MOIT Circular 62/2025: New Price Frame for Battery Storage
MOIT Issues Generation Price Framework for Battery Energy Storage Systems
The Ministry of Industry and Trade (MOIT) has issued Circular No. 62/2025/TT-BCT, stipulating the method for determining and approving the generation price frame and generation service price for Battery Energy Storage Systems (BESS).
Legal Basis and Scope MOIT recently promulgated Circular No. 62/2025/TT-BCT, regulating the dossiers, sequences, and methods for determining and approving the generation price frame and generation service price of BESS, while also stipulating the main contents of the Power Purchase Agreement (PPA).
The Circular is issued pursuant to Electricity Law No. 61/2024/QH15 and Decree No. 40/2025/ND-CP of the Government, based on the proposal of the Director General of the Electricity Regulatory Authority.
Applicable Subjects: According to the Circular, the regulation applies to agencies, organizations, and individuals owning BESS that meet the following criteria:
- Connected to the national power system at a voltage level of 110 kV or higher.
- Installed capacity of 10 MW or higher.
- Serving the needs of the national power system under the National Power Development Plan for the 2021–2030 period, with a vision to 2050.
The Circular also applies to the Power System and Market Operator (NSMO), Vietnam Electricity (EVN), and related organizations/individuals.
Exclusions: The Circular clearly states cases not applying this method (which follow other specialized MOIT circulars), including:
- BESS combined with renewable energy power plants.
- BESS invested by Power Corporations.
[Image suggestion: Modern Battery Energy Storage System (BESS) facility with containerized units connected to a high-voltage substation. Caption: Circular 62/2025/TT-BCT sets the pricing foundation for large-scale energy storage in Vietnam. Illustration photo]
Price Determination Methodology The Generation Price Frame for BESS is determined as a range from a minimum price of 0 VND/kWh to a maximum price. The maximum price is determined based on the generation price, comprising:
- Average Fixed Price: To recover investment costs (calculated based on annualized investment capital costs and multi-year average delivered energy).
- Fixed Operation and Maintenance (O&M) Price: To recover costs for major/minor repairs and other operational costs.
- Variable Price: Determined to recover charging costs, based on the electricity purchase unit price and the charge-discharge cycle efficiency of the BESS.
Input parameters such as investment rate, installed capacity, economic life, financial discount rate, loan interest rate, and return on equity (ROE) are detailed with clear grounds.
Service Price Principles (12% IRR Cap) The Circular stipulates principles for determining the Generation Service Price:
- Built based on reasonable and valid costs throughout the project’s economic life.
- Ensuring the Financial Internal Rate of Return (IRR) does not exceed 12%.
- Components: Includes Base Year Capacity Price and Base Year Energy Price (excluding VAT and other fees).
- Cap: The service price for comparison with the base year generation price frame must not exceed the generation price frame issued by the MOIT Minister.
Approval Procedure
- Investor Responsibility: Within 15 days from the approval of the Feasibility Study Report, the investor must provide dossiers to EVN.
- EVN Responsibility: Before November 1 annually, EVN calculates and compiles dossiers proposing the generation price frame to submit to the Electricity Regulatory Authority for appraisal and subsequently to the MOIT Minister for approval.
The Circular clearly delineates the responsibilities of the Electricity Regulatory Authority, the System and Market Operator, EVN, the Purchaser, and the Seller in implementing, negotiating, paying, and adjusting generation service prices. Parties are responsible for providing full and accurate data and coordinating to ensure safe and effective system operation.
Effectiveness Circular No. 62/2025/TT-BCT takes effect from January 26, 2026.
View details of the Circular below.
