Vietnam electricity generation price framework 2026
VIETNAM’S 2026 ELECTRICITY GENERATION PRICE FRAMEWORK – WIND, SOLAR, HYDROPOWER, BIOMASS, WASTE-TO-ENERGY AND OTHER POWER SOURCES
Updated as of 12 November 2026
On 5 November 2026, the Ministry of Industry and Trade (MOIT) issued Decision No. 2946/QD-BCT approving the electricity generation price framework for solar power plants and Decision No. 2945/QD-BCT approving the electricity generation price framework for wind power plants.
On 9 November 2026, the Ministry of Industry and Trade further issued Decision No. 2972/QD-BCT approving the 2026 electricity generation price framework for combined-cycle gas turbine power plants using liquefied natural gas (LNG).
On this occasion, BFSC Law Firm provides an overview and update of Vietnam’s 2026 electricity generation price frameworks applicable to various types of power generation facilities, as of 12 November 2026.
1. Overview of the Legal Framework Governing Electricity Generation Prices in Vietnam
In 2026, the Ministry of Industry and Trade continued to issue and update electricity generation price frameworks applicable to various types of power plants, including wind power, solar power, hydropower, coal-fired thermal power, natural gas-fired thermal power, liquefied natural gas (LNG)-fired power and battery energy storage systems (BESS).
The determination of electricity generation prices is of significant importance to investment activities, power project development, power purchase agreement (PPA) negotiations, revenue projections and the assessment of a project’s financial viability.
The principal legal instruments governing the determination of electricity generation prices currently include:
- Law on Electricity No. 61/2024/QH15 dated 30 November 2024, which took effect on 1 February 2025;
- Circular No. 09/2025/TT-BCT dated 1 February 2025, prescribing the dossiers, procedures and methodologies for determining and approving electricity generation price frameworks;
- Circular No. 12/2025/TT-BCT dated 1 February 2025, prescribing the methodology for determining electricity generation service prices, principles for electricity price calculation in the implementation of power projects, and the principal contents of power purchase agreements;
- Circular No. 54/2025/TT-BCT dated 21 November 2025, amending and supplementing certain provisions of Circular No. 09/2025/TT-BCT and Circular No. 12/2025/TT-BCT;
- Circular No. 62/2025/TT-BCT dated 10 December 2025, prescribing the methodology for determining electricity generation service prices for battery energy storage systems and related matters; and
- Decisions issued by the Ministry of Industry and Trade approving electricity generation price frameworks for specific types of power plants in 2026.
As a general principle, the approved electricity generation price framework serves as the basis for Vietnam Electricity (EVN) and power generators to negotiate and determine electricity generation prices and enter into PPAs in accordance with applicable laws. The maximum price approved under a price framework does not automatically constitute the applicable purchase price for every project of the same type.
2. Electricity Generation Price Frameworks Applicable to Different Types of Power Plants in 2026
2.1. Wind Power
On 5 November 2026, the Ministry of Industry and Trade issued Decision No. 2945/QD-BCT approving the 2026 electricity generation price framework for wind power plants.
The maximum prices under the framework, exclusive of value-added tax (VAT), are differentiated by geographical region and project type as follows:
| Wind power plant type | Northern region | Central region | Southern region |
| Onshore wind power | 2,187.83 | 1,893.61 | 2,035.37 |
| Nearshore wind power | 2,126.92 | 2,126.92 | 2,126.92 |
Unit: VND/kWh.
Decision No. 2945/QD-BCT took effect on 5 November 2026.
Notably, the 2026 price framework continues to distinguish between onshore and nearshore wind power, while applying different price ceilings to onshore wind projects across geographical regions.
The applicable region must be determined based on the list of provinces and centrally governed cities specified in the appendix to Decision No. 2945/QD-BCT.
Legal note: The above price framework applies to power plant types falling within the scope of the Decision. It should not automatically be applied to offshore wind power projects or projects subject to specific pricing mechanisms.
2.2. Solar Power
On 5 November 2026, the Ministry of Industry and Trade issued Decision No. 2946/QD-BCT approving the 2026 electricity generation price framework for solar power plants.
The framework is differentiated according to three principal criteria: geographical region, plant type (ground-mounted or floating solar) and whether the plant is equipped with a battery energy storage system (BESS).
