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NATIONAL ASSEMBLY
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THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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Law No. 61/2024/QH15
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Hanoi, November 30, 2024
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LAW
ON ELECTRICITY
Pursuant to the
Constitution of the Socialist Republic of Vietnam;
The National Assembly
hereby promulgates the Law on Electricity.
Chapter
I
GENERAL
PROVISIONS
Article
1. Scope
This Law provides for
electricity development planning and investment in construction of electricity
projects; development of renewable energy power and new energy power;
electricity licenses; competitive electricity market, electricity trading
activities; dispatch and operation of national power system; protection of
electricity works and safety in the field of electricity; responsibilities, rights
and obligations of agencies, organizations and individuals in electricity
activities and electricity use; state management of electricity.
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This Law applies to
agencies, organizations and individuals conducting electricity activities,
using electricity or engaged in other electricity-related activities in
Vietnam.
Article
3. Application of laws
1. Where regulations on
any of the following issues in this Law are different from those laid down in other
laws promulgated before the effective date of this Law, regulations of this Law
shall apply:
a) Authority to approve
investment guidelines of electricity projects as prescribed in clauses 2, 3 and
4 Article 13 of this Law;
b) Specific regulations
on investment in construction of emergency electricity projects and works as
prescribed in Article 15 of this Law;
c) Selection of investors
in electricity business investment projects as prescribed in Articles 18 and 19
of this Law;
d) Regulations on development
of offshore wind power as prescribed in Section 2 Chapter III of this Law.
2. Where a law
promulgated after the effective date of this Law contains specific regulations
on investment contradicting regulations of this Law, the former is required to
specify the cases to which its regulations apply and the cases to which this
Law applies.
Article
4. Definitions
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1. “safety of
hydropower works” means any solution for preventing and combating the
impacts of hazardous factors to hinder harmful impacts and ensure safety of
dams, reservoirs, energy routes, hydropower plants and auxiliary works in the
process of surveying, designing, constructing, managing, exploiting and
operating hydropower works.
2. “electrical safety”
means any solution for preventing and combating the impacts of hazardous
factors to hinder harmful impacts and ensure safety for persons, equipment, and
works in the process of producing, transmitting, distributing, and using
electricity.
3. “electricity
wholesaling” means the sale of electricity by one electric utility to
another for resale to a third party.
4. “electricity
retailing” means the sale of electricity by one electric utility to
electricity consumers.
5. “avoided cost
tariff” means the prices calculated according to the avoided costs on the
national power system per 01 kWh fed to the national grid by a small renewable
energy power plant.
6. “electricity price
cross-subsidy” means a mechanism for fixing a retail electricity price for
each group of electricity consumers to apply a unified electricity retail
tariff.
7. “voltage level” means
one of the values of nominal voltage used in the power system, including:
a) Low voltage which is a
nominal voltage up to 01 kV;
b) Medium voltage which
is a nominal voltage above 01 kV and not exceeding 35 kV;
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d) Ultra high voltage
which is a nominal voltage above 220 kV.
8. “avoided
cost” means the cost of generating 01 kWh by generating sets with
the highest cost in the national power system which could have been avoided if
01 kWh was bought from an alternative small hydropower plant.
9. “electricity work” means
a combination of facilities, machinery, equipment and construction structures
in direct service of electricity generation, electricity transmission,
electricity distribution, power system dispatch, electricity trading and system
for protection of electricity works.
10. “electricity retail
tariff structure” means a table of percentages (%) of the average retail
electricity prices intended for calculating the specific retail electricity
price for each group of electricity consumers.
11. “ancillary
service” means any technical service necessary to maintain the stable and
reliable operation of the national power system, including frequency
adjustment, quick start, must-run operation, voltage adjustment, black start
and other related technical services as prescribed by the Minister of Industry
and Trade.
12. “electricity
project” means an investment project as prescribed by law, including a set
of proposals for use of capital use for investment, construction, renovation
and business of electricity works in a specific locality or region and within a
specified period of time. Power source project means a project on investment in
construction of a power plant or electrical grid synchronously connected to the
national power system (if any).
13. “new energy power”
means power produced from one or more of the following sources:
a) Hydrogen produced from
the power sources specified in points a, b, c and d clause 14 of this Article
(hereinafter referred to as “green hydrogen”);
b) Ammonia produced from
the power sources specified in points a, b, c and d clause 14 of this Article
(hereinafter referred to as “green ammonia”);
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14. “renewable energy
power” means power produced from one or more of the following primary
energy sources:
a) Solar energy;
b) Win energy;
c) Ocean energy,
including tides, waves and ocean currents;
d) Geothermal energy;
d) Energy obtained from
water power, including hydropower;
e) Biomass energy
including biofuels and other forms of energy derived from plants;
g) Energy from waste
generated from production, business and daily activities, except for waste
generated from production and business processes using fossil fuels and waste
identified as hazardous according to regulations of law on environmental
protection;
h) Other forms of
renewable energy as prescribed by law.
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16. “power system
dispatching” means the commanding and control of the process of electricity
generation, electricity transmission, electricity distribution within the
national power system according to determined technical processes, regulations
and operation method.
17. “regulation of
electricity market transactions” means the management and regulation of
transactions in trading of electricity and ancillary services on the
competitive electricity market.
18. “electricity
regulation” means the impact exerted by the State on electricity activities
and competitive electricity market with a view to supplying electricity safely,
stably and qualitatively, using electricity economically and efficiently and
ensuring fairness, transparency and law compliance.
19. “electric utility”
means an organization or individual carrying out electricity generation,
electricity transmission, electricity distribution, power system dispatching
and operation, regulation of electricity market transactions, electricity
wholesaling and retailing or other relevant activities.
20. “average retail
electricity price” means the retail electricity price being defined
according to the principle of calculating sum of electricity trading and
production cost and average profit level for 01 kWh of commercial electricity
from time to time.
21. “wholesale
electricity price” means the price at which the electricity of an
electric utility is sold to another for resale to the third party.
22. “retail
electricity price” means the price at which the electricity of an electric
utility is sold to electricity consumers.
23. “electricity
prices and electricity-related service prices” means wholesale electricity
prices, retail electricity prices and prices of electricity generation service,
electricity transmission service, ancillary services for power system, power
system dispatch and operation service, electricity market transaction
regulation service and electricity distribution service.
24. “prices of
ancillary services for power system” means the prices which an electricity
generation unit charges for ancillary services for power system.
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26. “price of power
system dispatch and operation service” means the price charged by a power
system dispatch unit to perform the tasks related to power system dispatch and
operation.
27. “price of
electricity market transaction regulation service” means the price charged
by an electricity market transaction regulation unit to perform the tasks
related to competitive electricity market transaction regulation.
28. “price of
electricity distribution service” means the price charged by an electricity
distribution unit to conduct activities related to electricity distribution.
29. “price of
electricity transmission service” means the price charged by an electricity
transmission unit to conduct activities related to electricity transmission.
30. “national power system”
means a system of electricity generating equipment, electrical grids and
auxiliary equipment which are connected and uniformly controlled nationwide.
31. “energy storage
system” means a set of devices for receiving electricity from power
sources, storing energy and generating electricity.
32. “electricity
activities” means activities of agencies, organizations or individuals in
the fields of electricity development planning, investment in electricity
development, electricity generation, electricity transmission, electricity
distribution, power system dispatch and operation, regulation of competitive
electricity market transactions, electricity wholesaling and retailing and
other relevant activities.
33. “electricity
forward contract” means a written agreement between parties to buy or sell
electricity at a specific future time at an agreed price.
34. “power purchase
agreement (PPA)” means a written agreement between an electricity buyer and
an electricity seller that is intended for the purchase and sale of
electricity.
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36. “electricity
futures contract” means an electricity forward contract whose main terms
are standardized as per regulations of this Law and listed on a central
exchange in the forward electricity market.
37. “electricity
consumer” means an agency, organization or individual that buys electricity
for use and does not resell the electricity bought to another agency,
organization or individual.
38. “large electricity
consumer” means a consumer that uses electricity with large power and
consumption as prescribed by the Minister of Industry and Trade in a manner
that is appropriate to each period of power system development.
39. “electricity price
bracket” means a range between the minimum price and the maximum price.
40. “wholesale
electricity price bracket” means a range between the minimum wholesale
electricity price and the maximum wholesale electricity price.
41. “electricity
generation price bracket” means the average electricity generation price
bracket over the life cycle of a power plant project which ranges between the
minimum average price and the maximum average price.
42. “inspection of
technical safety of electrical equipment and instruments” means a technical
activity following a certain process in order to evaluate and confirm the
conformity of the electrical equipment and tools in respect of their safety
with the corresponding standards and technical regulations on electrical safety
before putting them into use, during their use and operation.
43. “electrical grid” means
a system of overhead power lines or underground power cables, transformers and
auxiliary equipment for electricity transmission, including transmission grid
and distribution grid.
44. “power plant” means
a combination of one or more equipment, machinery and structures intended for
producing electricity.
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46. “long-term minimum
contracted electricity output” means the lowest electricity output
specified in the PPA, electricity forward contract, options contract to buy or
sell electricity or electricity futures contract.
47. “competitive
electricity market” means where participants in the competitive electricity
market compete to buy or sell electricity or provide services through the
national power system to optimize economic efficiency, ensure transparency and
improve the quality of electricity supply.
48. “spot electricity
market” means a market where electricity is bought or sold in cycles of
transactions conducted by the electricity market transaction regulation unit
according to regulations at competitive electricity market levels.
49. “forward
electricity market” means a market where electricity output specified in
the PPA, electricity forward contract, options contract to buy or sell
electricity or electricity futures contract is bought or sold.
50. “electricity
metering devices” means those used for measuring the power, amount of
electric energy, electric current, voltage, frequency, power factor, including
electricity meters, and accompanying equipment and accessories.
51. “electricity
theft” means an act of illegally taking electricity without mater meters,
tampering with an electricity meter and other electrical equipment related to
electricity metering, deliberately recording or collaborating in recording
electricity meter readings and other acts of deliberately reflecting incorrect
electricity consumption data.
