing the framework price for imported electricity;

b) Clause 3, Article 51 of the Electricity Law, which stipulates the dossier, procedure, and method for determining the framework price for power generation; and the approval of the framework price for power generation constructed and submitted by power units.

2. This Circular applies to the following entities:

a) Agencies, organizations, and individuals owning power plants operating within the territory of the Socialist Republic of Vietnam that are connected to the national power grid, excluding strategic multi-purpose hydropower plants, small renewable energy power plants applying avoided cost tariffs, power plants and generating units providing ancillary services; power plants applying electricity purchase price mechanisms as stipulated in relevant documents;

b) Organizations within the country engaged in importing electricity from organizations and individuals within the territory of the Lao People's Democratic Republic (hereinafter referred to as Laos) and the People's Republic of China (hereinafter referred to as China);

c) Vietnam Electricity Corporation;

d) Other organizations and individuals related thereto.

Article 2. Interpretation of Terms

In this Circular, the following terms shall be understood as follows:

1. Calculation parameters are the calculation parameters for the framework price for power generation collected by power units when building the framework price based on the feasibility study report for investment construction projects of power plants approved, and the basic design reviewed within 48 months immediately preceding the calculation period for coal-fired and gas-fired power plants, and within 24 months immediately preceding the calculation period for non-coal-fired and non-gas-fired power plants.

2. System Operator and Market Operator is the entity performing the function of the National Power System Dispatching Unit and the Market Operations Management Unit as stipulated in the Electricity Law (currently the State-owned Joint Stock Company for National Power System Operation and Electricity Market Management).

3. Pumped storage hydropower plant is a hydropower plant using water storage systems at different elevation levels to store energy and generate electricity, where water is pumped from low-elevation water storage areas to higher-elevation water storage areas during non-generation periods to store energy.

4. Floating solar power plant is a solar power plant connected to the national power grid, with photovoltaic panels installed on floating structures on water surfaces.

5. Ground-mounted solar power plant is a solar power plant connected to the national power grid, except for those specified in Clause 4 of this Article.

6. Onshore wind power plant is a wind power plant connected to the national power grid, except for those specified in Clause 5 of Article 20 of the Electricity Law.

Chapter II

METHOD FOR DETERMINING THE FRAMEWORK PRICE FOR POWER GENERATION

1. The electricity generation price framework has a range between the minimum price (0 VND/kWh) and the maximum price.

2. The maximum price is the electricity generation price corresponding to each type of power plant (excluding hydroelectric power plants) determined according to the methods prescribed in Articles 4, 5, 6, and 7 of this Circular.

3. For hydroelectric power plants, the maximum price is established based on the annual avoidable cost tariff table according to the method prescribed in Article 8 of this Circular.

4. The electricity generation price framework for solar power plants is established based on the average annual radiation intensity of three regions: Northern, Central, and Southern regions.

5. In cases where there are no approved feasibility study reports for investment construction projects or reviewed basic design documents for certain types of power plants, the parameters for calculating the electricity generation price framework according to the methods prescribed in this Circular are determined based on reference to consulting organizations.

6. For renewable energy power plants that use combined electricity storage systems, if the storage system only consumes electricity generated from these renewable energy power plants during charging cycles, the total investment cost for calculating the electricity generation price framework includes the investment costs of the storage system components.

Article 4. Method for Determining the Electricity Generation Price

The electricity generation price (VND/kWh) is determined according to the following formula:

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_of = FC + FOMC + VC

Where:

Article 5. Method for Determining the Average Fixed Cost

1. The average fixed cost FC (VND/kWh) is a component for recovering investment costs and is determined according to the following formula:

(tonnes CO

2. The investment capital cost converted evenly annually TC is calculated using the following formula:

Where:

SĐT: Calculated investment cost per unit capacity is determined according to the provisions of Clause 4 of this Article (VND/kW or VND/kWp); kWp is the unit of measurement for the peak power output of solar photovoltaic panels under standard conditions;

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.}: Calculated capacity (kW or kWp) is specified in Clause 3 of this Article;

n: Economic life of the power plant is specified in the Appendix issued together with this Circular (years);

i: Financial discount rate of the power plant is determined according to the provisions of Clause 5 of this Article (%).

