Chương I: Quy định chung

DECREE

ELABORATING THE LAW ON ELECTRICITY PERTAINING TO ELECTRICITY DEVELOPMENT, ELECTRICAL SUPPLY GRID DEVELOPMENT PLAN, ELECTRICITY PLAN INVESTMENT AND DEVELOPMENT, BIDDING FOR INVESTOR SELECTION OF ELECTRICITY BUSINESS INVESTMENT PROJECT

Pursuant to the Law on Government Organization dated February 18, 2025;

Pursuant to the Law on Local Government Organization dated February 19, 2025;

Pursuant to the Law on Electricity dated November 30, 2024;

Pursuant to the Law on Bidding dated June 23, 2023;

Pursuant to the Law on Investment dated June 17, 2020;

Pursuant to the Law on Information Technology dated August 02, 2023;

Pursuant to the Law on Electronic Transactions dated June 22, 2023;

Pursuant to the Law on Information Access dated April 6, 2016;

Pursuant to the Law on Cyberinformation Safety dated November 19, 2015;

Pursuant to the Law on Cybersecurity dated June 12 of 2018;

Pursuant to the Law on Planning dated November 24, 2017 amended by the Law on Medical Examination and Treatment dated January 9, 2023; the Law on Prices dated June 19, 2023; the Law on Water Resources dated November 27, 2023; the Law on Land dated January 18, 2024; the Law on Road dated June 27, 2024; the Law on National Defense and Security Industry and Industrial Mobilization dated June 27, 2024; the Law on amendment to the Law on Land, the Law on Residence, the Law on Real Estate Business, and Law on Credit institutions dated June 29, 2024; the Law on amendment to the Law on Planning, the Law on Investment, the Law on Public-Private Partnership Investment, and the Law on Bidding dated November 29, 2024;

At request of the Minister of Industry and Trade;

The Government promulgates Decree elaborating the Law on Electricity pertaining to electricity development, electrical supply grid development plan, electricity plan investment and development, bidding for investor selection of electricity business investment project.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

This Decree elaborates and provide guidelines for Clause 3 Article 8, Clause 6 Article 10, Clause 1 Article 12, Clause 2 Article 12, Clause 4 Article 12, Clause 4 Article 13, Clause 2 Article 14, Clause 5 Article 17, Clause 1 Article 19, Clause 3 Article 19, and Clause 1 Article 81 of the Law on Electricity.

Article 2. Regulated entities

This Decree applies to agencies, organizations, and individuals engaging in or related to electricity development planning and investment.

Article 3. Definitions

In this Decree, terms below are construed as follows:

1. The Buyer means Vietnam Electricity (or authorized representatives thereof), Northern Power Corporation, Central Power Corporation, Southern Power Corporation, Hanoi City Power Corporation, Ho Chi Minh City Power Corporation, major electricity users, other electricity buyers according to regulations of electricity market.

2. Electric utility/electricity seller (hereinafter referred to as “the Seller”) means an organization or individual that, pursuant to Vietnam’s domestic laws, possesses power plant or power plants.

3. Gas-fired thermal power project means an investment project for construction of gas-fired thermal power plant which uses domestically produced natural gas or liquefied natural gas (LNG).

4. Coal-fired thermal power project means an investment project for construction of thermal power plant which uses domestically produced coal, imported coal, or a combination of domestically produced coal and imported coal.

5. Expression of Interest (EOI) requester means an agency, entity affiliated to the Ministry of Industry and Trade; a specialized agency, agency or unit affiliated to People's Committee of province or central-affiliated city (hereinafter referred to as “provincial People’s Committee”), agency or unit affiliated to an economic zone management board (for investment projects in economic zones); or district-level People's Committee that is assigned to carry out procedures for invitation for EOIs.

6. Competent authority in accordance with bidding laws means an authority that approves investment guidelines in accordance with investment laws or an authority that conducts bidding for investor selection. In respect of project of which investment guidelines are to be approved by the National Assembly or Prime Minister, competent authority in accordance with bidding laws shall be the authority that conducts bidding for investor selection.

7. Authority making decision to conduct bidding for investor selection of electricity business investment project includes the Ministry of Industry and Trade, provincial People's Committees, and economic zone management board.

8. Liquefied natural gas (LNG) means a hydrocarbon product in liquid form deriving from natural gas and consisting primarily of methane (CH₄).

9. Regasification means conversion of LNG in liquid state to gas state.

Chapter II

ELECTRICITY DEVELOPMENT PLANNING AND ELECTRICAL SUPPLY GRID DEVELOPMENT PLAN

Article 4. Power source capacity, voltage of electrical grid under electricity development planning and electrical supply grid development plan in provincial planning

1. Power source capacity and voltage of electrical grid under electricity development planning shall be determined as follows:

a) Total installation capacity of power source of national electrical system conforms to composition of individual power source type, including storage system and excluding storage system doubled as renewable energy sources; total installation capacity conforms to composition of individual local power source type;

b) Power source of which installation capacity is 50 MW or higher and connected electrical grid;

c) Power source of which installation capacity is below 50MW and connected electrical grid of 220 kV or higher;

d) Electrical grid of 220 kV or higher

2. Power capacity of electrical grid and voltage of electrical grid under electrical supply grid development plan of provincial planning shall be determined as follows:

a) Power source of which installation capacity is below 50MW and connected electrical grid of 110 kV or lower;

b) Electrical grid of 110 kV;

c) Estimated total scale of medium-voltage electrical grid;

d) Scale of power source and electrical grid in provinces in accordance with electricity development planning.