Article
5. State’s policies on electricity development
1. The State promulgates
policies on development and investment in the construction of the electricity
sector to ensure the requirement of being an important infrastructure industry
so as to serve the socio-economic development and people's life, sustainable
development on the basis of optimal exploitation of all resources, meet the
demand for electricity to serve the people's life and socio-economic
development with stable, safe and economic quality, civilized services,
environmental protection, thus contributing to the maintenance of national
defense, security and energy security.
2. The State holds
monopoly in the following activities for the purpose of ensuring national
energy security:
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b) Investing in the
construction and operation of projects on nuclear power plants, multi-purpose
strategic hydropower plants and important transmission grids with a voltage of
220 kV or more according to a list decided by the Prime Minister;
c) Operating transmission
grids, except for transmission grids invested in and built by non-State
economic sectors.
3. Policies on
development of electricity in rural areas, ethnic minority areas, mountainous
areas and border areas, on islands and in extremely disadvantaged areas
include:
a) Prioritizing the
allocation of state budget, mobilizing domestic and foreign resources for
investment in developing power sources and electrical grids to ensure safe,
regular and reliable electricity supply to households and serve socio-economic
development, national defense and security in the locality;
b) Investment and
financial incentives and other incentives and support for domestic and foreign
organizations and individuals building power source works and electrical grids,
and supply of commercial electricity to households in a sustainable and
effective manner.
4. All economic sectors
are attracted to participate in investment in the construction of power source
works and electrical grids according to power development planning (hereinafter
referred to as “PDP”), electricity supply network development schemes in
provincial planning, plans to implement PDP, electricity generation and
distribution, electricity wholesaling and retailing. Non-State economic sectors
are permitted to operate electrical grids which they invest and build in
accordance with law.
5. Electricity projects
funded by official development assistance (ODA) capital, concessional loans
from foreign donors of enterprises 100% of charter capital of which is held by
the State (hereinafter referred to as “wholly state-owned enterprises”) or
enterprises 100% of charter capital of which is held by these enterprises
acting as investors on the State's investment priorities list may receive
on-lent loans and the on-lending agencies shall not incur any credit risk in
accordance with the Law on Public Debt Management.
6. A mechanism is in
place to develop electricity projects appropriate to the level of the
competitive electricity market on the basis of ensuring national energy
security and national financial security, guarding the interests of the State
and the People, and ensuring macroeconomic stability from time to time,
including: long-term minimum contracted electricity output and application
period, principles of calculating electricity prices, guarantee for execution
of investment projects, and the duration of the policy in each case.
7. Power plants using
fossil fuels are encouraged to carry out the conversion to low-emission fuel
sources, install carbon capture equipment and systems to reduce emissions into
the environment, protecting the interests of the State, the legitimate rights
and interests of enterprises and employees; to develop coal-fired power at a
reasonable level in the direction of prioritizing large-capacity and
high-efficiency sets using advanced and modern technology; ensuring compliance
with the law on environmental protection.
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a) Priority is given to the
development of gas-fired thermal power using domestic gas sources and rapid
development of gas-fired thermal power using liquefied natural gas to gradually
turn gas-fired power into an important source of electricity supply, thereby
supporting the regulation of the power system;
b) A mechanism is in
place to mobilize thermal power projects using domestic natural gas to the
maximum according to the gas supply capacity and fuel constraints to maintain
the harmony of the overall interests of the country;
c) A mechanism is in
place to develop thermal power plants using liquefied natural gas as prescribed
in clause 6 of this Article; priority is given to the development of power
projects associated with the common use of infrastructure of liquefied natural gas
import terminals and gas pipelines to reduce electricity production costs.
9. Regarding policies on
development of renewable energy power and new energy power:
a) Renewable energy power
and new energy power are develop in a manner that is suitable for the capacity
for ensuring the safety power system safety at reasonable electricity prices,
in sync with the development of electrical grids and the PDP and appropriate to
the technological level and human resources, and meets Vietnam's emission
reduction targets from time to time;
b) Mechanisms for
providing incentives and support are tailored for each type of power source,
including small hydropower projects determined in accordance with law, in
accordance with the requirements for socio-economic development from time to
time. Policies on incentives and supports and breakthrough mechanisms are also
tailored for the development offshore wind power; the investment in projects
participating in the competitive electricity market is encouraged.
10. Regarding policies on
nuclear power development:
a) Nuclear PDP must be
contiguous, synchronous and consistent with electricity development planning to
achieve the objective of ensuring electricity supply security.
b) Investment in the
construction, operation, termination of operation and safety assurance of
nuclear power plants must comply with regulations of the Law on Atomic Energy
and other relevant laws.
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a) Separate the functions
of production, business and service provision from the functions of state
management; separate activities with natural exclusivity and state monopoly
from competitive activities in the power generation line to form independent
service providers, form many power generating units and many electricity
wholesalers and retailers so as to increase the number of participants and
boost the efficiency of the electricity market;
b) Focus on the core
sectors and strengths of state-owned enterprises operating in the electricity
sector; optimize the use of resources and increase business value; supply
electricity to islands, border areas, disadvantaged areas and extremely
disadvantaged areas, and ensure national defense and security.
12. Regarding policies on
electricity prices and electricity-related service prices:
a) Ensure reasonable and
valid reflection of electricity production and trading expenses of electric
utilities; enable economic sectors to invest in electricity development with
reasonable profits, save energy resources, use forms of renewable energy and
new forms of energy in electricity activities, contributing to promoting
socio-economic development, especially in rural areas, ethnic minority areas, mountainous
areas and border areas, on islands and in extremely disadvantaged areas with;
b) The electricity
selling price shall comply with the State-regulated market mechanism in a
manner that is suitable for the level of the competitive electricity market;
c) Electricity prices
shall be set in such a manner as to encourage efficient and economical use of
electricity;
d) Implement a rational
and gradually decreasing electricity retail tariff structure, progress towards
the elimination of the electricity price cross-subsidy among groups of
consumers who do not participate in the competitive retail electricity market
when they is yet to be eligible to participate in or do not choose to
participate in electricity trading on the competitive retail electricity market;
dd) Gradually reduce and
progress towards the elimination the electricity price cross-subsidy among
consumer groups and regions in a manner that is appropriate to the level of the
competitive electricity market;
e) Retain the right to
self-determine electricity purchasing prices and electricity selling prices in
a manner that does not exceed the electricity price bracket and electricity
retail tariff structure prescribed by the State;
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h) Tailor an appropriate
electricity price mechanism for specific groups of consumers under the State's
guidelines in a way that is suitable for the socio-economic development
situation from time to time.
13. Regarding State’s
subsidies on electricity bills:
a) The state budget shall
provide subsidies on electricity bills for domestic purposes for poor
households and households with social policies according to the criteria and
mechanisms prescribed by the Prime Minister in accordance with the
socio-economic situation from time to time;
b) The Government shall
promulgate a plan to reduce electricity bills in case of incidents or disasters
in accordance with the Law on Civil Defense in order to stabilize
socio-economic development.
Article
6. Responsibility for state management of electricity
1. The Government shall perform
uniform state management of electricity nationwide.
2. The Ministry of
Industry and Trade shall act as a conduit to assist the Government in
performing uniform state management of electricity.
3. Ministries and
ministerial agencies shall, within their jurisdiction, cooperate with the
Ministry of Industry and Trade in performing state management of electricity in
accordance with this Law and as assigned by the Government.
4. People’s Committees at
all levels shall, within their jurisdiction, perform state management of
electricity in their localities.
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1. International
cooperation in the electric power sector must be consistent with Vietnam's
foreign policies and guidelines; adhere to the principles of peace,
cooperation, friendship and mutual development on the basis of respect for
national independence, sovereignty, territorial integrity, non-interference in
each other's internal affairs, equality and mutual benefit and conform to the
Constitution and laws of Vietnam and treaties to which the Socialist Republic
of Vietnam is a signatory.
2. International
cooperation in the electric power sector shall mainly include:
a) Promoting international
cooperation in technology transfer, research and development in the electric
power sector;
b) Providing training to
improve quality of human resources in the electric power sector;
c) Promoting cooperation
in financial investment and exchange of information and data in the electric
power sector and participating in international agreements and treaties in the
electric power sector in accordance with law.
Article
8. Application of science and technology and development of manufacturing industry in the electric power sector
1. Application of science
and technology in the electric power sector and electricity use is meant to
save and increase the efficiency of energy sources, protect the environment,
protect the protection corridors of electricity works, ensure electrical safety
and safety of hydropower dams and reservoirs.
2. Important items,
equipment and consulting services intended for maintaining continuous
electricity supply and ensuring national energy security must be produced and
supplied domestically at some stages. Encourage and support the development of
technological research, design, manufacturing, installation and service
industries in the electric power sector to meet domestic demand at the maximum,
aiming for export. Prioritize the development of electrical equipment
manufacturing and electrical services industries. Properly fulfil specific
requirements and targets on domestic content in the electric power industry.
Encourage the development of large-scale domestic enterprises having advanced
technology and capability to execute complex projects requiring high technical
requirements in the electric power sector, meeting international quality
standards.
3. Ministries,
ministerial agencies and People's Committees of provinces and central-affiliated
cities (hereinafter referred to as “provincial People's Committees”) shall,
within their jurisdiction, encourage the establishment of innovation centers in
the electric power sector at research and training institutions, organize the
formulation and implementation of national key science and technology programs
for research into, application and development of energy technology, focusing
on research into and manufacturing of energy equipment and application of forms
of renewable energy, new energy and smart energy, and energy saving; digital
transformation, management and operation of information systems, data and other
contents of scientific and technological applications in the electric sector.
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Article
9. Prohibited acts in electricity activities and electricity use
1. Conducting electricity
activities without the license as prescribed by this Law.
2. Electricity theft.
3. Theft of electrical
means and equipment.
4. Destroying electrical
means, equipment and works.
5. Using means,
equipment, flammable, explosive or corrosive substances and other acts that
cause damage or incidents to electricity works.
6. Cutting electricity
supply in contravention of laws.
7. Violating regulations
on protection of electricity works, electrical safety and safety of hydropower
dams and reservoirs.