2.2.1. Solar power plants without battery energy storage systems
| Plant type | Northern region | Central region | Southern region |
| Ground-mounted solar | 1,591.02 | 1,293.17 | 1,104.32 |
| Floating solar | 1,939.74 | 1,560.63 | 1,340.21 |
2.2.2. Solar power plants combined with battery energy storage systems
| Plant type | Northern region | Central region | Southern region |
| Ground-mounted solar with BESS | 1,813.48 | 1,469.90 | 1,254.97 |
| Floating solar with BESS | 2,120.31 | 1,703.21 | 1,461.39 |
Unit: VND/kWh. All figures represent maximum prices and are exclusive of VAT.
For solar power plants combined with battery energy storage systems, the parameters used in calculating the price framework include:
- The minimum capacity of the battery energy storage system must equal 10% of the solar power plant’s capacity; and
- The storage/discharge duration is two hours.
Decision No. 2946/QD-BCT took effect on 5 November 2026.
The inclusion of BESS configurations in the price-setting methodology reflects the development of electricity pricing mechanisms towards recognising the role of energy storage systems in regulating output, supporting power system operations and enhancing the integration of renewable energy sources.
Legal note: Investors should verify the applicable technical configuration requirements, storage capacity, discharge duration and project scope before using the price levels applicable to solar power plants with BESS in their financial models.
2.3. Hydropower
Under Decision No. 1127/QD-BCT dated 14 May 2026, the Ministry of Industry and Trade approved the following 2026 electricity generation price framework for hydropower plants:
| Item | Price |
| Minimum price | VND 0/kWh |
| Maximum price | VND 1,110/kWh |
The above maximum price excludes the water resource tax, forest environmental service fees, the fee for the right to exploit water resources and VAT.
Under Decision No. 1127/QD-BCT, EVN and the power generator shall rely on the approved price framework to negotiate and enter into PPAs in accordance with the regulations governing the methodology for determining electricity generation service prices.
The above hydropower price framework must be distinguished from the Avoided Cost Tariff mechanism applicable to eligible small hydropower plants. These two mechanisms have different scopes of application and pricing methodologies.
2.4. Biomass Power
Biomass power is subject to a specific pricing mechanism governed by Decision No. 24/2014/QD-TTg dated 24 March 2014, as amended and supplemented by Decision No. 08/2020/QD-TTg dated 5 March 2020.
Under Decision No. 08/2020/QD-TTg, the electricity purchase prices at the delivery point applicable to biomass power projects are as follows:
| Project type | Electricity purchase price |
| Combined heat and power (CHP) projects | VND 1,634/kWh |
| Non-CHP projects | VND 1,968/kWh |
These prices correspond to 7.03 US cents/kWh and 8.47 US cents/kWh, respectively, based on the reference exchange rate at the time Decision No. 08/2020/QD-TTg was issued.
The electricity purchase prices are exclusive of VAT and are adjusted in accordance with fluctuations in the USD/VND exchange rate as prescribed by law.
In addition to the feed-in tariff (FIT) mechanism, the Ministry of Industry and Trade issued Decision No. 1008/QD-BCT dated 14 April 2025 approving the 2025 electricity generation price framework for biomass power plants, as follows:
- Minimum price: VND 0/kWh;
- Maximum price: VND 2,091.74/kWh.
However, particular attention should be paid to Article 3 of Decision No. 1008/QD-BCT, which provides that the 2025 price framework shall apply from the date on which Decision No. 24/2014/QD-TTg and Decision No. 08/2020/QD-TTg cease to be effective.
Accordingly, the issuance of Decision No. 1008/QD-BCT should not be interpreted as automatically terminating the biomass power FIT mechanism for all projects.
As of 12 November 2026, when determining the electricity purchase price applicable to a specific project, investors should verify the validity of the relevant FIT decisions, the commercial operation date, the applicable technology type and relevant transitional provisions.
2.5. Waste-to-Energy Power
The electricity pricing mechanism for power generation projects using solid waste is governed by Decision No. 31/2014/QD-TTg dated 5 May 2014 and relevant implementing instruments.
Under Article 14 of Decision No. 31/2014/QD-TTg, the electricity purchase prices at the delivery point, exclusive of VAT, are as follows:
| Project type | Electricity purchase price |
| Direct combustion of solid waste | VND 2,114/kWh |
| Use of gas recovered from solid waste landfills | VND 1,532/kWh |
These prices correspond to 10.05 US cents/kWh and 7.28 US cents/kWh, respectively, and are adjusted in accordance with fluctuations in the USD/VND exchange rate as prescribed by law.
In addition to the above pricing mechanism, the Ministry of Industry and Trade issued Decision No. 1251/QD-BCT dated 6 May 2025 approving the 2025 electricity generation price framework for waste-to-energy power plants.