3. Calculated capacity is the capacity of the power plant selected from the set of calculation parameters based on implementing the National Power Development Plan. The calculated capacity is converted to the point of electricity delivery and receipt with the electricity buyer through the self-consumption ratio and the transformer step-up loss of the power plant, transmission line losses (if any).

4. Calculated investment cost per unit capacity is the investment cost for 1 kW (or 1 kWp) of power plant capacity, including the total investment amount (only including production-related items) effective at the time of calculating the electricity generation price framework, updated with foreign currency exchange rates at the time of calculation, determined according to one of the following bases:

a) The investment cost per unit capacity of the power plant selected in Clause 3 of this Article;

b) The average investment cost per unit capacity of power plants of the same technology type based on the set of calculation parameters.

If the calculated investment cost per unit capacity cannot be determined according to the options prescribed in points a and b of this clause, it is chosen based on actual data from negotiated power purchase contracts; or by referencing data from consulting organizations.

5. The financial discount rate i (%) applies to the weighted average cost of capital before tax and is determined according to the following formula:

Where:

D: Proportion of borrowed capital in the total investment amount specified in the Appendix of this Circular (%);

E: Proportion of equity capital in the total investment amount specified in the Appendix issued together with this Circular (%);

n: Economic life of the power plant specified in Clause 2 of this Article (years);

n_D: Average loan repayment period is 10 years;

F_{For coal-fired thermal power plants where the enterprise holds 100% of the registered capital and uses 100% of its own capital to invest in the project approved by the competent authority, E is determined as 100%;}: Borrowed capital interest rate is determined according to point a of this clause (%);

F_{Average loan repayment period is 10 years;}: Return on equity before tax is determined according to point b of this clause (%).

a) Borrowed capital interest rate r_{For coal-fired thermal power plants where the enterprise holds 100% of the registered capital and uses 100% of its own capital to invest in the project approved by the competent authority, E is determined as 100%;} is determined based on the total investment amount and the capital structure of the project according to the project approval decision of the competent state agency;

Where:

D_F: Proportion of foreign currency borrowed capital in the total borrowed capital specified in the Appendix issued together with this Circular (%);

D_D: Proportion of domestic currency borrowed capital in the total borrowed capital specified in the Appendix issued together with this Circular (%);

F_d,F: Foreign currency borrowed capital interest rate is determined as the average SOFR (Secured Overnight Financing Rate) for a term of 180 days (180 Days - Average) of the 36 months immediately preceding the first day of March, June, September, or December closest to the negotiation year published by the Fed (Website: www.newyorkfed.org) plus an average annual fee for arranging loans of 3%/year;

F_d,D: Domestic currency borrowed capital interest rate is determined as the average of the interest rate for a 12-month deposit in Vietnamese dong paid after maturity for individual customers on the first day of the 60 months immediately preceding the first day of March, June, September, or December closest to the pricing framework construction year of four commercial banks (Vietnam Joint Stock Commercial Bank for Foreign Trade, Vietnam Joint Stock Commercial Bank for Industry and Trade, Vietnam Joint Stock Commercial Bank for Investment and Development, Vietnam Agricultural and Rural Development Bank or their legitimate successors) plus an average annual service fee of 3%/year.

b) Return on equity before tax re (%) is determined according to the following formula:

Where:

F_e,pt: Return on equity after tax (%), determined as 12%;

The average corporate income tax rate for the power plant's economic life is determined according to the current regulations of the State (%), ensuring that the project benefits from corporate income tax incentives (if applicable).

6. Annual average electricity delivery E_bq (kWh) is determined as follows:

a) For thermal power plants, Ebq is determined by the following formula:

Where:

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.}: Calculated capacity as specified in Clause 3 of this Article;

d.1. Amount of taxable income in Vietnam:_max: Maximum capacity operating hours as specified in the Appendix attached to this Circular (hours);

signing and implementing Agreements_cs: Average capacity reduction ratio prescribed for the entire economic life of the power plant in the Appendix attached to this Circular (%).

For power plants not prescribed T_max in the Appendix attached to this Circular, T_max is determined based on the calculation parameters set, referring to data from consulting organizations (if necessary).

For power plants not prescribed K_cs in the Appendix attached to this Circular, K_cs is taken as 0 (zero).

b) For solar power plants, Ebq is determined by the following formula:

(tonnes CO

A: Total area of photovoltaic panels installed (m²) corresponding to calculated capacity;

H: Average annual radiation intensity corresponding to three regions: North, Central, and South (kWh/m²/year);

r: Photovoltaic panel conversion efficiency (%);

PR: Plant efficiency (%).