8. Planting trees,
carrying out drilling, digging and filling operations, constructing works,
exploiting minerals, anchoring ships, discharging wastewater, corrosive
substances, flying kites and flying objects and other activities that violate
regulations of law on safety corridors of electricity works.
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10. Providing inaccurate
and opaque information that infringes upon the legitimate rights and interests
of agencies, organizations and individuals conducting electricity activities
and using electricity.
11. Hindering competent
agencies, organizations and individuals from repairing, renovating and
restoring electricity works, inspecting and supervising electricity activities
and use.
12. Causing troubles or
earning illegal profits in electricity activities and use.
Chapter
II
POWER
DEVELOPMENT PLANNING, ELECTRICITY SUPPLY NETWORK DEVELOPMENT SCHEMES AND
INVESTMENT IN CONSTRUCTION OF ELECTRICITY PROJECTS
Article
10. Power development planning, electricity supply network development schemes
1. PDP is the national
sector planning.
2. The electricity supply
network development plan is a content integrated into a provincial planning.
3. The formulation,
appraisal, approval, announcement, adjustment and implementary organization of
PDP, provincial planning, including contents of the electricity supply network
development scheme must comply with regulations of law on planning and this
Law.
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a) Ensure sufficient
electricity supply to serve the need for socio-economic development and
People's life;
b) Effectively exploit
and use domestic energy resources, ensuring sustainable development;
c) Generally optimize
factors including power sources, power transmission, distribution, economical
and efficient use of electricity, have an appropriate roadmap in tandem with
the sustainable exploitation and use of natural resources, environmental
protection and economic model transformation, and ensure national energy
security;
d) Make the energy
transition according to national objectives and commitments on the basis of
scientific and technological advances and development policies on renewable
energy and new energy;
dd) Make sure the
electrical grid system is synchronized with power sources, meeting the load
development needs of regions and localities.
5. Based on the power
source capacity and voltage level of the electrical grid, every competent
agency or competent organization shall formulate PDP and electricity supply
network development scheme in the provincial planning. PDP and electricity
supply network development schemes in provincial planning do not include the
following projects:
a) Power sources which
have no impact or minor impact on the national power system;
b) Power sources which
are not connected to or sold to the national power system, except electricity
export or import;
c) Low-voltage electrical
grids;
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6. The Government shall
elaborate clause 5 of this Article.
Article
11. Plan to implement the PDP, plan to implement the provincial planning
covering contents of the electricity supply network development scheme
1. The plan to implement
PDP must comply with regulations of law on planning and the following
requirements:
a) Closely follow the
objectives and orientations of the planning, concretize the tasks assigned in
the planning;
b) Ensure that power sources
are developed in a balanced manner by regions, progress towards the balance of
supply and demand within the regions; ensure feasibility, synchronization and
flexibility in the development of power sources and electrical grids in a way
that suits the national context and resources;
c) Determine the time for
putting projects into operation in two phases in the 10-year planning period
and the next 05-year projection for the vision period.
2. Contents of the plan
to implement the PDP must satisfy regulations of law on planning and the list
of electricity projects specified in point b clause 2 Article 5 of this Law
shall be determined to form as a basis for assigning a project to a wholly
state-owned enterprise or an enterprise 100% of charter capital of which is
held by this enterprise for construction investment.
3. Every provincial
People's Committee shall formulate and promulgate a plan to implement its
provincial planning in accordance with regulations of law on planning. Such
plan shall contain contents of the electricity supply network development
scheme to form a basis for implementing power projects and identifying
electrical grid projects in service of socio-economic development in the
national and public interests invested in by a wholly state-owned enterprise or
an enterprise 100% of charter capital of which is held by this enterprise.
Article
12. General regulations on investment in construction of electricity projects
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2. From time to time and
for each type of power source investment project, the Government shall
prescribe a mechanism for ensuring the consumption of domestically exploited
gas; the principle of pass-through of fuel prices to electricity prices;
long-term minimum contracted electricity output.
3. The Minister of
Industry and Trade shall regulate the principles of calculating electricity
prices for execution of electricity projects.
4. The Government shall regulate
criteria for determining electricity projects on the State's investment
priorities list in the electric power sector. Based on the criteria prescribed
by the Government, the Minister of Industry and Trade shall decide the list of
electricity projects on the State's investment priorities list specified in
clause 5 Article 5 of this Law.
Article
13. Guidelines for investment in electricity projects
1. Except for emergency
electricity projects specified in Article 14 of this Law and electricity projects
specified in clauses 2, 3 and 4 of this Article, the decision on investment or
approval for investment guidelines for electricity projects subject to decision
on investment or approval for investment guidelines must comply with
regulations of the Law on Public Investment, Law on Public - Private
Partnership Investment and Law on Investment.
2. Except for emergency
electrical grid projects specified in Article 14 of this Law, the approval for investment
guidelines for projects on investment in electrical grid with a voltage of 220
kV or lower passing through at least 02 provinces subject to approval for
investment guidelines under regulations of the Law on Investment shall be
granted as follows:
a) The People's Committee
of the province where the starting point of the transmission line is located
and determined under the name of the electrical grid project in the PDP or the
electricity supply network development scheme in its provincial planning has
the authority to grant approval for investment guidelines;
b) Applications for and
contents of appraisal of request for investment guideline approval shall comply
with regulations of Law on Investment;
c) Procedures for
granting investment guideline approval are the same as those for granting
investment guideline approvals for projects under the authority of provincial
People's Committees under the Law on Investment and shall comply with
regulations on procedures for consulting with relevant localities specified in
points d and dd of this clause;
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dd) Within 15 days from
the date of receipt of a sufficient dossier, the People's Committee(s) of the
remaining province(s) shall give their written opinions on the dossier on
proposal for investment guidelines of the project within the provincial-level
administrative boundaries and send written opinions to the provincial People's
Committee specified in point a of this clause. A written opinion must state an
agreement or a disagreement; in case of disagreement, it is necessary to
explicitly state the reason so as for the investor to complete the investment
guideline proposal dossier;
e) The investment
registration authority shall be determined following the investment guideline
approval granted by the provincial People's Committee specified in point a of
this clause.
3. For any low-voltage or
medium-voltage electrical grid investment project subject to investment
guideline approval by a provincial People's Committee:
a) Based on the
electricity supply network development scheme in the provincial planning,
proposals of electric utilities and investors, the provincial People's
Committee shall approve the list of low-voltage and medium-voltage electrical
grids under the decentralized authority to manage the PDP and electricity
supply network development scheme in the provincial planning;
b) The decision of the
provincial People's Committee specified in point a of this clause shall replace
the written investment guideline approval for each individual medium-voltage or
low-voltage electrical grid investment project and also serve as the basis for
land allocation, land lease or land repurposing.
4. The Government shall
elaborate clauses 2 and 3 of this Article; stipulate cases in which renewable
energy and new energy power business investment projects fall under the Prime
Minister's authority to issue investment guideline approval as specified in
clause 4 Article 31 of the Law on Investment.
Article
14. Emergency electricity projects and works
1. Emergency electricity
projects and works include:
a) Electricity projects
and works newly built or repaired or renovated in order to promptly overcome
consequences of natural disasters, disasters or diseases under the construction
law and other relevant laws;
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c) Projects and works for
construction of electrical grids, which play an important role in the transmission
of power source capacity between regions to prevent overload of the electrical
grid; in an urgent response to the assurance of national defense and security
or to the local socio-economic development;
2. The Government shall
regulate the principles and criteria for determining emergency electricity
projects and works specified in points b and c clause 1 of this Article on the
basis of ensuring the timely satisfaction of the requirements for handling
urgent issues for ensuring electricity supply security.
Article
15. Specific regulations on investment in construction of emergency electricity
projects and works
1. Emergency electricity
projects and works specified in points b and c clause 1 Article 14 of this Law
are eligible for certain specific regulations on construction and investment
below:
a) It is not required to
follow the procedures for approval for investment guidelines under the Law on
Investment and approval for forest repurposing but the principle of minimizing
the forest repurposing under the Forestry Law, especially natural forests must
be adhered to when building electricity projects.
The Prime Minister’s
decision specified in clause 2 of this Article shall replace the written
investment guideline approval as per the Law on Investment and also serve as
the basis for land allocation, land lease and land repurposing. For emergency
electricity projects and works requiring forest repurposing, the Prime
Minister's decision specified in clause 2 of this Article shall serve as a
written investment guideline approval under the Law on Investment and also a
written approval for forest repurposing under the Forestry Law; the Prime
Minister's decision must explicitly state the area of the forest that needs to
be repurposed for project implementation;
b) Those emergency
electricity projects and works are eligible for Government guarantees under the
Law on Public Debt Management; may be granted credit overextensions according
to the Prime Minister’s decision in case the total outstanding debt from credit
extension granted to enterprises and related persons has exceeded the limit
specified in the Law on Credit Institutions; may be exempted from guarantee for
execution of investment projects under the Law on Investment;
c) Investors in emergency
electricity projects and works are not required to follow procedures for
submission to their state ownership representative agency for approval of
contents related to investment projects, plans on capital raising and mortgage
of assets for loans in accordance with the Law on Management and Use of State
Capital invested in Production and Business at Enterprises;
d) Investors may decide
by themselves all tasks in construction investment activities, including:
assigning organizations and individuals to perform survey, design and
construction tasks and other necessary tasks to serve the construction of
emergency works; deciding the sequence of survey, design and construction;
deciding the supervision of construction and acceptance of construction works
to achieve the progress in construction of emergency works;
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e) After completing the
construction of a work, the investor must inspect and re-evaluate the quality
of the built work, provide warranty, complete the as-built documentation and
archive documents in accordance with the law on construction and the settlement
of the work in accordance with the law.
g) The mechanism
specified under clause 2 Article 12 of this Law may be applied.
