Tiếng ViệtThe Ministry of Industry and Trade has officially issued a new electricity generation price framework for solar power plants, applicable from 2025. The framework divides the pricing based on geographic regions and introduces a pricing mechanism for systems integrated with storage batteries.
According to the new decision, the electricity generation price is categorized into three regions – North, Central, and South – and two types: plants without storage batteries and those with storage batteries. The announced prices represent the maximum rates (excluding VAT), serving as a basis for power purchase agreements between electricity generation units and the Vietnam Electricity Group (EVN).
Solar Power Without Storage Batteries: Clear Regional Pricing
Specifically, for ground-mounted solar power systems without storage batteries, the highest price in the North is set at 1,382.7 VND/kWh. In the Central and Southern regions, the prices are 1,107.1 VND/kWh and 1,012.0 VND/kWh, respectively. For floating solar power plants, the prices are 1,685.8 VND/kWh in the North, 1,336.1 VND/kWh in the Central region, and 1,228.2 VND/kWh in the South.
Compared to the price framework implemented since 2023 (which did not distinguish regions), the new pricing clearly reflects regional differences, demonstrating the Ministry of Industry and Trade’s efforts to accurately reflect investment and operational costs according to the specific conditions of each area.
Introduction of Mechanism for Plants with Storage Batteries
For the first time, the Ministry of Industry and Trade has included a pricing section specifically for solar power plants with storage battery systems. The maximum price for ground-mounted solar plants with storage in the North is set at 1,571.98 VND/kWh, in the Central region at 1,257.05 VND/kWh, and in the South at 1,149.86 VND/kWh. For floating solar power plants with storage, the corresponding prices are 1,876.57 VND/kWh in the North, 1,487.18 VND/kWh in the Central region, and 1,367.13 VND/kWh in the South.
However, in order to apply these rates, investors must meet specific technical requirements: the storage system’s capacity must be at least 10% of the plant’s total capacity, the storage and discharge duration must be 2 hours, and the amount of energy charged must account for at least 5% of the plant’s total electricity output.
The new price framework was developed based on a proposal from EVN and in compliance with the provisions of Circular 09/2023 issued by the Ministry of Industry and Trade. However, according to some investors in the renewable energy sector, this pricing is still relatively modest, particularly when compared to actual costs and the level of attractiveness needed to attract new investment, as most investors borrow funds in USD and must import equipment from abroad.
This new price framework marks an initial effort to adjust electricity pricing policies to better align with the realities of renewable energy investment in Vietnam. However, experts suggest that to create a strong enough incentive for investors, additional supporting mechanisms are needed, such as tax incentives, transparent bidding mechanisms, support for access to green credit, and exchange rate guarantee policies in long-term contracts.