Under this Decision, the maximum price under the electricity generation price framework for solid waste power plants is:
VND 2,575.18/kWh (exclusive of VAT).
Similar to the biomass power mechanism, Article 3 of Decision No. 1251/QD-BCT provides that the 2025 electricity generation price framework shall apply from the date on which Decision No. 31/2014/QD-TTg ceases to be effective.
Therefore, the determination of electricity purchase prices for waste-to-energy projects must take into account the validity of the FIT mechanism, the scope of application of Decision No. 1251/QD-BCT and relevant transitional provisions.
Note: The amount of VND 2,575.18/kWh represents the price ceiling under the 2025 framework. It is not automatically the electricity purchase price applicable to every waste-to-energy power plant in 2026. As of the update date, no official decision approving the 2026 electricity generation price framework for waste power plants had been identified to replace the 2025 framework.
2.6. Small Hydropower – Avoided Cost Tariff
Unlike hydropower plants subject to the general electricity generation price framework, small hydropower plants satisfying statutory conditions may be eligible for the Avoided Cost Tariff mechanism.
The relevant legal instruments include:
- Circular No. 10/2025/TT-BCT dated 1 February 2025;
- Circular No. 20/2026/TT-BCT dated 17 April 2026, amending and supplementing Circular No. 10/2025/TT-BCT; and
- Decision No. 392/QD-BCT dated 6 March 2026, promulgating the 2026 Avoided Cost Tariff applicable to small hydropower plants.
Under this mechanism, electricity purchase prices are determined based on the Avoided Cost Tariff, taking into account energy price and capacity price components, as well as differences in seasons and time-of-use periods in accordance with applicable regulations.
The 2026 tariff applies from 1 January 2026.
Notably, Circular No. 20/2026/TT-BCT, which took effect on 2 June 2026, amended and supplemented certain provisions on the methodology for determining and applying the Avoided Cost Tariff to small renewable energy power plants.
Investors should note that:
- Not all hydropower plants are eligible for the Avoided Cost Tariff;
- The plant’s capacity, type and eligibility conditions must be determined in accordance with Circular No. 10/2025/TT-BCT and its amendments; and
- Actual payment prices must be determined based on the applicable tariff corresponding to the relevant season, time-of-use period and metered electricity output.
Accordingly, when assessing the financial viability of a small hydropower project, investors should use the 2026 Avoided Cost Tariff rather than automatically applying the maximum price of VND 1,110/kWh under the general hydropower price framework.
2.7. Natural Gas-Fired Thermal Power
Under Decision No. 1882/QD-BCT dated 23 July 2026, the Ministry of Industry and Trade approved the 2026 electricity generation price framework applicable to combined-cycle gas turbine power plants using natural gas.
The approved electricity generation price framework is as follows:
- Minimum price: VND 0/kWh;
- Maximum price: VND 3,410.64/kWh.
The maximum price is exclusive of VAT.
The framework is determined based on the technical parameters of a standard power plant, natural gas prices, fuel transportation costs and the applicable exchange rate.
2.8. LNG-Fired Thermal Power
On 9 November 2026, the Ministry of Industry and Trade issued Decision No. 2972/QD-BCT approving the 2026 electricity generation price framework applicable to combined-cycle gas turbine power plants using liquefied natural gas (LNG).
The approved electricity generation price framework is as follows:
- Minimum price: VND 0/kWh;
- Maximum price: VND 3,453.72/kWh.
The maximum price is exclusive of VAT.
The price is determined based on parameters including calculated capacity, heat rate, imported LNG prices, LNG transportation costs, storage and regasification costs, and the applicable exchange rate.
Decision No. 2972/QD-BCT took effect on 9 November 2026.
2.9. Coal-Fired Thermal Power
With respect to coal-fired thermal power, the Ministry of Industry and Trade has issued separate decisions approving the 2026 electricity generation price frameworks for different groups of power plants.
2.9.1. Coal-fired power plants wholly owned by state-owned enterprises and financed entirely using the enterprises’ equity capital
Under Decision No. 1692/QD-BCT dated 7 July 2026, the Ministry of Industry and Trade approved the 2026 electricity generation price framework for coal-fired thermal power plants falling within the scope of the Decision: The 2026 electricity generation price range is from VND 0 to VND 2,218.95/kWh (exclusive of value-added tax (VAT)), with the maximum price set at VND 2,218.95/kWh
2.9.2. Coal-fired power plants with a capacity of less than 200 MW
Under Decision No. 2887/QD-BCT dated 30 October 2026, the 2026 electricity generation price framework was approved as follows:
- Minimum price: VND 0/kWh;
- Maximum price: VND 2,230.51/kWh.
