Bac Lieu Wind Power Plant. Photo: VNA
The circular was drafted based on the 2024 Electricity Law and Decree 40/2025/ND-CP on the functions and tasks of the Ministry of Industry and Trade, as proposed by the Electricity Department. The document covers many technical aspects, from the scope of application, principles for price determination, calculation methods to the structure of components of power price, energy price, and operating costs.
The circular also provides detailed guidance on the provisions of the 2024 Electricity Law regarding the principles of pricing during the implementation of power projects and the construction of power purchase agreements. The applicable subjects include organizations and individuals owning pumped-storage hydropower plants included in the development list for the 2025-2030 period according to Decision 768/QD-TTg dated April 15, 2025, and related entities.
According to regulations, the electricity generation service fee for pumped-storage hydropower plants is established based on the total reasonable costs of the project throughout its lifecycle and ensures that the internal rate of return (IRR) does not exceed 12%. The service fee consists of two parts: the capacity price and the energy price. The capacity price reflects fixed costs and fixed operating and maintenance costs; while the energy price is the variable component, calculated based on the cost of purchasing electricity to pump water up to the reservoir level and any costs for improving electricity quality (if applicable).
The service price excludes value-added tax and other taxes and fees beyond those already included in the pricing plan. The price is also compared with the base year's pumped-storage hydropower generation price framework, based on the comparative price (Pc) formula which includes the power price (PCS), the maximum design operating hours (Tmax), and the base year's electricity price (PĐNB). If the base year does not have a price framework, the costs will be converted to the nearest available framework for reference.
The principles and methods for determining prices in Circular 58/2025/TT-BCT form the basis for constructing power purchase agreements between sellers and buyers, ensuring transparency and conformity with the competitive electricity market mechanism. Contract prices will be calculated annually as stipulated in Chapter III, providing a clear basis for negotiation and project implementation.
The circular also specifies the responsibilities of the units. The Electricity Department is responsible for providing guidance, conducting inspections, and proposing adjustments when necessary. The power system operator must develop a power demand plan, create a schedule for mobilizing generating units, and coordinate safe and optimal operation.
Vietnam Electricity Group (EVN), along with the buyer and seller, agreed on a method for handling exchange rate differences. The buyer is responsible for negotiating the contract, providing data, and coordinating calculations; the seller must provide complete information, be responsible for data quality, and compensate if the available capacity is not guaranteed when the system requires it. Both parties will also renegotiate the service price in accordance with the provisions of the 2024 Electricity Law.
The circular, effective from January 17, 2026, applies to pumped-storage hydropower plants that have not yet signed power purchase agreements. The completion of this legal framework is expected to boost pumped-storage hydropower projects in the 2025-2030 period, increasing the regulation and flexibility of the power system amidst the strong energy transition.
Source: https://baotintuc.vn/kinh-te/quy-dinh-ve-tinh-gia-dich-vu-phat-dien-doi-voi-thuy-dien-tich-nang-20251210093443867.htm
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