MOIT Circular 54/2025: New Power Price Frame & Methods
MOIT Issues Circular 54/2025/TT-BCT: Amending Power Generation Price Frames and Service Pricing Methods
The Ministry of Industry and Trade (MOIT) has issued Circular 54/2025/TT-BCT, amending the electricity generation price frame, electricity import prices, and the method for determining electricity generation service prices.
MOIT recently promulgated Circular 54/2025/TT-BCT, simultaneously amending Circular 09/2025/TT-BCT and Circular 12/2025/TT-BCT related to the electricity generation price frame, electricity import prices, and the method for determining electricity generation service prices.
The amendment aims to update the system of formulas and price determination criteria and expand the scope of applicable subjects to suit the actual requirements of electricity market operation.
Expanding the Scope of Application According to the Circular, many regulations in Circular 09/2025/BCT have been adjusted. Notably, it supplements groups of power plants that must apply the new electricity generation price frame, including:
- Power plants with expired tariff terms or Power Purchase Agreements (PPAs).
- Build-Operate-Transfer (BOT) projects that have completed transfer to the State.
- Small-scale renewable energy plants no longer eligible for the “avoided cost” mechanism.
Thereby, the electricity generation price frame will become an important reference basis for units participating in the market after the preferential period or long-term contracts end.
The Circular also clearly defines the scope of regulation for organizations and enterprises owning and operating power plants in Vietnam. Some excluded subjects include strategic multi-purpose hydropower plants; renewable energy projects currently enjoying the avoided cost mechanism; units specializing in providing ancillary services; and independent battery energy storage systems.
Defining “Flexible Power Plants” for the First Time A notable new point is the introduction of the concept of “Flexible Power Plant” into legal documents for the first time. This concept includes power plants using:
- Reciprocating Internal Combustion Engine (RICE) technology.
- Aeroderivative Gas Turbine (Aero-GT) technology.
These solutions feature fast start-up capabilities and modular designs, suitable for undertaking the role of balancing instantaneous supply and demand and supporting power system stability in the context of a strong increase in the proportion of renewable energy.
Updating Pumped Storage & Calculation Methods Additionally, concepts and calculation methods related to Pumped Storage Hydropower plants have been perfected. The update helps accurately reflect the characteristics of energy storage technology by utilizing the elevation difference between reservoirs to pump and store water and generate electricity according to system demand.
Circular 54/2025/TT-BCT also changes many contents regarding the method of calculating the electricity generation price frame, including how to determine:
- Investment costs.
- Discount rates.
- Loan interest rates.
- Domestic and foreign loan capital structure.
- Other input parameters.
These parameters are clearly regulated regarding data sources, average determination periods, and legal bases to ensure transparency, scientific accuracy, and ease of implementation in practice.
Effectiveness According to MOIT, Circular 54/2025/TT-BCT will take effect from November 21, 2025. During implementation, if obstacles arise, relevant organizations and individuals are responsible for reporting them to MOIT for consideration, adjustment, and completion to ensure suitability with actual electricity market developments and system operation requirements.
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