Article 5. Cases where power sources, electrical grids are not included in electricity development planning, electrical supply grid development plan of provincial planning

1. Power source that does not affect national electrical system includes:

a) Power source in mountainous regions, border areas, islands that has not been connected to national electrical system;

b) Electricity self-produced and self-consumed from renewable sources, new energy and not connected to national electrical system.

2. Power source that marginally affects national electrical system includes:

a) Power source connected to electrical grid and outfitted with means to prevent backfeeding to the national electrical system;

b) Power source self-produced, self-consumed from renewable energy, new energy sources connected to low-voltage electrical grid;

c) Power source self-produced, self-consumed from renewable energy, new energy sources of households living in single family houses, state agency headquarters, and public structures;

d) Power source that utilizes residual heat from manufacturing process for self-consumption processes with or without connection to national electrical grid where produced electricity is not sold onto electrical grid.

3. Power source not connected, not selling electricity onto electrical grid, except for electricity import and export.

4. Low-voltage electrical grid.

5. Renovation and/or upgrade of electricity projects without increasing capacity or voltage and without increasing land use demand includes:

a)Renovation and upgrade of power plant, electrical substations in a manner that does not increase capacity, land use demands beyond the scope of existing power plants and structures;

b) Renovation, upgrade, installation of subsurface electrical in a manner that does not increase voltage or land use demands;

c) Relocation of electrical grid structures for the purpose of accommodating compensation and site preparation of investment projects other than electricity at request of competent authorities for socio-economic development in a manner that does not alter voltage or power capacity.

Chapter III

DIGITAL TRANSFORMATION, OPERATIONAL MANAGEMENT OF ELECTRICITY INFORMATION AND DATA SYSTEM

Article 6. Digital transformation, information and data system in electricity sector

1. Digital transformation, information and data system in electricity sector consists of information technology infrastructures, software, database complaint with digital technology platforms developed, integrated to energy information system for the purpose of accommodating state management in electricity development coordination for socio-economic development; energy security assurance; implementation of solutions, regulations, policies on effective electricity development; requirements pertaining to digital transformation in electricity.

2. Information technology infrastructures mean equipment and system for production, transmission, collection, processing, storage, and communication of digital information and consist of Internet, computer network, computing equipment (clients, servers), networking equipment, security and safety equipment, peripherals, and auxiliary equipment.

3. Software application is to be compliant with technical regulations on application of information technology in state authorities, satisfactory to demands of state authorities for coordinating electricity development, and level of information sharing, information safety; encourage application of new technologies, including artificial intelligence, big data, block chain, cloud computing, 5G.

4. Database of information and data system in electricity sector consists of:

a) Technical characteristics of infrastructures of power plants, power lines, and electrical substations;

b) Information, data of electricity production and service;

c) Information and data on primary energy supply for electricity production;

d) Information and data on energy production and conversion for electricity production;

dd) Average electricity rate by period, average energy rate by period for electricity production;

e) Other information in accordance with energy statistical indicators declared by the Ministry of Industry and Trade.

Article 7. Policies of the Government on digital transformation, information and data system in electricity

1. The Government shall provide necessary resources for digital transformation, operation of information and data system in electricity sector, to be specific:

a) Allocate investment for infrastructure construction, upgrade of information system satisfactory to management, connection, and sharing demands in electricity and information safety sectors;

b) Allocate funding under estimates on management, operation, upgrade, continuation of information system and database, inspection, collection and update of electricity database from recurrent expenditure of annual state budget in accordance with budget decentralization (non-recurrent and non-autonomous expenditure on task implementation) of state authorities;

c) Provide training for professional qualifications, communication skills, ability to use technical, technology equipment, digital transformation for participants and operators.

2. The Government shall provide personnel for operation, connection, and data sharing:

a) Personnel for connection and data sharing are provided from locally available human resources currently in charge of managing, operating information system; or by hiring information technology services and other sources as per the law;

b) State authorities providing and accessing data shall have the responsibility to maintain personnel for management, connection, and sharing.

3. Enterprises of which 100% charter capital is held by the State or enterprises that hold 100% of their charter capital of which ownership is represented by ministries, ministerial agencies and are operating in relevant sectors shall allocate expenditure in accordance with Point a, Point b, and Point c Clause 1 of this Article in order to operate and connect to electricity information system, data of the Ministry of Industry and Trade.