The maximum price is exclusive of VAT.
It should be noted that the coal-fired thermal power price framework is divided according to different groups of power plants and investment conditions. Accordingly, the price applicable to plants with a capacity of less than 200 MW should not be applied to plants belonging to other groups.
2.10. Battery Energy Storage Systems (BESS)
On 11 November 2026, the Ministry of Industry and Trade issued Decision No. 2987/QD-BCT approving the 2026 electricity generation price framework applicable to battery energy storage systems.
Under the Decision:
- Maximum price: VND 3,209.98/kWh;
- The above price is exclusive of VAT.
The price framework applies to battery energy storage systems falling within the scope of Circular No. 62/2025/TT-BCT.
This is a separate pricing mechanism for energy storage systems and should be distinguished from the price framework applicable to solar power plants combined with BESS under Decision No. 2946/QD-BCT.
3. Summary of Electricity Generation Price Frameworks and Pricing Mechanisms
The following table summarises the notable prices and pricing mechanisms issued or prescribed for different types of power generation sources as of 12 November 2026.
| Power generation type | Principal decision | Maximum price / Notable price |
| Onshore wind – Northern region | 2945/QD-BCT | 2,187.83 |
| Onshore wind – Central region | 2945/QD-BCT | 1,893.61 |
| Onshore wind – Southern region | 2945/QD-BCT | 2,035.37 |
| Nearshore wind | 2945/QD-BCT | 2,126.92 |
| Ground-mounted solar – Northern region, without BESS | 2946/QD-BCT | 1,591.02 |
| Ground-mounted solar – Central region, without BESS | 2946/QD-BCT | 1,293.17 |
| Ground-mounted solar – Southern region, without BESS | 2946/QD-BCT | 1,104.32 |
| Floating solar – Northern region, without BESS | 2946/QD-BCT | 1,939.74 |
| Floating solar – Central region, without BESS | 2946/QD-BCT | 1,560.63 |
| Floating solar – Southern region, without BESS | 2946/QD-BCT | 1,340.21 |
| Ground-mounted solar with BESS – Northern region | 2946/QD-BCT | 1,813.48 |
| Ground-mounted solar with BESS – Central region | 2946/QD-BCT | 1,469.90 |
| Ground-mounted solar with BESS – Southern region | 2946/QD-BCT | 1,254.97 |
| Floating solar with BESS – Northern region | 2946/QD-BCT | 2,120.31 |
| Floating solar with BESS – Central region | 2946/QD-BCT | 1,703.21 |
| Floating solar with BESS – Southern region | 2946/QD-BCT | 1,461.39 |
| Hydropower | 1127/QD-BCT | 1,110 |
| Biomass power | 1008/QD-BCT (2025) | 2,091.74 |
| Solid waste power | 1251/QD-BCT (2025) | 2,575.18 |
| Natural gas-fired thermal power | 1882/QD-BCT | 3,410.64 |
| LNG-fired thermal power | 2972/QD-BCT | 3,453.72 |
| Coal-fired thermal power below 200 MW | 2887/QD-BCT | 2,230.51 |
| Battery energy storage systems | 2987/QD-BCT | 3,209.98 |
Unit: VND/kWh. The figures represent maximum prices under the electricity generation price frameworks and are exclusive of VAT, unless otherwise indicated.
Note: For biomass power and solid waste power, the figures shown in the table are the price ceilings under the respective 2025 approval decisions. Their application is conditional upon the relevant FIT decisions ceasing to be effective. These figures should not be interpreted as 2026 prices that have automatically replaced all previous pricing mechanisms. For small hydropower, investors should refer to the 2026 Avoided Cost Tariff rather than the general hydropower price ceiling.
4. Key Legal Considerations for Businesses and Investors
4.1. Distinguishing the Electricity Generation Price Framework from the Actual Electricity Purchase Price
The electricity generation price framework approved by the Ministry of Industry and Trade serves as the basis for the parties to negotiate and determine electricity generation prices and enter into PPAs.
The fact that a project belongs to a type of power plant for which a price framework has been approved does not mean that the project is automatically entitled to the maximum price.
The actual electricity purchase price also depends on the methodology for determining electricity generation service prices, technical parameters, investment costs, operating costs, contractual terms and other relevant legal requirements.
