The Government has issued Decree 56/2025/ND-CP, effective from 3 March 2025, providing guidance on the Law on Electricity concerning the Power Master Plan, Power Source Development Networks Plan, Investment in Power Projects, and the Tender for Investor Selection in Power Investment Projects (“Decree 56/2025”). Here are some notable regulations provided under Decree 56/2025:
Renewable Energy Projects and Investor Bidding
Under Article 19.1 of the Law on Electricity 2024, investor selection through bidding is required if there are at least two interested investors, in line with the Law on Bidding. The standard for assessing efficiency in the electric power sector development is based on power prices. For electricity projects without a price bracket set by the Ministry of Industry and Trade or projects involving direct power purchase, the assessment standards shall comply with government regulations.
Standards for Efficiency Assessment in Power Sector Development
According to Article 19 of Decree 56/2025:
1. The power ceiling price in the invitation to bid shall be the maximum price of the power generation price framework for the corresponding type of power source issued by the Ministry of Industry and Trade in the bidding year.
2. The investor shall propose a power price in the bid documents that does not exceed the power ceiling price specified in the invitation to bid.
3. The winning power bid price shall be the maximum price for the power purchaser to join the negotiation of the power purchase agreement with the bid-winning investor.
Article 17.1(b) of Decree 56/2025 requires that renewable energy projects, including solar, wind, hydro, and biomass power projects, undergo bidding for investor selection if there are at least two interested investors. These projects must be included in either the national power master plan (2021-2030 with a vision to 2050) or the provincial master plan (2021-2030 with a vision to 2050).
The bidding process for investor selection is governed by the laws on bidding and Decree 56/2025. The bid-winning power price shall be the maximum price for the electricity purchaser to negotiate under the PPA with the bid-winning investor. EVN/the power purchaser shall negotiate and sign the PPA with the bid-winning investor.
Competent Authorities for Investor Selection of Renewable Power Projects
The competent authorities responsible for approving investment policy decisions or deciding on the bidding process include the Ministry of Industry and Trade (MOIT), local provincial people’s committees (PPC), and management boards of economic zones (EZA).
Project Implementation Schedule of Power Projects
The project implementation schedule must be indicated in the IRC or IPD and includes the following milestones:
1. Decision on investment of the project;
2. Commencement of the main construction works;
3. Commercial operation date of the project.
These milestones must be recorded in the IRC or the IPD of the project.
Criteria for Prioritizing Power Projects
Renewable and new energy projects contributing to the energy transition and reducing greenhouse gas emissions, aligned with Vietnam’s national goals and commitments, shall be prioritized for investment.
Criteria for Determining “Urgent” Power Projects and New Projects Not Included in the Power Master Plan
Decree 56/2025 provides criteria for determining urgent power projects:
1. Projects listed in the power master plan, the provincial power source development master plan, or the implementation plan of the power development master plan. If not included in the power master plan, they must have the PM’s approval to be included and determined as urgent projects.
2. Projects requiring a shorter time for investment and construction compared to the normal process to ensure power security needs.