2. The authority to
decide emergency electricity projects and works is as follows:
a) The Prime Minister
shall decide to approve the list of emergency electricity projects, power
source works and electrical grids specified in points b and c clause 1 Article
14 of this Law on the basis of the assessment and proposals of the Ministry of
Industry and Trade or provincial People's Committees under the decentralized
authority to manage planning eligible for specific mechanisms specified in this
Article, except for emergency electricity projects, power source works and
electrical grids using public investment capital or projects subject to
investment guideline approval by the National Assembly under the Law on
Investment;
b) The Prime Minister
shall decide to assign wholly state-owned enterprises or enterprises 100% of
charter capital of which is held by these enterprises to act as investors in emergency
electricity projects, power source works and electrical grids specified in
points b and c clause 1 Article 14 of this Law;
c) The authority to
decide the construction of emergency electricity projects and works specified
in point a clause 1 Article 14 of this Law shall comply with the law on
construction and other relevant laws.
Article
16. Contract dossiers on public-private partnership (PPP) projects on power
plants applying build-operate-transfer (BOT) contracts
A contract dossier on a PPP
project on power plant applying BOT contract comprises the documents in
accordance with the law on PPP Investment and the following documents:
1. PPA which is a written
agreement between an electricity buyer and an electricity seller being the
project enterprise;
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3. Domestic fuel supply
contract which is a written agreement between a domestic fuel supplier and a
project enterprise (if any);
4. Shared infrastructure
sharing contract which is a written agreement between an investor or developer
of the shared infrastructure and a project enterprise (if any).
Article
17. Development of electricity in rural areas, ethnic minority areas,
mountainous areas and border areas, on islands and in extremely disadvantaged
areas
1. Agencies,
organizations and individuals are permitted to use public investment capital,
equity, loans, PPP investment capital and other legal sources of capital as per
regulations of law to ensure electricity supply to rural areas, ethnic minority
areas, mountainous areas, border areas, islands and extremely disadvantaged
areas.
2. The State supports
behind-the-meter investment to supply electricity for domestic purposes to
households in rural areas, ethnic minority areas, mountainous areas and border
areas, on islands and in extremely disadvantaged areas, and households whose
houses are damaged by natural disasters, fires and explosions.
3. Upon making investment
in the construction of renewable energy sources, medium-voltage and low-voltage
grids to supply electricity for domestic use by households, production of
goods, socio-economic development and assurance of national defense and security,
investment incentives shall be offered according to regulations of the Law on
Investment. In case surplus electricity is fed back to the medium or low
voltage national grid, the surplus electricity price shall comply with the
Government’s regulations.
4. Investors in
behind-the-meter assets in households as specified in clauses 1 and 2 of this
Article shall transfer behind-the-meter assets to households for management and
use on their own terms.
5. The Government shall
elaborate clause 2 of this Article.
Article
18. Selection of investors in electricity business investment projects
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a) Investment projects
over which the State holds its monopoly as prescribed in points
a and b clause 2 Article 5 of this Law;
b) Hydropower plant
expansion projects and electrical grid renovation or upgradation projects for
which the existing investors owning projects are approved;
c) Electricity projects
approved by competent authorities on the basis of investment proposals of
wholly state-owned enterprises or enterprises 100% of charter capital of which
is held by these enterprises. The Prime Minister shall approve the list of
electricity projects not subject to investment guideline approval by the
National Assembly and are included in the PDP; provincial People's Committees
shall approve the list of electricity projects in the provincial planning;
d) Emergency power
projects the investors in which are selected as prescribed in clause 2 Article
15 of this Law;
dd) Offshore wind power
projects executed as prescribed in clause 2 Article 29 of this Law;
e) Other cases as
prescribed by the law on investment and the law on land.
2. Except the cases
specified in clause 1 of this Article, cases of selection of investors through
auction of land use rights shall comply with the land law.
3. Except the cases
specified in clause 1 of this Article, cases of bidding for selection of
investors in electricity investment business projects shall comply with Article
19 of this Law.
Article
19. Bidding for selection of investors in electricity business investment
projects
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2. Bid-winning
electricity price shall be the maximum electricity price as a basis for the
electricity buyer to negotiate the price of the PPA with the bid-winning
investor. The electricity buyer shall negotiate and conclude the PPA with the
bid-winning investor.
3. The Government shall
elaborate the following contents:
a) Cases where it is
required to organize bidding to select investors to implement electricity
business investment projects based on socio-economic development conditions
from time to time;
b) Specific requirements of
electricity business investment projects in the bidding documents for investor
selection;
c) The negotiation and
conclusion of business investment project contracts and PPAs with bid-winning
investors on the basis of safeguarding the interests of the parties.
Chapter
III
DEVELOPMENT
OF RENEWABLE ENERGY POWER AND NEW ENERGY POWER
Section
1. REGULATIONS ON RENEWABLE ENERGY POWER AND NEW ENERGY POWER
Article
20. General regulations on development of renewable energy power and new energy
power
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a) Comply with
regulations of Vietnamese laws on national defense, security, social order and
safety, community health, environmental protection, response to climate change,
protection of natural resources and cultural heritage, preservation of
historical-cultural sites and scenic landscapes;
b) Use modern techniques
and technologies, comply with national technical regulations and apply
standards in accordance with Vietnamese laws.
2. Principles of
development of renewable energy power and new energy power include:
a) Ensuring electricity
supply security and power system safety;
b) Developing renewable
energy power and new energy power in regions and localities that have
potentials for and advantages in renewable energy power and new energy power
together with the development of the power system infrastructure so as to avoid
wastefulness and loss in construction investment due to inability to carry out
curtailment in order to effectively exploit power sources and ensure the
reliability of electricity supply; minimizing technical loss, reducing pressure
on power transmission over long distances; satisfying environmental
requirements and suiting socio-economic conditions of areas where the
development takes place;
c) Synchronizing plans
for training and development of human resources participating in research and
activities in the field of renewable energy power and new energy power,
progressing towards technological autonomy at a number of appropriate stages;
d) Prioritizing effective
exploitation and use of renewable and new energy sources in order to exploit
natural resources in a sustainable and rational manner, ensure national energy
security and serve electricity export;
dd) Prioritizing the
development of large power source projects to form clusters of renewable energy
plants or renewable energy centers so as to promote natural advantages and
develop electrical grid infrastructure in a manner that is within the capacity
for curtailment and satisfies operation requirements of the national power
system of each region or each locality, and the conditions and technological
level from time to time;
e) Encouraging
appropriate development of rooftop solar power, floating solar power on water
surface and irrigation reservoir beds; prioritizing development on the water
surface of existing hydropower reservoir beds, not requiring investment in new
transmission grids;
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3. Organizations and
individuals are encouraged to invest in wind and solar power projects in
combination with investment in energy storage systems or production of green
hydrogen or green ammonia to serve electricity generation and use. For solar
and wind power sources connected to the national power system, the total
generating capacity of solar and wind power plants and the capacity of the
energy storage system must not exceed the capacity of solar and wind power
plants which have been determined in the PDP or the electricity supply network
development scheme in the provincial planning; the installed capacity shall be
decided by the investor in the stage of executing the construction investment
project on the basis of achieving the prescribed capacity ratio of the energy
storage system and ensuring the efficient use of natural resources.
4. Developing electricity
from renewable energy and new energy to create a foundation for shifting the
power structure in the direction of low carbon, achieving the goal of reducing
emissions and ensuring the sustainable development of the power system.
5. A wind power project at
sea employs all wind turbines which are built in the territorial waters of
Vietnam and located outside the lowest mean water line of the mainland for
multiple years towards the sea. Wind power projects at sea are classified into
the following categories:
a) Inshore wind power
projects which employ all turbines built in the territorial waters of 06
nautical miles from the lowest mean water line of the mainland for multiple
years towards the sea;
b) Offshore wind power
projects which employ all turbines built outside the territorial waters of 06
nautical miles from the lowest mean water line of the mainland for multiple
years towards the sea.
6. The planning for and
investment in wind power projects at sea shall be carried out in the following
order of priority:
a) Projects on production
of electricity for supply to the national power system;
b) Self-produced or
self-consumed electricity projects or electricity projects for production of
green hydrogen or green ammonia and projects serving other domestic demands;
c) Projects on production
of electricity for export and production of green hydrogen or green ammonia for
export.
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8. The Government shall
elaborate the following contents:
a) Mechanisms for
providing incentives and support for the development of energy storage systems of
electricity projects from renewable energy sources appropriate to the
technological level in this field;
b) Policies on incentives
and support for appropriate research and development of technologies in the
field of wind and solar power in Vietnam;
c) Mechanisms for sharing
and providing information and data on monitoring of parameters of primary
energy sources and production of statistics on electricity output of renewable
energy power plants and new energy power plants, except for self-produced and self-consumed
rooftop solar power sources.
Article
21. Baseline surveys of renewable energy power and new energy power resources
1. Baseline surveys of
renewable energy power and new energy power resources in the Vietnam’s
territory shall cover:
a) Solar, wind and
geothermal power resources;
b) Wave power resources,
tidal power resources and other forms of power resources from ocean energy;
c) Electricity resources
from domestic and urban solid waste;
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dd) Electricity resources
from waste from production and business processes other than those specified in
point c of this clause;
e) Hydropower resources.
2. Responsibility for
conducting baseline surveys of renewable energy power and new energy power
resources is provided for as follows:
a) Authority and
responsibility for conducting baseline surveys of renewable energy power and
new energy power resources in the territorial waters of Vietnam shall comply
with regulations of law of the sea and law on natural resources and environment
of sea and islands;
b) Authority and
responsibility for conducting baseline surveys of hydropower resources shall
comply with regulations of law at water resources;
c) Except the case
specified in point d of this clause, provincial People's Committees shall
conduct baseline surveys of renewable energy power and new energy power
resources on the mainland and islands within the scope of administrative
boundary management;
d) The Ministry of
Natural Resources and Environment shall assign wholly state-owned enterprises
to conduct and public service providers having functions of conducting baseline
surveys of natural resources and environment of sea and island to preside over
conducting baselines surveys in certain sea areas within Vietnam’s territorial waters.
3. The State encourages
and mobilizes legal financial resources and scientific and technical
contributions from organizations and individuals to serve baseline surveys.