4. Organizations and individuals operating in relevant sectors shall allocate expenditure in accordance with Point a, Point b, and Point c Clause 1 of this Article in order to operate and connect to provincial-level electricity information system and data and benefit from policies as per the law.

Article 8. Organizing implementation and management of digital transformation, information system, data in electricity sector

1. The Ministry of Industry and Trade shall develop infrastructures and operate information system, data in electricity sector in central level; take charge of data administration, data sharing and access administration in electricity sector; inspect, collect, consolidate, and update electricity data and information; guide relevant agencies, organizations to provide data, data manifest to enable state authorities to access and use; manage data use and provision depending on data sharing level.

2. The Ministry of Finance shall conform to assigned tasks and responsibilities, balance, allocate expenditure on digital transformation, operation of electricity information and data system in accordance with Clause 1 Article 7 hereof.

3. Ministries, ministerial agencies, Governmental agencies shall, at their discretion or by directing specialized entities to, inspect and collect field-specific electricity database and implement digital transformation in electricity sector within their authority and send to Ministry of Industry and Trade on a periodic and annual basis; guarantee data connection and sharing activities.

4. Provincial People's Committees shall request provincial People’s Councils to allocate expenditure in accordance with Clause 1 Article 7 hereof; direct Departments of Industry and Trade to build infrastructures, operate provincial-level electricity information and data system in accordance with local electricity development, and connect to electricity information and data system of Ministry of Industry and Trade; submit reports to Ministry of Industry and Trade on a periodic and annual basis.

5. Enterprises of which 100% charter capital is held by the State or enterprises that hold 100% of their charter capital of which ownership is represented by ministries, ministerial agencies and operating in relevant fields shall submit periodic, annual reports to the Ministry of Industry and Trade; organizations and individuals operating in relevant fields shall submit periodic, annual reports to the Department of Industry and Trade.

Chapter IV

INVESTMENT AND DEVELOPMENT OF ELECTRICITY PROJECTS

Article 9. General provisions

1. Investment and development of electricity projects shall conform to planning, investment, construction, environmental protection, electricity laws, and other relevant law provisions.

2. Prioritize infrastructure development of LNG import terminals in a manner compliant with centralized LNG terminal model with high capacity and regasified LNG pipeline system installed from centralized LNG terminals to thermal power plant in order to optimize shared infrastructures.

Article 10. Milestones of each stage of power source construction project

1. Milestones of each stage of power source construction projects under Clause 1 Article 12 of the Law on Electricity consists of milestones compliant with investment laws and the following milestones:

a) Issuance of decision on project investment;

b) Commencement of construction of primary project structures;

c) Project operation.

2. Milestones under Clause 1 of this Article shall be specified under Certificate of investment registration or written approval of investment guidelines of power source construction projects.

Article 11. Criteria for determining electricity projects under list of priority investment projects of the Government

Criteria for categorizing electricity projects implemented by enterprises of which 100% charter capital is held by the State or enterprises that hold 100% of their charter capital under list of priority investment projects of the Government:

1. Electricity projects for ensuring national energy security and solving urgent issues pertaining to electricity supply security includes:

a) Emergency electricity projects and structures;

b) Projects of national importance, priority projects of electricity sector according to electricity development planning;

c) Electricity projects in which the Government holds monopoly in construction in accordance with Point b Clause 2 Article 5 of the Law on Electricity;

d) Electricity projects serving national defense and security according to decisions of competent authorities.

2. Electrical grid projects where the Government performs land expropriation for socio-economic development for national benefits and public interest in accordance with Land Law.

3. Electricity projects for electricity supply of rural areas, ethnic minority zones, mountainous regions, border zones, islands, and areas with disadvantaged socio-economic conditions.

4. New energy electricity projects, renewable energy electricity projects promoting energy transition, greenhouse gas reduction in accordance with Vietnam’s goals and commitments.

Article 12. Application, procedures for developing, appraising request for approval, revision of investment guidelines of investment projects for 220 kV electrical grid or lower that go through at least 2 provincial-level administrative divisions and require investment guideline approval according to the Law on Investment

1. Application and procedures for developing, appraising request for approval of investment guidelines shall conform to investment laws and Clause 2 Article 13 of the Law on Electricity; competent authorities approving investment guidelines shall be determined in accordance with Point a Clause 2 Article 13 of the Law on Electricity.

2. Request for feedback and response during appraisal for approval of investment guidelines compliant with Point d and Point dd Clause 2 Article 13 of the Law on Electricity shall only cover details related to planning, land use plan, power line direction within the province in question.

3. Applications and procedures for approving amendments to investment guidelines shall conform to investment laws. Where amendment takes place in other provinces, competent provincial People’s Committees entitled to amendment to investment guidelines shall consult provincial People’s Committees of provinces where said amendment takes place in accordance with Clause 2 of this Article.