Parameters A, r, PR are determined based on one of the following sources: Calculation parameters for solar power plants; data from consulting organizations or actual operational data from existing solar power plants.

Parameter H corresponding to the Northern, Central, and Southern regions is determined based on information about basic surveys of renewable energy resources published and shared by authorized agencies according to the law. In the absence of such information, parameter H corresponding to the Northern, Central, and Southern regions is determined based on data from consulting organizations or the average annual radiation intensity of operational solar power plants.

c) For wind power plants, E_bq is determined as the multi-year average expected delivered electricity of 50% based on calculation parameters or by the following formula:

Where:

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.} : Calculated capacity as specified in Clause 3 of this Article (kW);

k_CF: Capacity factor (%) corresponding to the multi-year average expected delivered electricity of 50%; C

Parameters k_CF are determined based on one of the following sources: Calculation parameters; data from consulting organizations or actual operational data from power plants.

d) For pumped storage hydroelectric power plants, Ebq is designed based on the system's needs, the amount of water pumped into the reservoir as stated in the feasibility study report approved for projects. If it cannot be determined, Ebq is selected based on data from similar pumped storage hydroelectric power plants where Ebq has been identified.

Article 6. Method for Determining Variable Cost

1. Variable cost (VC) is a component for recovering fuel costs and other variable costs of power plants, determined by the following formula:

Where:

VC: Variable cost of the power plant (VND/kWh);

HR: Fuel consumption rate at 85% load level, determined based on the fuel consumption rate of the corresponding type of power plant in the calculation parameters or data from consulting organizations (kg/kWh or kJ/kWh or kcal/kWh or BTU/kWh);

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_nlc: Price of main fuel of the power plant (VND/kcal or VND/kJ or VND/BTU or VND/kg);

f: Percentage of start-up costs, auxiliary fuel-material costs, and other variable costs for power generation relative to the main fuel cost, as specified in the Appendix attached to this Circular (%).

For types of power plants not prescribed f in the Appendix attached to this Circular, f is taken as 0 (zero).

2. Main fuel price (P_nlc) determined as follows:

a) For coal-fired power plants and biomass power plants, Pnlc includes losses, operation fees, management fees, insurance (if any), and transportation fees;

b) For combined cycle gas turbine power plants using natural gas, P_nlc is the gas price at the wellhead including transportation costs to the power plant (if any);

c) For combined cycle gas turbine power plants using LNG, the main fuel price includes imported LNG prices, import taxes on LNG (if any), transportation costs of LNG to the regasification port warehouse, and storage, regasification, and distribution costs after regasification;

d) For waste-to-energy power plants (electricity produced from waste), P_nlc includes subsidies from waste collection, transportation, and treatment costs according to environmental protection laws (if any).

3. For hydropower plants (excluding pumped storage hydropower plants), solar power plants, and wind power plants: variable cost is taken as 0 (zero).

4. For pumped storage hydropower plants, variable cost is a component for recovering water storage costs, determined based on the electricity consumption during the water storage cycle, the retail electricity price for off-peak hours applied to industries as stipulated, and the cost of purchasing reactive power capacity.

In which, the electricity consumption during the water storage cycle is determined based on the feasibility study report for construction investment projects approved for projects. If it cannot be determined, the electricity consumption during the water storage cycle is selected based on data from similar pumped storage hydropower plants where this level of production has been identified.

Article 7. Method for Determining Fixed Operation and Maintenance Cost Price

Clause 1. The fixed operation and maintenance cost price FOMC (VND/kWh) is a component to recover large repair costs, labor costs, and other annual expenses, determined according to the following formula:

Where:

Economic life of the power plant as specified in the Appendix attached to this Circular (years)._FOMC: Total fixed operation and maintenance cost of the power plant as prescribed in Clause 2 of this Article (VND);

E_bq: Average annual electricity generation and delivery volume of the power plant as prescribed in Clause 6 of Article 5 of this Circular (kWh).