4.2. Identifying the Correct Pricing Mechanism for Each Project
Investors should distinguish between the following mechanisms:
- Annual electricity generation price frameworks approved by the Ministry of Industry and Trade;
- Feed-in tariff (FIT) mechanisms under decisions issued by the Prime Minister;
- Avoided Cost Tariffs applicable to eligible small renewable energy power plants;
- Transitional pricing mechanisms applicable to projects satisfying statutory conditions; and
- Special electricity trading mechanisms, including direct power purchase agreements (DPPA).
Incorrect identification of the applicable pricing mechanism may result in significant inaccuracies in project revenue modelling and investment viability assessments.
4.3. Reviewing Power Purchase Agreements and Transitional Provisions
For projects that have already entered into PPAs or are currently negotiating PPAs, investors should review:
- The execution date and term of the PPA;
- The commercial operation date (COD);
- The mechanism for determining and adjusting electricity purchase prices;
- The conditions for applying FITs or electricity generation price frameworks;
- Change-in-law provisions; and
- Conditions for extending, amending or entering into new PPAs.
In particular, for biomass power and waste-to-energy projects, investors should carefully review the transitional conditions between the FIT mechanism and the electricity generation price framework under the relevant approval decisions.
4.4. Assessing the Impact on Project Investment Viability
Electricity generation price frameworks directly affect a project’s ability to raise financing, internal rate of return (IRR), net present value (NPV), debt repayment capacity and overall financial structure.
Accordingly, investors should develop financial models based on prices that are realistically capable of being negotiated and applied, rather than relying solely on the maximum prices under the relevant electricity generation price framework.
5. Conclusion
As of 12 November 2026, Vietnam’s electricity generation pricing framework continues to evolve towards a more differentiated approach based on technology, capacity, geographical location and the operational characteristics of each type of power plant.
Notably, in November 2026, the Ministry of Industry and Trade issued new decisions on the electricity generation price frameworks for wind power, solar power and battery energy storage systems, while also updating the frameworks for LNG-fired thermal power and coal-fired thermal power plants with capacities below 200 MW.
For biomass power, waste-to-energy and small hydropower projects, the applicable electricity purchase prices must be determined by reference to the relevant FIT mechanisms, electricity generation price frameworks or Avoided Cost Tariffs, together with the applicable eligibility conditions and transitional provisions.
For investors and businesses operating in the energy sector, correctly identifying the applicable pricing mechanism, verifying the validity of relevant legal instruments and assessing project-specific eligibility requirements are essential to ensuring the feasibility of investment plans, PPA negotiations and legal risk management.
LEGAL BASIS AND REFERENCES
- Law on Electricity No. 61/2024/QH15 dated 30 November 2024.
- Circular No. 09/2025/TT-BCT dated 1 February 2025.
- Circular No. 10/2025/TT-BCT dated 1 February 2025.
- Circular No. 12/2025/TT-BCT dated 1 February 2025.
- Circular No. 20/2024/TT-BCT dated 10 October 2024.
- Circular No. 20/2026/TT-BCT dated 17 April 2026.
- Circular No. 54/2025/TT-BCT dated 21 November 2025.
- Circular No. 62/2025/TT-BCT dated 10 December 2025.
- Decision No. 24/2014/QD-TTg dated 24 March 2014.
- Decision No. 08/2020/QD-TTg dated 5 March 2020.
- Decision No. 31/2014/QD-TTg dated 5 May 2014.
- Decision No. 1008/QD-BCT dated 14 April 2025.
- Decision No. 1251/QD-BCT dated 6 May 2025.
- Decision No. 392/QD-BCT dated 6 March 2026.
- Decision No. 1127/QD-BCT dated 14 May 2026.
- Decision No. 1692/QD-BCT dated 7 July 2026.
- Decision No. 1882/QD-BCT dated 23 July 2026.
- Decision No. 2887/QD-BCT dated 30 October 2026.
- Decision No. 2945/QD-BCT dated 5 November 2026.
- Decision No. 2946/QD-BCT dated 5 November 2026.
- Decision No. 2972/QD-BCT dated 9 November 2026.
- Decision No. 2987/QD-BCT dated 11 November 2026.
Disclaimer
This article is prepared based on legal instruments and information published or available for reference as of 12 November 2026. The applicability of the relevant regulations to each project should be assessed based on the project’s legal documents, power purchase agreement and applicable transitional provisions.
For legal advice on electricity generation prices, power sector activities and power purchase agreements, please contact BFSC Law Firm in Hanoi:
Office: Suite 1040, 10th Floor, Pacific Place Building, 83B Ly Thuong Kiet Street, Cua Nam Ward, Hanoi, Vietnam.
Tel: (+84-24) 7108 2688 | Email: [email protected]