Article 13. Procedures for approval, amendment to medium-voltage, low-voltage electrical grid investment portfolio

Depending on electrical supply grid development plans under provincial planning and investment demands for medium-voltage and low-voltage electrical grids, electricity entities or investors shall request provincial People’s Committees to approve investment portfolio in accordance with Clause 3 Article 13 of the Law on Electricity as follows:

1. Application for approval of medium-voltage, low-voltage electrical grid investment portfolio consists of:

a) Written request for approval of medium-voltage, low-voltage electrical grid investment portfolio using Form No. 1 under Appendix attached hereto;

b) Documents pertaining to legal status of electricity entities and investors, including: ID card, passport that has not expired, other identity verification documents in case of individuals; tax identification number in case of organizations;

c) Documentary proof of financial capabilities of electricity entities, investors which consist of any of the following documents: financial state of the last 2 years of electricity entities, investors; financial support statement of parent company; financial support statement of financial institution; financial guarantee of investors; other documentary proof of financial capabilities of investors.

2. Appraisal of request for approval of medium-voltage, low-voltage electrical grid investment portfolio consists of:

a) Conformity assessment of project investment portfolio with expected medium-voltage in electrical supply grid development plans under provincial planning;

b) Assessment of investment necessity and investment goals.

3. Within 3 working days from the date on which Departments of Industry and Trade receive the applications, Departments of Industry and Trade shall have the responsibility to examine adequacy and legitimacy of the application. Where the application is inadequate, Departments of Industry and Trade shall request electricity entities and investors in writing to amend the application.

Within 7 working days from the date on which Departments of Industry and Trade receive adequate applications in accordance with Clause 1 of this Article, Departments of Industry and Trade shall produce appraisal reports consisting of details under Clause 2 of this Article and request provincial People's Committees to approve.

4. Within 5 working days from the date on which provincial People’s Committees receive application and appraisal reports, provincial People's Committees shall consider and approve medium-voltage, low-voltage electrical grid investment portfolio using Form No. 2 under Appendix attached hereto. In case of rejection, provincial People’s Committees shall respond electricity entities and investors in writing and state reason for rejection.

5. Applications under Clause 1 of this Article shall be submitted on information system for administrative procedures of provinces and central-affiliated cities or via post service or in-person at local Departments of Industry and Trade.

6. Where projects under medium-voltage, low-voltage electrical grid investment portfolio approved by provincial People’s Committees are to be added, replaced, or removed during implementation of the projects, electricity entities and investors shall amend investment portfolio as follows:

a) Application for amendment to investment portfolio consists of: Written request for amendment of investment portfolio using Form No. 1 under Appendix attached hereto and information on implementation of projects in the portfolio; documents related to the amendment (if any);

b) Procedures for approval for amendments to medium-voltage, low-voltage electrical grid investment portfolio shall conform to Clauses 2, 3, 4, and 5 of this Article.

Article 14. Principles and criteria for determining emergency electricity projects and structures

1. Emergency electricity projects and structures shall satisfy principles below:

a) Such electricity projects and structures are included in electricity development projects, electrical supply grid development plan in provincial planning or implementation plan for electricity development planning, implementation plan for provincial planning which contains provisions pertaining to electrical supply grid development plan. Where a project is not included in planning or plan, competent authority must approve planning amendment, addition or plan amendment in accordance with planning laws;

b) Investors have not been determined and construction time is to be shortened relative to regular construction investment procedures in order to promptly resolve urging issues pertaining to electricity supply security.

2. Projects for emergency construction of power sources and connected grids are categorized by any of the criteria below:

a) Projects for construction of power sources and connected grids are required to replace a project or projects behind on schedule according to documents on approval or investment guideline amendment of competent authorities, projects temporarily suspended or permanently suspended or where load increases unexpectedly causing electricity shortfall or insufficient electricity supply security during planning period;

b) Projects for construction of power sources and connected grids are terminated in accordance with investment laws and handed over to enterprises of which 100% charter capital is held by the State or enterprises that hold 100% of their charter capital by competent authorities for investment and construction and require shortened implementation period for the purpose of maintaining electricity supply security during planning period due to reasons under Point a of this Clause.

3. Emergency electrical grid construction projects playing an important role in transmitting electrical powers between areas to prevent overload of electrical grid are categorized by any of the criteria below:

a) Projects, structures require investment to replace project or projects that are behind on schedule in accordance with documents approving or amending investment guidelines of competent authorities competent authorities and, in case of electricity shortfall risks, require a decrease in load, supply capacity forecast of electrical system for the next 2 years from the date on which proposition for emergency projects is made and approved by competent authorities;

b) Projects, structures require shorter completion time to promptly satisfy unexpectedly high load demands and project execution period from the date on which the projects are approved by competent authorities as emergency electricity projects to the date on which the projects enter into operation is less than 24 months for electrical grid projects, structures under 500 kV and 18 months for electrical grid projects, structures under 220 kV;

c) 110 kV side projects and structures for synchronous emergency operation of 220 kV, 500 kV electrical substations;

d) Electrical grid projects, structures for regional connection of 110 kV voltage or higher where Electrical system operators determine that relevant regional electrical grid is insufficient to maintain safe operation in accordance with forecast for the next 2 years from the date on which propositions for emergency electricity projects are made and approved by competent authorities.