Clause 2. The total fixed operation and maintenance cost (VND) of the power plant is determined according to the following formula:

Where:

SĐT: Investment cost of the power plant as prescribed in Clause 4 of Article 5 of this Circular (VND/kW);

"5. The pre-tax weighted average cost of capital i (%) is determined according to the formula below:_t: Calculated capacity as prescribed in Clause 3 of Article 5 of this Circular;

k_O&M: Proportion of fixed operation and maintenance cost in investment cost as prescribed in the Appendix to this Circular (%).

For types of power plants not specified with kO&M in the Appendix issued together with this Circular, k_O&M shall be determined based on reference data from consulting organizations or actual operational data from similar projects that have been implemented.

Article 8. Method for Determining the Maximum Price Level of the Generation Tariff Framework for Hydro Power Plants

The maximum price level of hydro power plants PTĐ (VND/kWh) is determined according to the following formula:

Where:

ACT_bq,j: Average avoided cost rate of the Northern, Central, and Southern regions as per the avoided cost tariff schedule issued annually by the Ministry of Industry and Trade;

organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular._{9. Travel distance is the distance traveled without using mechanical means (cars, motorcycles, motorboats) to reach locations for implementing technical forest management measures and patrolling to protect forests.}: Proportion of seasonal and hourly electricity production in the year as prescribed in the Appendix issued together with this Circular (%).

Chapter III

METHOD FOR DETERMINING THE IMPORT ELECTRICITY PRICE FRAMEWORK FROM LAO AND CHINA

Article 9. Method for Determining the Import Electricity Price Framework

The import electricity price framework is the maximum price level (price ceiling) converted according to the foreign exchange rate at the time of establishing the price framework and is applied to each specific country and determined as follows:

Clause 1. In cases where there are provisions in international treaties to which Vietnam is a member (Agreement between two Governments), the maximum price level of the import electricity price framework is determined according to the provisions of such Agreement.

Clause 2. For the import of electricity from power plants, the maximum price level is equal to the average of the average avoided cost rates of the Northern, Central, and Southern regions based on the results of the calculation of the avoided cost tariff schedule conducted by the system operator and national electricity market, submitted to the competent state management agency under the Ministry of Industry and Trade according to the method and principles for determining and applying the avoided cost tariff schedule for small renewable energy power plants issued by the Minister of Industry and Trade.

Clause 3. For the import of electricity through the national grid (not purchasing electricity from power plants), the maximum price level is the marginal cost based on the average electricity volume of the base scenario in the most recent National Power Development Plan approved by the National Power Development Planning Review Council.

Chapter IV

 DOCUMENTS, PROCEDURES, APPROVAL OF GENERATION PRICING FRAMEWORK AND IMPORT ELECTRICITY PRICE FRAMEWORK GENERATION AND FRAMEWORK FOR IMPORTED ELECTRICITY PRICES

Article 10. Documents, Procedures, Approval of Generation Pricing Framework

Clause 1. Within fifteen days from the date of approval of the Feasibility Study Report for the construction of the power plant and the review of the basic design, the investors of these power plants are responsible for providing the Feasibility Study Report for the construction and the basic design to the Vietnam Electricity Corporation.

Clause 2. By November 1st each year, the Vietnam Electricity Corporation is responsible for:

a) Proposing a set of calculation parameters and selecting calculation parameters for the generation pricing framework for various types of power plants;

b) Calculating or hiring consultants to select a set of calculation parameters and calculate the maximum price level of the generation pricing framework for various types of power plants according to the provisions of Chapter II of this Circular.

c) Preparing the calculation dossier for the generation pricing framework in accordance with Article 12 of this Circular and submitting it to the competent state management agency for electricity for review.

Clause 3. Within five working days from the date of receipt of the generation pricing framework calculation dossier as stipulated in Clause 2 of this Article, the competent state management agency for electricity is responsible for checking the completeness and validity of the dossier submitted for approval. If necessary, the state management agency for electricity under the Ministry of Industry and Trade may issue a written request to the Vietnam Electricity Corporation to amend, supplement, or provide explanations regarding the contents of the dossier. The Vietnam Electricity Corporation must submit a written report explaining the contents of the dossier according to the request within the latest fifteen days from the date of receipt of the amendment, supplementation, or clarification request from the state management agency for electricity under the Ministry of Industry and Trade.