4. The information and
data specified in clause 1 of this Article shall serve as inputs so as for
authorities organizing planning formulation and planning consultancies to
formulate PDP and provincial planning. In case an area is yet to have the
information and data specified in this clause, the authority organizing
planning formulation shall collect reliable and appropriate data to perform
tasks as prescribed by law. The Ministry of Natural Resources and Environment
shall aggregate information and data nationwide as prescribed in clause 1 of
this Article.
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6. Costs of conducting
baseline surveys as specified in clause 1 of this Article shall be covered by:
a) State budget;
b) Funding provided by
wholly state-owned enterprises for covering these costs as prescribed by law,
derived from their funding for production and business expenses and other
lawful funding sources.;
c) Amounts voluntarily
donated from organizations and individuals.
7. The Minister of
Natural Resources and Environment shall elaborate the scope of baseline surveys
as specified in clause 1 of this Article, except for the tasks performed
according to regulations of law on water resources and law on natural resources
and environment of sea and islands.
Article
22. Development of self-produced and self-consumed electricity from renewable
energy sources and new energy sources
1. Self-produced and
self-consumed power sources may be connected to the national power system, and
the connection must comply with regulations of the electricity law; it is
permitted to sell surplus electricity output as per laws; to use land for
multi-purpose energy and public lighting works as per the land law.
2. Based on technical
capability, economic conditions and state budget capacity from time to time,
the Prime Minister and provincial People's Councils shall promulgate policies
to support households in installing electricity for self-production and
self-consumption as follows:
a) Provide financial
support for investment in the installation of rooftop solar power and energy
storage systems;
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3. The Government shall
elaborate the following contents:
a) The production
capacity and electricity suitable for the electricity load and development conditions
of the power system;
b) Installation of energy
storage systems in combination with investment in self-produced and
self-consumed power sources;
c) Procedures for
development of self-produced and self-consumed power sources;
d) Mechanisms for purchase
and sale prices for surplus electricity output;
dd) Responsibilities of
relevant organizations and individuals when developing self-produced and
self-consumed power sources.
Article
23. Development of new energy power
1. New energy power
project means a clean energy production project which is eligible for the
State's tax and investment credit policies and credit in accordance with
relevant laws.
2. Based on the
requirements for ensuring electricity supply security, scientific and
technological progress, and socio-economic development conditions from time to
time, the Government shall regulate the conditions and time limits for
application of the following mechanisms and policies for new energy power
projects:
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b) Exemption or reduction
of land levy or land rent;
c) Minimum long-term
contracted electricity output for projects feeding electricity back to the
national power system on the basis of protecting the interests of the State and
the People, and ensuring the safety of the power system from time to time.
Article
24. Renovation, repair and replacement of equipment of renewable energy and new
energy power plants
1. During the period of
operating a power plant according to the approved design in accordance with
operation duration of a renewable energy power or new energy power project,
such power plant may be renovated, repaired or replaced with equipment whose
specifications are different from its current operating specification to ensure
safe and efficient operation in compliance with the provisions of laws without
leading to an increase in the area of land or sea area used.
2. The capacity of
electricity of the projects in clause 1 of this Article fed back to the
national power system must not exceed the capacity stated in the following
legal documents of the projects:
a) The written investment
guideline decision or approval or investment registration certificate;
b) Electricity license.
Article
25. Decommissioning of works of renewable energy and new energy power projects
1. A work of a renewable
energy power or new energy power project must be decommissioned after
termination of the project in the following cases:
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b) When the operation
duration expires without any extension granted as per the law on construction;
c) When there is any
difference in the duration specified in points a and b of this clause, the
decommissioning after termination shall be carried out on a first
come, first served basis.
2. The decommissioning of
a solar or wind power plant after its shutdown is regulated as follows:
a) The owner of the solar
or wind power plant must decommission its plant as required above; all
decommission costs shall be borne by the owner;
b) The decommissioning,
recovery, treatment and management of wastes, materials and scraps must comply
with the law on environmental protection and other relevant laws, and meet the
requirements for restoration of the premises and environment after the
decommissioning;
c) From the time of
termination as specified in clause 1 of this Article, the owner shall complete
the decommissioning within the time limit prescribed by the Government.
3. For cases other than
those specified in clauses 1 and 2 of this Article, the decommissioning of
works of new and renewable energy power projects must comply with other
relevant regulations of law.
Section
2. REGULATIONS ON DEVELOPMENT OF OFFSHORE WIND POWER
Article
26. General regulations
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a) Organizations and individuals
implementing and participating in the implementation of offshore wind power
projects must comply with regulations of laws on assurance of national defense
and security;
b) The production and use
of equipment and the creation, transmission, collection, processing, storage
and exchange of information and data outside the border must comply with laws.
2. The implementation of
offshore wind power projects must comply with this Law and Vietnamese laws on
maritime safety and safety of equipment and works and conform to treaties to
which the Socialist Republic of Vietnam is a signatory.
3. Offshore wind power
projects are entitled to the following mechanisms and policies provided that
the conditions and deadlines prescribed by the Government are met:
a) Minimum long-term
contracted electricity output for projects feeding electricity back to the
national power system;
b) Exemption or reduction
of sea area levy;
c) Exemption or reduction
of land levy or land rent.
4. In addition to the
mechanisms and policies specified in clause 3 of this Article, wholly
state-owned enterprises may be exempt from providing guarantees for investment
project execution under the investment law; may be considered to have
overextensions for a customer and related persons granted by the Prime Minister
to their offshore wind power projects in accordance with the Law on Credit
Institutions.
5. Based on
socio-economic development conditions, development objectives and investment
attraction in each period and the level of the competitive electricity market,
and in order to ensure electricity supply security, the Government shall
elaborate following contents:
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b) Conditions for
implementation and participation in the implementation of offshore wind power
projects applicable to organizations being foreign investors or domestic
investors, including the ownership ratio of shares and stakes in offshore wind
power projects;
c) The time of
termination of the mechanisms and policies specified in clause 3 of this
Article.
6. Offshore wind power
projects are identified as construction investment projects and subject to the
following regulations:
a) The survey of offshore
wind power projects shall be subject to standards, technical regulations,
economic-technical norms, and unit prices according to international and
foreign standards in case they have not yet been promulgated on a national
basis;
b) Offshore wind power
works shall be subject to standards and technical regulations according to
international and foreign standards in case they have not yet been promulgated
on a national basis.
7. The Government shall
prescribe a mechanism for cooperation between Ministries, ministerial agencies
and People's Committees of coastal provinces and other relevant agencies in the
management of offshore wind power projects and works.
8. The transfer of
projects, shares and stakes in offshore wind projects must comply with
regulations set out in clause 1 of this Article and other relevant regulations
of laws. The Government shall elaborate this clause.
Article
27. Survey of offshore wind power projects
1. The survey of offshore
wind power projects shall comply with regulations of law of the sea, law on
natural resources, environment of sea and islands and law on construction, and
conform to treaties to which the Socialist Republic of Vietnam is a signatory
and international practices.
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a) The Prime Minister
shall assign wholly state-owned enterprise to conduct surveys;
b) Based on the
socio-economic development conditions in each period, the Government shall
regulate the selection of units surveying offshore wind power projects, except
for the regulations set out in point a of this clause.
3. The survey costs of
enterprises specified in point a clause 2 of this Article shall be handled as
follows:
a) Survey costs in the
case specified in point a clause 2 of this Article shall be covered by a wholly
state-owned enterprise; this enterprise may contribute capital to invest in
projects in the areas in which the Prime Minister assign it to conduct surveys;
b) In case of failure to
apply the regulations set forth in point a of this clause, the investor
selected to execute a project shall reimburse the survey costs to the
enterprise mentioned in point a clause 2 of this Article.
4. The management,
exploitation and use of samples, documents, information, data and results of
surveys of offshore wind power projects must comply with the following
regulations:
a) State agencies and
enterprises shall preside over surveying and managing samples, documents,
information, data and results of surveys of offshore wind power projects
conducted by them; other organizations in charge of conducting surveys must
submit approved samples, documents, information, data and results of surveys of
offshore wind power projects to authorities in charge of state management of
natural resources and environment of sea and islands for management;
b) Organizations and
individuals that access, consult, exploit and use samples, documents,
information, data and results of surveys of offshore wind power projects must
keep the information confidential in accordance with laws and the agreement
between the parties.
5. The Government shall
elaborate clause 4 of this Article and survey contents, mechanism for handling
survey costs, conditions and capacity of survey units; regulate the delegation of
responsibilities to prescribe economic-technical norms, survey unit prices,
verification of survey results, surveyed area and use of sea areas, payment of
costs of preparation of pre-feasibility study reports on project construction
investment.
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1. Investors shall
prepare applications for approval of investment guidelines of an offshore wind
power project as follows:
a) A wholly state-owned
enterprise shall prepare an application for approval of both investment
guidelines and investor or prepare an application for investment guideline
approval for bidding for investor selection;
b) The investor
conducting survey as prescribed in point b clause 2 Article 27 of this Law
shall prepare an application for approval of investment guidelines for investor
selection in case the surveyed area and the scale of the project are consistent
with the PDP.
2. Contents of the
application for approval of both investment guidelines and investor or
application for approval of or decision on investment guidelines of an offshore
wind power project are specified under the Law on Investment or the Law on
Public Investment or the Law on Public-Private Partnership Investment and
include the following:
a) Expected location,
coordinates and area of the sea area to be used instead of documents
determining the right to use the location for execution of the investment
project;
b) Expected duration of
use of the sea area.
3. When appraising
investment guidelines as per the law on investment, the law on public
investment, and the law on public-private partnership investment, the agency
presiding over appraisal of an offshore wind power project must consult the
following agencies:
a) The Ministry of National
defense, the Ministry of Public Security, the Ministry of Foreign Affairs, the
Ministry of Natural Resources and Environment, the Ministry of Transport and
other Ministries and central authorities as assigned by the Government;
b) People's Committees of
coastal provinces in areas where the offshore wind power project is executed.
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Article
29. Selecting investors in offshore wind power projects
1. Investors in offshore
wind power projects shall be selected as follows:
a) Regarding public
investment projects, the law on public investment shall be complied with;
b) Regarding PPP
investment projects, the law on PPP investment shall be complied with;
c) Regarding business
investment projects, the law on investment shall be complied with.