4. Emergency electrical grid projects, structures serving national defense and security or local socio-economic development demands are categorized by any of the criteria below:

a) Electrical projects, structures serving urgent national defense and security demands;

b) Projects, structures that must be completed as soon as possible to promptly satisfy unexpectedly high load demands for local socio-economic development where project execution period from the date on which competent authorities approve the projects as emergency projects to the date on which the projects enter into operation is less than 18 months for 110 kV electrical grid projects, structures.

5. On the basis of periodic, irregular reports on planning, assessment reports on planning implementation in accordance with planning laws, reports on electrical system operation, and principles and criteria under this Article, the Ministry of Industry and Trade and provincial People’s Committees shall propose emergency electrical projects and structures depending on power capacity under Article 4 hereof and request Prime Minister to approve as per the law.

Article 15. Principles of energy charge pass-through; long-term minimum contracted quantity for gas-fired thermal energy projects

1. Depending on development levels of competitive electricity markets, gas-fired thermal power plant projects are to adopt appropriate development regulations, policies in order to maintain energy security, harmonize combined national interest and interest of the Buyer and the Seller.

2. Principles of energy charge pass-through:

a) Fuel costs in calculation of electricity price under PPA signed by the Seller and the Buyer shall be determined by fuel costs at power plants. Where the Seller signs multiple fuel purchase agreements, fuel costs shall be determined via quantity-weighted mean of invoices under these fuel purchase agreements;

b) In respect of power plant projects consisting of storage units, gas pipelines for import and direct use of LNG, the Seller has the right to recover reasonable and legitimate expenditure upon investing in storage units and gas pipelines via PPA price in accordance with negotiation between the Seller and the Buyer without repeating investment in storage units and pipelines at power plants;

c) In respect of power plants sharing storage units and gas pipelines for purchase and use of regasified LNG:

Fuel costs at power plants shall be calculated on the basis of costs for importing LNG to Vietnamese ports and costs for LNG storage, regasification, transport, and distribution services;

The Ministry of Industry and Trade shall evaluate LNG storage, regasification, transportation, and distribution services.

3. Principles of determination of long-term minimum contracted quantity:

Gas-fired thermal power projects shall participate in competitive electricity market of all levels where the Seller and the Buyer shall negotiate about long-term minimum contracted quantity under PPA on the basis of the following principles:

a) In respect of gas-fired thermal power projects utilizing domestic natural gas, long-term minimum contracted quantity shall be determined by the maximum gas supply capability in a manner satisfactory to fuel, capacity, available electricity generation liabilities of gas-fired thermal power projects;

b) In respect of gas-fired thermal power projects utilizing imported LNG:

Long-term minimum contracted quantity shall not be lower than 65% of average electricity generated over multiple years of gas-fired thermal power projects. Long-term minimum contracted quantity shall be adopted throughout principal and interest repayment period up to 10 years from the date on which projects enter into operation;

Following adoption period of long-term minimum contracted quantity, contracted quantity or percentage of electricity to be paid by contract rate of remaining years shall be agreed upon by the Seller and the Buyer during PPA negotiation and discussion and relevant law provisions;

Average electricity generated in multiple years is to be determined in accordance with methods for determining electricity generation service costs; principles of electricity cost determination for execution of electricity projects; basic details of PPA promulgated by the Minister of Industry and Trade and provisions under PPA.

4. Application of Clause 2 and Clause 3 of this Article:

a) In respect of gas-fired thermal power projects utilizing imported LNG where electricity generation is carried out before January 1, 2031, Clause 2 and Clause 3 of this Article shall be adopted as soon as competent authorities issue written approval for construction commissioning results of project developers;

b) In respect of gas-fired thermal power projects utilizing domestic LNG where electricity generation is carried out before January 1, 2036, Clause 2 and Clause 3 of this Article shall be adopted as soon as competent authorities issue written approval for construction commissioning results of project developers.

5. The Buyer and the Seller have the responsibility to:

a) negotiate about long-term minimum contracted quantity and effective period under PPA in a manner compliant with this Article and other relevant law provisions;

b) provide the Buyer with data, technical specifications, economic - financial data and other necessary information of gas-fired thermal power projects which serve as the basis for PPA negotiation; ensure accuracy and credibility.

6. National Load Dispatch Center and the Electricity Market Operator have the responsibility to:

a) develop plans for operating and coordinating electricity market in a manner compliant with this Article and regulations of the law on operation of competitive electricity market of all levels and load dispatch, operation of the Minister of Industry and Trade;

b) closely cooperate with the Buyer and the Seller in operating, dispatching, mobilizing power plants utilizing domestically produced LNG and imported LNG in accordance with regulations of the law on operation of competitive electricity market of all levels and load dispatch, operation of the Minister of Industry and Trade.

7. Gas-fired thermal power plants invested, built under public private partnerships and adopting BOT contracts may choose to adopt provisions under this Article and other relevant law provisions.