Clause 4. Within twenty-five days from the date of receipt of a valid application for approval of the generation pricing framework, the state management agency for electricity under the Ministry of Industry and Trade is responsible for reviewing the generation pricing framework and submitting it to the Minister of Industry and Trade for approval of the generation pricing framework. In case the generation pricing framework for the next year has not yet been announced, it is permissible to temporarily apply the generation pricing framework of the previous year.

Article 11. Establishment, review, and approval of the import electricity price framework

1. The entity operating the national power system and electricity market shall be responsible for establishing the annual avoided cost tariff table and submitting it to the State management agency under the Ministry of Industry and Trade for review according to the method and principles for determining and applying the avoided cost tariff table for small renewable energy power plants issued by the Minister of Industry and Trade.

2. Within twenty-five days from the date of receiving the avoided cost tariff table submitted by the entity operating the national power system and electricity market, the State management agency under the Ministry of Industry and Trade shall organize the review and submit to the Minister of Industry and Trade for approval of the import electricity price framework in accordance with Clause 2, Article 9 of this Circular. In case the import electricity price framework for the following year has not been announced, it is permitted to temporarily apply the import electricity price framework of the previous year.

Article 12. Documents for requesting approval of the generation electricity price framework

1. The documents for requesting approval include:

a) A request for review and approval of the generation electricity price framework;

b) Tables of parameters and calculation documents for the generation electricity price framework in accordance with Articles 4, 5, 6, 7, and 8 of this Circular;

c) Relevant documents related to the parameters for calculating the maximum price level of the generation electricity price framework.

2. The documents shall be prepared in paper form or in electronic message format with equivalent legal effect as stipulated by law. The Vietnam Electricity Corporation shall directly send one set of documents in electronic message format and one set of documents in paper form (if necessary) to the State management agency under the Ministry of Industry and Trade.

Chapter V

IMPLEMENTING PROVISIONS

Article 13. Implementation Organization

1. The State management agency under the Ministry of Industry and Trade shall be responsible for:

a) Reviewing and submitting to the Minister of Industry and Trade for approval of the generation electricity price framework;

b) Reviewing and submitting to the Minister of Industry and Trade for approval of the import electricity price framework.

2. The Vietnam Electricity Corporation shall be responsible for preparing the annual calculation documents for the generation electricity price framework in accordance with Articles 10 and 12 of this Circular.

3. The entity operating the national power system and electricity market shall be responsible for annually establishing the avoided cost tariff table in accordance with Article 11 of this Circular.

Article 14. Transitional Provisions

For organizations and individuals participating in the implementation of investment in solar power plants or parts thereof, wind power plants that have signed power purchase agreements with the Vietnam Electricity Corporation but do not meet the conditions for applying the electricity purchase price as prescribed in the decisions of the Prime Minister before the effective date of this Circular, the maximum price level of the generation electricity price framework for each type is defined as follows:

Article 15. Effective Date

1. This Circular takes effect from February 1, 2025.

2. Abolish the following Circulars:

a) Circular No. 57/2014/TT-BCT dated December 19, 2014, issued by the Minister of Industry and Trade, prescribing the methods and procedures for establishing and promulgating the generation electricity price framework;

b) Circular No. 31/2022/TT-BCT dated November 8, 2022, issued by the Minister of Industry and Trade, amending and supplementing some articles of Circular No. 57/2014/TT-BCT dated December 19, 2014, prescribing the methods and procedures for establishing and promulgating the generation electricity price framework and Circular No. 57/2020/TT-BCT dated December 31, 2020, issued by the Minister of Industry and Trade, prescribing the method for determining the electricity generation price and power purchase contracts;

c) Circular No. 19/2023/TT-BCT dated November 1, 2023, issued by the Minister of Industry and Trade, prescribing the method for establishing the generation electricity price framework applicable to solar power plants and wind power plants;

d) Circular No. 20/2024/TT-BCT dated October 10, 2024, issued by the Minister of Industry and Trade, prescribing the method for establishing the generation electricity price framework for solid waste power plants and biomass power plants;

đ) Circular No. 15/2022/TT-BCT dated October 3, 2022, issued by the Minister of Industry and Trade, prescribing the method for establishing the generation electricity price framework for transitional solar power plants and wind power plants.

3. During the implementation process, if any difficulties arise, organizations and individuals shall report them to the Ministry of Industry and Trade for examination and amendment to ensure compliance.