2. Except for projects
subject to investment policy approval by the National Assembly, the Prime
Minister shall approve both investment guidelines and investors in the
following offshore wind power business investment projects:
a) Projects that are not
subject to bidding for investor selection due to defense and security reasons
according to the opinions of the Ministry of National Defense or the Ministry
of Public Security;
b) Projects granted
approval for both investment guidelines and investors as prescribed in point a
clause 1 Article 28 of this Law.
3. Apart from the
projects specified in clause 2 of this Article, the selection of investors for
execution of offshore wind power business investment projects feeding
electricity back to the national power system must comply with this Law and law
on bidding. The ceiling electricity price in the bidding documents must not be
higher than the maximum price of the electricity generation price bracket
issued by the Ministry of Industry and Trade. The bid-winning electricity price
for selecting an investor shall be the maximum electricity price as a basis for
the electricity buyer to negotiate with the bid-winning investor. The bidding
documents shall be prepared in accordance with laws and the following documents
and contents:
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b) Mechanisms and
policies specified in clause 3 Article 26 of this Law.
4. Based on
socio-economic development conditions, development objectives and investment
attraction in each period and conditions for development of the electricity
market, and in order to ensure electricity supply security, the Government
shall elaborate following contents:
a) Conditions to be
satisfied by investors to participate in bidding;
b) The selection of
investors for execution of offshore wind power projects in an effort to achieve
the development objectives according to the planning and the demand for
attracting investment to this field;
c) The negotiation and
conclusion of business investment project contracts and PPAs with bid-winning
investors as specified in clause 3 of this Article.
Chapter
IV
ISSUANCE OF
ELECTRICITY LICENSES
Article
30. Principles of issuing electricity licenses
1. The following fields
of electricity activities are subject to issuance of the electricity license:
electricity generation, electricity transmission, electricity distribution, electricity
wholesaling and electricity retailing.
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3. The electricity
license shall not be issued at the investment stage. The investment in the
field of electricity shall be made as prescribed by the law on investment.
4. The electricity
license shall be issued to an organization so as for it to perform one or more
electricity activities.
5. The electricity
license in the field of electricity generation shall be issued to each
organization owning a power plant by work item or the entire work.
6. The electricity
license in the field of electricity transmission shall be issued by the scope
of management and operation of each specific transmission grid.
7. The electricity
license in the field of electricity distribution shall be issued by the scope
of management and operation of each specific distribution grid.
8. The electricity
license in the field of electricity wholesaling shall be issued by the specific
scope of electricity sale.
9. The electricity
license in the field of electricity retailing shall be issued by the specific
scope of electricity sale, except for the scope covered by the license issued
by the competent authority to another unit. When going through the stage of
operating the competitive retail electricity market, the electricity license in
the field of electricity retailing shall be issued to every organization
participating in the retail electricity market within the scope of the retail
electricity market.
10. Prior to the stage of
operating the competitive retail electricity market, the electricity license in
the field of electricity retailing shall be issued together with the
electricity license in the field of electricity generation or electricity
distribution.
11. The electricity
license may be issued to one or more organizations participating in the same
field in compliance with this Law, Law on Investment, Law on Enterprises and
other relevant regulations of law.
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1. An organization will
be issued with the electricity license if it fully satisfies the following
conditions:
a) It is lawfully
established as prescribed by law;
b) It has technical
managers, business managers and operators that meet the requirements for
quantity and qualifications.
2. In the field of
electricity generation, electricity transmission or electricity distribution, an
organization will be issued with the electricity license if it fully satisfies
the conditions set out in clause 1 of this Article and the following
conditions:
a) It has electricity
generation, transmission or distribution work items or works which conform to
the PDP and electricity supply network development scheme in the provincial
planning, plan to implement PDP, plan to implement provincial planning
including contents of the electricity supply network development scheme and
adjustment decisions (if any); such work items or works are constructed and
installed according to the approved design and meet the conditions for putting
work items or works into operation;
b) It has projects or
works for power generation, transmission or distribution which are built and
installed in compliance with regulations of law of the sea, law on land, law on
fire prevention and fighting, and rescue, law on environmental protection and
other relevant regulations of law;
c) It has documents on
dam and reservoir safety management according to regulations of law regarding
the field of hydropower plant power generation.
3. In the field of
electricity wholesaling or retailing, an organization will be issued with the
electricity license if it fully satisfies the conditions set out in clause 1 of
this Article and formulates an appropriate plan for electricity wholesaling or
retailing.
4. The Government shall
elaborate conditions applicable to fields subject to issuance of the
electricity license.
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1. A new electricity
license shall be issued in the following cases:
a) Issuance of the first
license to a work item or entire work in the field of electricity generation;
b) Issuance of the first
license to a specific scope in the field of electricity transmission,
distribution, wholesaling or retailing;
c) Issuance of a new
electricity license in case of change of the scope of operation, main
specifications of an electricity work or technology used in electricity
activities specified in the issued license.
2. A revised electricity
license shall be issued in the following cases:
a) At the request of the
license holder when there is a change to any of the contents of the electricity
license specified in clause 1 Article 34 of this Law or any activity specified
in clause 2 Article 34 of this Law are removed;
b) At the request of a
competent authority in case it is needed to protect the national defense or
national security interests, socio - economic interests or public interests;
c) There is any error in
the information written on the issued license.
3. An electricity license
shall be re-issued in the following cases:
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b) The issued license is
expiring in 06 months or less or is expired and the license holder makes a
request. In this case, contents of the license specified in clauses 2, 3 and 4
Article 34 of this Law are the same as those of the issued license;
c) The case prescribed in
clause 2 Article 36 of this Law.
4. The electricity
license may be extended at the request of the license holder if the interval
between its expiry date and the date of transfer of any asset or electricity
work or the date of terminating the project does not exceed 12 months. The
license may be extended once and the expiry date of the extended license must
not be later than the date of transfer of the asset or electricity work or the
date of terminating the project.
5. The Government shall
elaborate applications and procedures for issuance of the electricity license.
Article
33. Exemption from electricity license exemption
1. Electricity license exemptions:
a) Any organization
invests in construction of facilities generating electricity for domestic
consumption and does not sell electricity to other organizations and
individuals, and the installed capacity smaller than the capacity prescribed by
the Government;
b) Any organization
generates electricity with an installed capacity smaller than the capacity
prescribed by the Government;
c) Any organization
trading in electricity in rural areas or mountainous areas or on islands buys
electricity with a capacity smaller than the capacity prescribed by the
Government from the distribution grid to sell it directly to electricity
consumers in rural areas or mountainous areas or on islands;
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dd) National power system
dispatch units and electricity market transaction regulation units;
e) Emergency electricity
work items, emergency works for construction of power sources and emergency
electrical grids specified in Article 14 of this Law are exempt from the electricity
license within 06 months from the date of being put into operation;
g) Other electricity
activities not covered by clause 1 Article 30 of this Law.
2. The organizations
exempt from the electricity license specified in clause 1 Article 34 of this
Law must comply with procedures and technical regulations on management and
operation, regulation on electricity prices, technical and safety conditions
and fulfill the obligations by electricity activities specified in this Law.
3. Provincial People’s Committees
shall manage and inspect organizations conducting electricity activities in
their provinces as specified in clauses 1 and 2 of this Article.
4. The Government shall
regulate specific capacity at which the electricity license is exempted as
specified in clause 1 of this Article.
Article
34. Contents of an electricity license
1. Name and head office
address of the license holder.
2. Electricity
activities.
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4. Main specifications of
the electricity work or technology used in electricity activities with regard
to the fields of electricity generation, electricity transmission and
electricity distribution.
5. Validity period of the
electricity license.
6. Rights and obligations
of the license holder.
Article
35. Validity period of electricity licenses
1. The validity period of
an electricity license must not exceed the operation duration of a project or
work for electricity transmission or electricity distribution.
2. The Government shall elaborate
validity period of the electricity license by each activity and in each case of
issuance of the electricity license according to regulations of this Law.
Article
36. Revocation of electricity licenses
1. An organization shall
have its electricity license revoked in the following cases:
a) It wishes to terminate
an electricity license or transfer the licensed electricity license to another
organization;
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c) It operates against
the electricity activity or scope written on the electricity license;
d) It leases out or lends
out the license for conduct of any electricity activity; arbitrarily modifies
any content of the license;
dd) It forges the
documents in the application for issuance of electricity license;
e) It fails to abide by
the decision on imposition of penalties for administrative violations issued by
the competent authority when violating regulations on electricity licenses and
fails to take corrective actions within the time limit required by the
competent authority.
2. Any organization
having its electricity license revoked as prescribed in points b, c, d, dd and
e clause 1 of this Article is entitled to apply for re-issuance of the
electricity license after fulfilling the responsibilities and obligations as
prescribed by law.
3. The Government shall
elaborate this Article, and applications and procedures for revocation of the
electricity license.
Article
37. Authority to issue, revise, re-issue, extend and revoke electricity
licenses
1. The Ministry of
Industry and Trade shall issue electricity licenses in the fields of
electricity generation, electricity transmission, electricity distribution,
electricity wholesaling and electricity retailing, except the regulations in
clause 2 of this Article.
2. Provincial People’s
Committees shall issue electricity licenses in the fields of electricity
generation, electricity distribution, electricity wholesaling and electricity
retailing within their provinces according to the Government's regulations.
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4. The licensing
authority reserves the right to revise, re-issue, extend and revoke electricity
licenses.
5. Based on
socio-economic development conditions and state management requirements from
time to time, the Government shall elaborate clauses 1 and 2 of this Article on
the authority to issue, revise, re-issue, extend and revoke electricity
licenses by capacity, voltage level and scope of each electricity activity.
Chapter
V
COMPETITIVE
ELECTRICITY MARKET AND ELECTRICITY TRADING
Section
1. COMPETITIVE ELECTRICITY MARKET
Article
38. Principles of operation
1. Ensure publicity,
transparency, equality, fair competition, and non-discrimination among
participants in the competitive electricity market; protect legitimate rights
and interests of electric utilities and electricity consumers.