Article 16. Investment funding after electricity meters for domestic purposes in households in rural areas, ethnic minority zones, mountainous regions, border areas, islands, and areas with disadvantaged socio-economic conditions

1. Support for electricity supply for domestic purposes after electricity meter shall be provided for households (including wire, primary electrical panels, circuit breakers, electrical sockets, bulbs, other materials and equipment) in rural areas, ethnic minority zones, mountainous regions, border areas, islands, areas with disadvantaged socio-economic conditions and households whose residence is damaged by natural disasters, fire, or to be rebuilt.

2. Support for investment in wires after electricity meter to primary distribution panels for domestic purposes shall be provided for households in rural areas, ethnic minority zones, mountainous regions, borders, islands, and areas with disadvantaged socio-economic conditions and households whose residence is damaged by natural disasters, fire to an extent that reconstruction is not required.

3. Forms of support provided by the Government under Clause 1 and Clause 2 of this Article shall conform to electricity supply programs, projects, structures utilizing state investment funding.

Chapter V

BIDDING FOR INVESTOR SELECTION OF ELECTRICITY BUSINESS INVESTMENT PROJECT

Article 17. Electricity business investment projects where bidding for investor selection is required

1. Electricity business investment projects under Clause 1 Article 19 of the Law on Electricity under National planning for electricity development of 2021 - 2030 period and vision to 2050 or provincial planning of 2021 - 2030 period and vision to 2050 shall require bidding for investor selection where at least 2 investors are interested, including:

a) Gas-fired and coal-fired thermal power project;

b) Renewable energy power projects including: solar power, wind power, hydroelectricity, bioenergy.

2. Bidding for contractor selection of electricity business investment projects shall conform to bidding laws and this Decree.

Article 18. Specific requirements in bidding documents of electricity business investment projects

1. In respect of projects under planning, plan for planning execution, plan for electrical grid development in provincial planning, EVN (or authorized representatives thereof), Northern Power Corporation, Central Power Corporation, Southern Power Corporation, Hanoi City Power Corporation, Ho Chi Minh City Power Corporation shall have responsibility to purchase electricity at request of competent authority in accordance with bidding laws or authorities deciding to conduct bidding for investor selection.

2. Competent authorities in accordance with bidding laws or authorities deciding to conduct bidding for investor selection shall have the responsibility to determine the Buyer in accordance with Clause 1 of this Article which will sign PPA with investors.

3. Bidding documents of electricity business investment projects consist of:

a) Information on the Buyer in accordance with Clause 1 of this Article;

b) Documents produced in accordance with bidding laws;

c) Prefeasibility study of the projects;

d) Draft PPA proposed by the Buyer after negotiating with authorities deciding to conduct bidding for investor selection;

dd) Required import substitution percentage in case of important equipment and counseling services for the purpose of continuous electricity supply, national electricity security in accordance with electricity laws;

e) Investment security measures in accordance with Article 15 hereof.

4. Responsibility to incur costs for surveying, preparing prefeasibility study:

a) Investors shall incur if they propose the projects;

b) Competent authorities in accordance with bidding laws, authorities deciding to conduct bidding for investor selection shall incur using recurrent expenditure, except for cases detailed under Point a of this Clause;

c) Selected investors shall incur expenditure provided under Point b of this Clause;

d) Where expenditure has been paid in accordance with Point a of this Clause and where investment guidelines of the projects are rejected or no investors are awarded the contract, investors proposing the projects shall incur the expenditure;

dd) Where expenditure has been paid in accordance with Point b of this Clause and where no investors are awarded the contract or implementation of the project is suspended at request competent authority, such expenditure shall be recorded to as legitimate expenditure of competent authorities in accordance with bidding laws and authorities deciding to conduct bidding for investor selection.

Article 19. Evaluation criteria for electricity sector development effectiveness

1. In respect of electricity business investment projects compliant with tariff promulgated by the Ministry of Industry and Trade, evaluation criteria shall be electricity price as follows:

a) Ceiling price of electricity in bidding documents means the highest prince in electricity price tariff corresponding to type of power source promulgated by the Ministry of Industry and Trade in the bidding year;

b) Investors shall propose electricity price in bidding documents not higher than ceiling price under bidding documents;

c) Winning bid shall be highest electricity price with which the Buyer negotiates PPA price with the awarded investors.

2. In respect of electricity business investment projects without price tariff promulgated by the Ministry of Industry and Trade:

a) Evaluation criterion for electricity sector development effectiveness equals at least the annual payment to state budget. Investors shall propose this payment value under their bid not lower than the minimum value under their bidding documents;

b) Payment under Point a of this Clause is independent from liabilities to state budget of the investors as per the law;

c) Submission of payment under Point a of this Clause to the state budget shall be implemented as follows: value of annual payment to state budget shall be determined by propositions of the investors in their bid; method, schedule, and time limit for submitting payment under Point a of this Clause shall be elaborated under contracts for business projects.

