Ministry of Industry and Trade completes electricity generation price framework and service price calculation method

The Ministry of Industry and Trade has issued Circular 54/2025/TT-BCT, amending two important circulars related to the electricity generation price framework, electricity import price and the method of determining electricity generation service price. The amendment aims to update the system of formulas and criteria for determining prices and expand the scope of applicable subjects in accordance with the actual requirements of electricity market operation.

Bac Lieu Wind Power Plant. Photo: VNA

According to the Circular, many regulations in Circular 09/2025/BCT are adjusted; notably, the addition of groups of factories that must apply the new electricity price framework, including factories whose price schedules or power purchase contracts have expired; BOT projects that have completed transfer to the State; small-scale renewable energy plants that are no longer subject to the avoided cost pricing mechanism. Thereby, the electricity price framework will become an important reference basis for market participants after the end of the preferential period or long-term contract.

The Circular also clearly defines the scope of regulation for organizations and enterprises that own and operate power plants in Vietnam. Some subjects are excluded, such as multi-purpose strategic hydropower plants; renewable energy projects that are enjoying the avoided cost mechanism; power units that specialize in providing ancillary services and energy storage systems using independent batteries.

A notable new point is that for the first time, the concept of “flexible power plants” is included in the legal document. This concept includes plants using piston internal combustion engine (RICE) technology or Aero-GT static gas turbines - solutions with fast start-up capabilities, modular design, suitable for the role of balancing supply and demand immediately and supporting stable operation of the power system in the context of a strong increase in the proportion of renewable energy.

In addition, the concepts and calculation methods related to pumped storage power plants have also been improved. The update helps to reflect the specific characteristics of energy storage technology by taking advantage of the difference in elevation between reservoirs to pump, store and generate electricity according to system needs.

Circular 54/2025/TT-BCT also changes many contents on the method of calculating the power generation price framework, including the method of determining investment costs, discount rates, loan interest rates, domestic and foreign loan structure, as well as other input parameters. These parameters are clearly regulated in terms of data sources, average determination period, and legal basis to ensure transparency, science and ease of implementation in practice.

Notably, the Circular supplements Article 8a with separate regulations on the method of determining the price framework for other types of power plants, such as small-capacity coal-fired thermal power plants; projects with 100% state-owned capital; projects using all domestic currency loans; or renewable energy plants that are no longer subject to the original contract price. The determination of the ceiling price for these types is still carried out according to the general principles of Circular 09/2025/BCT, and is based on data from the feasibility study report, basic design or the remaining asset value after the contract term.

Meanwhile, Circular 12/2025/BCT was also amended, adding Clause 16 to Article 2 by introducing the concept of "expected level P50". This is an indicator showing the average electricity output over many years with a probability of 50% that the factory can achieve or exceed, thereby standardizing the basis for calculating the delivery output of factories when making price lists or building technical parameters.

According to the Ministry of Industry and Trade , Circular 54/2025/TT-BCT will take effect from November 21, 2025. During the implementation process, if any problems arise, relevant organizations and individuals are responsible for reporting them to the Ministry of Industry and Trade for consideration, adjustment and completion to ensure compliance with the actual developments of the electricity market and system operation requirements.

Source: https://baotintuc.vn/kinh-te/bo-cong-thuong-hoan-thien-khung-gia-phat-dien-va-phuong-phap-tinh-gia-dich-vu-20251124162859220.htm