2. Respect and protect
the rights to freely choose partners and transaction forms of electricity
traders on the competitive electricity market appropriate to the level of the
competitive electricity market.
3. The State regulates
the operation of the competitive electricity market in order to facilitate
sustainable development of the power system and satisfaction of the
requirements for safe, stable and efficient supply of electricity.
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1. The competitive
electricity market is developed at the following levels:
a) Competitive
electricity generation market;
b) Competitive wholesale electricity market;
c) Competitive retail
electricity market.
2. Conditions to be
fulfilled before operating the competitive electricity market at levels
include:
a) Formulating and
perfecting legislative documents;
b) Restructuring the
electric power sector;
c) Building and
completing the infrastructure of the power system and electricity market;
d) Reforming the
electricity price mechanism, gradually reducing and progressing towards the
elimination of cross-subsidy among consumer groups and regions.
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Article
40. Participants in the competitive electricity market at levels
1. Participants in the
competitive electricity market comprise:
a) Electricity generation
units;
b) Electricity
transmission units.
c) Electricity
distribution units.
d) Electricity
wholesalers;
dd) Electricity
retailers;
e) National power system
dispatch units;
g) Electricity market transaction
regulation units
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2. The Minister of
Industry and Trade shall elaborate the participation by the participants
specified in clause 1 of this Article in a manner that is suitable for levels
of the competitive electricity market.
Article
41. Electricity trading on the competitive electricity market at levels
1. Electricity traders on
the competitive electricity market comprise:
a) Electricity generation
units;
b) Electricity
wholesalers;
c) Electricity retailers;
d) Electricity consumers.
2. The electricity
trading on the electricity market shall be effected in the following forms:
a) Under a contract
between an electricity seller and an electricity buyer;
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c) Under an electricity
forward contract, options contract to buy or sell electricity or electricity
futures contract between an electricity seller and an electricity buyer.
3. Spot electricity
prices shall be formed according to each transaction cycle of the competitive
electricity market and announced by the electricity market regulation unit.
Article
42. Transactions and regulation of transactions on competitive electricity
market at levels
1. Transactions and
regulation of transactions on the competitive electricity market include:
a) Fully and reliably
predicting the electricity supply and demand and formulating an electricity
market operation plan;
b) Spot electricity trading
on the electricity market;
c) Offering prices and
determining market prices;
d) Providing ancillary
services and prices of ancillary services appropriate to each level of the
competitive electricity market;
dd) Preparing invoices
and making payment between the traders specified in clause 1 Article 41 of this
Law and ancillary service providers;
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g) Providing transaction
services and payment services for the amount of electricity and capacity traded
under a spot contract and ancillary services;
h) Receiving and handling
propositions related to transactions in electricity trading on the electricity
market in order to ensure the stability and efficiency and prevent unfair
competition practices;
i) Controlling the
operation of the electricity market;
k) Reporting transactions
in the electricity trading on the electricity market.
2. The Minister of
Industry and Trade shall elaborate clause 1 of this Article in a manner that is
suitable for each level of the competitive electricity market.
Article
43. Suspending and resuming operation of the spot electricity market in the
competitive electricity market at levels
1. The operation of the
spot electricity market in the competitive electricity market at levels shall
be suspended in any of the following cases:
a) An emergency situation
which is a disaster or natural disaster arises or national defense and security
protection is required;
b) The power system
operates in extreme emergency mode, thereby failing to ensure stable, safe and
continuous operation of the power system and the electricity market;
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2. The operation of the
spot electricity market in the competitive electricity market at levels shall
be resumed as the causes of suspension specified in clause 1 of this Article
are eliminated.
3. The Minister of
Industry and Trade shall elaborate this Article.
Section
2. POWER PURCHASE AGREEMENTS AND POWER SERVICE SUPPLY AGREEMENTS
Article
44. Power purchase agreements and power service supply agreements
1. A PPA or power service
supply agreement must be established in the form of a physical document or a
data message having the same validity as a document in accordance with law.
2. A PPA between an
electricity generation unit and an electricity buyer, except for a power plant
invested in the form of PPP; electricity wholesale agreement or contract for
provision of auxiliary services for the power system must contain the following
main contents:
a) Information of the
parties to the contract, including: name, address, phone number, other contact
methods (if any);
b) Price of the PPA;
wholesale electricity prices; prices of auxiliary services for the power
system;
c) Contracted electricity
output (if any);
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dd) Rights and
obligations of the parties;
e) Language used: Vietnamese.
In case the electricity seller has a foreign investor(s), the electricity
seller and the electricity buyer may agree to employ another contract written
in English language;
g) Other contents agreed
upon by the two parties.
3. A PPA serving domestic
purposes must primarily contain:
a) Information of the
parties to the contract, including: name, address, phone number, other contact
methods (if any);
b) Service standards and quality, address of electricity use;
c) Retail electricity
price, payment methods and deadline;
d) Rights and obligations
of the parties;
dd) Electricity buyer's
responsibility for protecting information;
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g) Force majeure events
pursuant to the civil law;
h) Methods for dispute
settlement;
i) Time of agreement
conclusion, term of the agreement;
k) Penalty clauses;
l) Other contents agreed
upon by the two parties.
4. A PPA serving
non-domestic purposes shall contain the contents agreed upon by the parties.
The electricity buyer shall ensure power quality as prescribed in Article 57 of
this Law. In case an electricity consumer has a large monthly average
electricity consumption, they must furnish performance security as agreed upon
by the parties.
5. The Minister of
Industry and Trade shall elaborate clause 2 of this Article in a manner that is
suitable for each level of the competitive electricity market.
6. The Government shall
elaborate the performance security and assurance of power quality specified in
clause 4 of this Article and regulate the conditions for concluding PPAs
serving domestic purposes.
Article
45. Electricity forward contracts, options contracts to buy or sell
electricity, electricity futures contracts
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a) The contracted
electricity output and electricity purchase and sale price in the electricity
forward contract to be determined on the basis of negotiation and agreement
between the electricity buyer and the electricity seller;
b) The reference price in
the electricity forward contract which is the spot electricity market price
calculated and announced in accordance with the regulations on operation of the
competitive electricity market;
c) The electricity buyer
or the electricity seller are obliged to pay the difference between the
electricity buying price and the reference price in the electricity forward
contract with regard to the committed electricity output.
2. Main contents of an
options contract to buy or sell electricity:
a) The option in the
options contract to buy or sell electricity which may be the option to buy or
sell, which is determined on the basis of the agreement between the option
buyer and the option seller;
b) The contracted
electricity output, electricity price and validity period of the options
contracts to buy or sell electricity to be determined on the basis of
negotiation and agreement between the option buyer and the option seller;
c) The option buyer may
choose whether to exercise the option or not within the validity period of the
contract;
d) The option seller is
obliged to sell the electricity output at the contracted price when the buyer
exercises the option to buy or buys the electricity output at the contracted
price when the buyer exercises the option to sell;
dd) The option buying
price is determined on the basis of supply and demand for the options contracts
to buy or sell electricity on the forward electricity market.
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4. Value-added tax
mechanism applicable to transactions of electricity forward contracts, options
contracts to buy or sell electricity and electricity futures contracts must
comply with the law on value-added tax.
5. The Minister of
Industry and Trade shall elaborate clauses 1 and 2 of this Article.
6. The Government shall
regulate the conditions and roadmap for forming and developing the competitive
electricity market, mechanism for operation of the forward electricity market
in conformity with the requirements for assurance of electricity supply
security, levels of the competitive electricity market and other relevant
regulations of law.
Article
46. Trading of electricity with foreign countries
1. The trading of
electricity with a foreign country includes electricity trading activities with
a foreign country through the national power system or through the direct
connection which bypasses the national power system. The trading of electricity
with a foreign country must ensure national energy security and protect
interests of the State and the People and the interests of electricity
consumers and must conform to the strategy for trading of electricity with
foreign countries and PDP approved.
2. The connection of the
electrical grid with a foreign country through the national power system must
meet the following requirements:
a) Ensure security,
safety, reliability and stability during operation of the national power
system;
b) Ensure the
economic-technical optimization of the power system, conform to standards,
technical regulations, management and operation processes of the national power
system;
c) Projects and works
connecting the electrical grid with the foreign country in land border areas
must not change border identification signs or affect national border markers.
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4. The direct connection
of electrical grid with a foreign country which bypasses the national power
system shall be made with the agreement of the parties to the power grid
connection.
5. Electricity import
prices determined at Vietnam's shall be agreed upon by the electricity buyer
and the electricity seller in line with the electricity import price bracket
promulgated by the Minister of Industry and Trade, aiming at minimizing the
cost of electricity buying.
6. Prices of export of
electricity to a foreign country shall be agreed upon by the electricity seller
and the electricity buyer by way of adhering to the following principles:
a) The regulations
specified in clause 1 of this Article are complied with;
b) In case the export of
electricity bypasses the national power system, the electricity export price
must not be lower than the maximum price of the domestic electricity generation
price bracket corresponding to the type of electricity generation promulgated
by the Minister of Industry and Trade;
c) In case of exporting
electricity to foreign countries through the national power system, the
electricity export price shall rely on the retail electricity price specified
in clause 1 Article 50 of this Law and must not be lower than the maximum price
of the price bracket of the average domestic retail electricity price.
7. Based on the demands
for socio-economic development from time to time, the Prime Minister shall
decide the strategy for trading of electricity with foreign countries.
8. The Minister of
Industry and Trade shall approve guidelines for trading of electricity with
foreign countries in conformity with the strategy for trading of electricity
with foreign countries, PDP and plan to implement the planning approved;
regulate applications and procedures for formulation and approval of
electricity import price brackets, methods of formulating electricity import
price brackets applicable to specific countries, dossiers and procedures for
trading of electricity with foreign countries.
Article
47. Direct electricity trading between large electricity consumers and
electricity generation units
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a) Trading of electricity
through a separate connected electrical grid;
b) Trading of electricity
through the national grid.