Article 20. Negotiation and conclusion of electricity business contracts, power purchase agreements

Negotiation and conclusion of PPA with winning investors:

1. The maximum time limit in which the winning investors must approve prefeasibility study for construction of electricity projects from the date on which contracts for electricity business investment projects:

a) In respect of hydroelectricity projects, gas-fired thermal power projects, coal-fired thermal power projects, and wind power projects, up to 15 months;

b) In respect of bioenergy projects, solar power projects, up to 6 months.

2. On the basis of bidding for investor selection of electricity business investment projects and approved feasibility study for construction of electricity business investment projects, the Buyer and winning investors have the responsibility and obligation to negotiate, conclude PPA. The time limit for negotiating and concluding PPA from the date on which investors submit legitimate documents to the Buyer shall be 3 months.

3. The Buyer and winning investors shall be responsible for time limit for negotiation and conclusion of PPA in a manner ensuring project schedule as per electricity development planning, provincial planning, and electricity supply security.

Chapter VI

ORGANIZING IMPLEMENTATION

Article 21. Responsibility for implementation

1. The Ministry of Industry and Trade has the responsibility to take charge and cooperate with relevant agencies, organizations in:

a) guiding and examining compliance with this Decree of organizations and individuals;

b) consolidating and evaluating implementation results of this Decree and reporting to the Government for consideration and amendment on an annual basis.

2. Provincial People’s Committees shall:

a) organize, examine, and supervise implementation of this Decree and state management pertaining to power source and grid development;

b) assign Departments of Industry and Trade to take charge and cooperate with relevant entities in examining compliance with regulations on planning, construction investment, bidding for investor selection for electricity business in respect of electricity projects in accordance with this Decree.

Article 22. Amendment to Decree No. 115/2024/ND-CP dated September 16, 2024 elaborating the Bidding Law pertaining to investor selection for investment projects using land

1. Amend Clause 1 Article 14:

“1. Procuring entities shall assign expert teams to prepare bidding documents consisting of elements under Article 48 of the Bidding Law in order to enable investors to develop bid. In respect of investment projects for construction power structures, bidding documents shall also include draft PPA proposed by the Buyer and negotiated with authorities deciding to conduct bidding in accordance with electricity laws.”.

2. Amend Point d Clause 2 Article 19:

“d) d) Value proposed by the investors pertaining to effectiveness of investment in field, sector, local development in letter bid consists of any of the following information: payment to state budget; percentage of revenues proposed by the investors for payment to state budget; goods and service price; number of non-profit public structures; value of social support or other social benefits provided for social support beneficiaries defined either via monetary value or number of beneficiaries; type and level of pollution and total quantity of pollutants released to the environment; area of land used, land use coefficient; rate of payment to state budget and percentage increase in number of investors proposing construction projects for aviation service establishments; annual payment to state budget, electricity price in case of investment projects for construction of energy structures; relocation homes delivery time limit in respect of apartment building renovation and reconstruction projects (where evaluation standards pertaining to effectiveness of investment in field, sector, local development;”.

3. Amend Clause 2 Article 49:

“2. In respect of investment projects for construction of energy structures, evaluation standards pertaining to effectiveness of investment in field, sector, local development shall conform to electricity laws.”.

4. Annul Article 70.

5. Amend Point a Clause 7 Section II Appendix III:

“a) Value proposed by the investors consists of: payment to state budget; percentage of revenues proposed by the investors for payment to state budget; goods and service price; number of non-profit public structures; value of social support or other social benefits provided for social support beneficiaries defined either via monetary value or number of beneficiaries; type and level of pollution and total quantity of pollutants released to the environment; area of land used, land use coefficient; rate of payment to state budget and percentage increase in number of investors proposing construction projects for aviation service establishments; annual payment to state budget, electricity price in case of investment projects for construction of energy structures; relocation homes delivery time limit in respect of apartment building renovation and reconstruction projects;”.

Article 23. Entry into force

This Decree comes into force from the date of signing.

Article 24. Transition clauses

1. Electricity projects that have been included in electricity development planning, implementation plans for electricity development planning of which power capacity is included in electrical supply grid development plans under provincial planning in accordance with Article 4 hereof shall conform to decisions approved by competent authorities. These projects shall be updated in provincial planning or implementation plans for provincial planning where provincial planning is developed or amended after the effective date hereof.

2. Medium-voltage, low-voltage electrical grid projects of which adequate applications for approval, amendment of investment guidelines have been received by investment registration authorities before the effective date hereof shall conform to investment laws.

3. In respect of electricity business investment projects, bidding for investor selection shall be conducted as follows:

a) Where bidding documents have not been issued as of the effective date hereof, bidding documents shall be required to comply with this Decree;

b) Where bidding documents have been issued in accordance with Decree No. 115/2024/ND-CP dated September 16, 2024 and guiding documents and where investor selection results have not been approved as of the effective date hereof, if bid has been submitted, conduct bid evaluation on the basis of issued bidding documents; if bid has not been submitted, authorities deciding to conduct bidding for investor selection may extend bid closing deadline and amend bidding documents in accordance with this Decree.

Article 25. Responsibilities for implementation

Ministers, heads of ministerial agencies, heads of Governmental agencies, Chairpersons of provincial People’s Committees shall be responsible for the implementation of this Decree.

APPENDIX

(Attached to Decree No. 56/2025/ND-CP dated March 3, 2025 of the Government)

Form No. 1: Application for approval of medium-voltage, low-voltage electrical grid investment portfolio (or investment portfolio amendments)

APPLICATION

For approval of medium-voltage, low-voltage electrical grid investment portfolio (or investment portfolio amendments)

To: Department of Industry and Trade of …………… (Province/City)

Pursuant to the Law on Electricity No. 61/2024/QH15 dated November 30, 2024;

Pursuant to Decree No. ……… /2025/ND-CP dated …………… 2025 of the Government elaborating electricity development planning, electrical supply grid development plans, electricity project investment and construction, and bidding for investor selection for electricity business investment projects;

…………………… (Electricity entity/Investor) hereby requests Department of Industry and Trade of ……… (Province/City) to approve medium-voltage, low-voltage electrical grid investment portfolio (or investment portfolio amendments).

I. INFORMATION ON INVESTMENT PORTFOLIO

1. Investment portfolio consists of: name of project, expected scale (capacity, voltage, length, etc.), estimation (of investment capital, funding sources, schedule, areas receiving electricity supply, land use demand) according to appendix.

2. Name of electricity entity/investor and contact information (phone number, address): …………

3. Necessity for investment, investment goals; conformity to electrical supply grid development plans under provincial planning.

In case of application for investment portfolio amendments: include information on implementation of projects under the investment portfolio, documents relevant to the amendments (if any).

II. LIST OF ATTACHMENTS

1. Documents on legal status of electricity entity, investor include:

ID card, passport that has not expired, other identity verification documents in case of individual; tax identification number in case of organization.

2. Documentary proof of financial capabilities of electricity entity, investor which consist of any of the following documents: financial state of the last 2 years of electricity entity, investor; financial support statement of parent company; financial support statement of financial institution; financial guarantee of investor; other documentary proof of financial capabilities of investor.

…………………… (Electricity entity/Investor) hereby requests Department of Industry and Trade to appraise medium-voltage, low-voltage electrical grid investment portfolio (or investment portfolio amendments) on the basis of the aforementioned information.

Appendix

MEDIUM-VOLTAGE, LOW-VOLTAGE ELECTRICAL GRID INVESTMENT PORTFOLIO (OR INVESTMENT PORTFOLIO AMENDMENTS)

Form No. 2: Decision approving medium-voltage, low-voltage electrical grid investment portfolio (or investment portfolio amendments) on ………… (Province/City)

DECISION

Approving medium-voltage, low-voltage electrical grid investment portfolio (or investment portfolio amendments)

PEOPLE’S COMMITTEE OF ……………

Pursuant to the Law on Electricity dated November 30, 2024;

Pursuant to Decree No. ……… /2025/ND-CP dated …………… 2025 of the Government elaborating electricity development planning, electrical supply grid development plans, electricity project investment and construction, and bidding for investor selection for electricity business investment projects;

Pursuant to other relevant legal basis (Provincial planning; implementation plan for provincial planning);

Pursuant to ……… on functions, tasks, powers, and organizational structure of Departments of Industry and Trade;

Pursuant to Application for approval of medium-voltage, low-voltage electrical grid investment portfolio (or investment portfolio amendments) submitted by ………… on ………… (date) with additional documents submitted on ………… (date) (if any) of (Electricity Entity/Investor);

Considering appraisal report No. ……………… dated ………………… of Department of Industry and Trade; remarks of relevant entities/agencies (if any).

HEREBY DECIDES:

Article 1. Approve medium-voltage, low-voltage electrical grid investment portfolio (or investment portfolio amendments) as follows:

1. Investment portfolio (or approved amendments to investment portfolio) consists of: name of project, expected scale (capacity, voltage, length, etc.), estimation (of investment capital, funding sources, schedule, areas receiving electricity supply, land use demand) according to appendix.

2. Name of electricity entity/investor and contact information (phone number, address, etc.): …………

3. Investment objectives: ………….

Article 2. Organizing implementation

1. Responsibilities of Electricity entity/Investor:

2. Responsibility of Departments of Industry and Trade:

3. Responsibility of relevant provincial agencies (if any):

Article 3. This Decision comes into force from the date of signing.

Department of Industry and Trade and Electricity Entity/Investor mentioned under Article 1 shall be responsible for the implementation of this Decision.

Office of the People’s Committee of ………. Province/City is responsible for uploading this Decision on website of …………

Appendix

MEDIUM-VOLTAGE, LOW-VOLTAGE ELECTRICAL GRID INVESTMENT PORTFOLIO (OR INVESTMENT PORTFOLIO AMENDMENTS)