2. The direct trading of
electricity between large electricity users and electricity generation units
must adhere to the following principles:
a) Comply with
regulations of laws on planning and investment, regulations on issuance of
electricity licenses, electricity trading activities and other relevant
regulations of law;
b) Be suitable for levels
of the competitive electricity market.
3. The Government shall
regulate the mechanism for direct trading of electricity between large
electricity users and electricity generation units; regulate dossiers,
procedures and responsibilities of relevant parties upon participation in the
mechanism for direct trading of electricity between large electricity users and
electricity generation units.
Article
48. Payment of electricity bills under PPAs with electricity consumers
1. Electricity bills
under a PPA with an electricity consumer serving domestic purposes shall be
paid in accordance with the following regulations:
a) Electricity bills
shall paid using the method agreed upon by the two parties under the PPA; if
the electricity buyer delays paying electricity bills, they must pay a late payment
interest to the electricity seller in proportion to the period of late payment;
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c) If the electricity
seller collects electricity bill overpayment, they must refund the excess to
the electricity buyer, including the interest on such overpayment or agree with
the electricity buyer to offset the electricity bill overpayment in the next
payment period;
d) The interest on
electricity bill overpayment shall be determined as prescribed in point b of
this clause;
dd) The electricity
seller shall record meter reading once a month on a fixed date, except force
majeure events that pose a safety risk to workers as specified in the PPA. The
date of recording meter readings may be 01 day sooner or later than the fixed
date or changed as agreed upon in the PPA.
2. Electricity bills
under a PPA with an electricity consumer serving non-domestic purposes shall be
paid as agreed upon by the parties under the agreement. Any party that delays
the payment or collects electricity bill overpayment is obliged to pay a late
payment interest in proportion to the period of late payment in accordance with
regulations of civil law.
3. Regulations on
reconsidering the electricity bill payable:
a) The electricity buyer
is entitled to request the electricity seller to re-consider the electricity
bill payable using any of the following methods: directly at the electricity
seller; via postal services; by electronic means or another method agreed upon
by the parties;
b) Upon receiving the
electricity buyer’s request, the electricity seller shall process it within 07
days from the date of receiving the request. Where they disagree with the
electricity seller, the electricity buyer shall request a competent authority
to initiate the conciliation procedure in accordance with regulations of law on
conciliation or request an arbitration center or court to proceed with their
request as prescribed by law;
c) Pending the request
processing result, the electricity buyer still has to pay the electricity bill;
the electricity seller must not disconnect the electricity supply.
4. Where the electricity
buyer fails to pay the electricity bill as agreed upon under the agreement
after the electricity seller has sent 02 separate notifications, at least 03
days apart, the electricity seller is entitled to disconnect the electricity
supply. The electricity seller is entitled to disconnect the electricity supply
from the time of supply disconnection which shall be agreed upon by the two
parties in PPA but not more than 10 days after seller sends the first
notification. The electricity seller must notify the time of electricity supply
disconnection to the electricity buyer 24 hours in advance and is not required
to bear responsibly for the damage caused by the electricity supply
disconnection. After the electricity buyer pays the electricity bill and
completes the procedures for applying for electricity supply resumption, the electricity
seller must resume the electricity supply as per the law on electricity.
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6. The determination of
electricity bills in cases where the electricity metering device is not
accurate according to technical requirements for measurement, where the
electricity buyer uses electricity during the period during the period the
metering system is faulty causing the meter to stop working and where the
electricity buyer uses electricity during the period the metering system is
lost shall comply with regulations of the Minister of Industry and Trade.
7. The Government shall
elaborate the recording of electricity meter readings.
Article
49. Disconnecting and reducing supply of electricity to electricity consumers
1. Disconnecting and
reducing supply of electricity to an electricity consumer shall comply with
regulations of law and signed PPA. The electricity buyer and electricity seller
must agree to the cases of electricity supply disconnection and reduction and
methods of notifying the electricity supply disconnection and reduction in the
PPA.
2. Cases of electricity
supply disconnection and reduction:
a) As an incident or
force majeure event which is beyond the electricity seller's control occurs,
thereby seriously threatening the safety of persons and equipment or a power
shortage occurs, thereby threatening the safety of the power system, the electricity
seller may disconnect or reduce the electricity supply; must, within 24 hours
since the electricity supply disconnection or reduction, notify the electricity
buyer of the status of electricity supply and the estimated time of electricity
supply resumption;
b) When there is a plan
for repair, maintenance or other tasks, the electricity seller shall notify the
electricity buyer thereof at least 05 days before the electricity supply
disconnection or reduction by the notification method agreed upon in the PPA;
c) Electricity bills are
not paid as prescribed in clause 4 Article 48 of this Law;
d) At the request of a
competent authority in case an organization or individual violates regulations
of this Law or regulations of other laws and is required to be subject to the
electricity supply measures according to regulations of such laws.
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Section
3. ELECTRICITY PRICES AND ELECTRICITY-RELATED SERVICE PRICES
Article
50. Electricity prices
1. Retail electricity
price is prescribed as follows:
a) The retail electricity
price shall be set by the electricity retailer on the basis of the electricity
price policy, the price bracket of the average retail electricity price, the
mechanism for adjusting the average retail electricity price and the
electricity retail tariff structure;
b) The retail electricity
price is specific to each group of electricity consumers in a manner that is
appropriate to the socio-economic situation in each period and the level of the
competitive electricity market, including: manufacturing, business,
administrative and daily activities. The time-based retail electricity price is
applied to eligible electricity consumers, including the retail electricity
price during peak hours, off-peak and normal hours. For the group of domestic
electricity consumers, progressive pricing shall apply to consumers that are
not eligible to participate or do not participate in buying and selling
electricity on the competitive electricity market.
2. Wholesale electricity
price under a PPA shall be agreed upon by the electric utilities as prescribed
in point e clause 12 Article 5 of this Law.
3. The authority to set,
submit, approve and decide electricity prices is as follows:
a) The Government shall
regulate the mechanism and time for adjustment of the average retail
electricity price;
b) The Prime Minister shall
regulate the electricity retail tariff structure and the price bracket of the
average retail electricity price;
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d) The Minister of
Industry and Trade shall provide for the method of determining wholesale
electricity prices; methods of establishing and procedures for approving the
wholesale electricity price bracket.
Article
51. Electricity-related service prices
1. Electricity generation
service prices are prescribed as follows:
a) The price of a PPA
includes the following components: fixed price determined on average according to
the economic life of the project; operation and maintenance price and variable
price;
b) The price of the PPA
in base year shall be agreed upon by the electric utilities in the PPA. The
electricity seller and the electricity buyer have the right to sign a PPA at a
fixed price for each contract year on the basis of ensuring that the fixed
price remains unchanged;
c) In case an agreement
on the price of the PPA has not yet been reached, the electricity seller and
the electricity buyer may agree on a temporary price to be applied until the
official price is agreed;
d) In case of organizing
bidding to select investors in a power plant project, the price of the PPA
shall be determined by the electricity seller and the electricity buyer as
prescribed in points a, b and c of this clause and clause 2 Article 19 of this
Law;
dd) Prices of power
generation services for power plants invested in the form of PPP shall comply
with Article 16 of this Law;
e) Small renewable energy
power plants may apply the avoided cost tariff mechanism;
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2. The electricity buyer
and the electricity seller may agree on the price of the PPA on the principle
of ensuring that a power plan recoups its investment (if any) and expenses for
electricity production and trading activities and agree on a reasonable profit
level with regard to the following power plants:
a) The small renewable
energy plants specified in point e clause 1 of this Article as the time limit
for applying the avoided cost tariff has expired;
b) The power plants which
have been commercially operated as the time limit for applying the price of the
PPA has expired;
c) The power plants for
which the BOT contract has expired and which need to be transferred to the
Government as prescribed in Article 16 of this Law.
3. The Minister of
Industry and Trade shall provide for the dossiers, procedures and methods for
determining electricity generation price brackets; approve the electricity
generation price bracket established and submitted by electric utilities.
4. The Minister of
Industry and Trade shall regulate the method of determining the cost of
electricity generation of power plants during the period over which they have
yet to participate in the competitive electricity market in the following
cases:
a) The power plants
prescribed in clause 2 Article 5 of this Law;
b) Power plants
cooperating with power plants prescribed in clause 2 Article 5 of this Law in
operation to support the regulation of the system according to the list
prescribed by the Ministry of Industry and Trade;
c) Other power plants
which fail to determine the prices of electricity generation services.
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6. The Minister of
Industry and Trade shall elaborate the following contents:
a) Methods of setting,
dossiers and procedures for approving prices of electricity transmission
services, prices of electricity distribution services, prices of ancillary
services for power system, prices of power system dispatch and operation
services and prices of electricity market transaction regulation services;
b) Methods of providing
guidance on and forms of valuation of transmission grids invested in and built
by non-state economic sectors as prescribed in clause 4 Article 5 of this Law.
7. The Minister of
Industry and Trade shall approve prices of electricity transmission services,
prices of electricity distribution services, prices of ancillary services for
power system, prices of power system dispatch and operation services and prices
of electricity market transaction regulation services set and submitted by
electric utilities.
8. Based on the
characteristics of power plants from time to time, the Minister of Industry and
Trade shall decide the following contents:
a) Application of the
electricity generation price bracket to offshore wind power plants as
prescribed in this Law and power plants mentioned in clause 2 of this Law;
b) Multi-component
electricity price mechanism, including capacity add-on price, electrical energy
price, fixed price, variable price or other prices (if any).
Article
52. Bases for setting and adjusting electricity prices and electricity-related
service prices
1. Bases for setting
electricity prices include:
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b) National
socio-economic conditions;
c) Electricity supply and
demand;
d) Reasonable expenses
for electricity production and trading and reasonable profits of electric
utilities;
dd) Levels of the
competitive electricity market.
e) Annually audited
financial statements of electric utilities.
2. The adjustment of
average retail electricity price shall be made as follows:
e) The average retail
electricity price shall be reflected and adjusted promptly according to actual
fluctuations in input parameters to compensate for reasonable and valid
expenses and reasonable profits so as to preserve and develop business capital
of enterprises in a manner that is appropriate to socio-economic conditions
from time to time and levels of the competitive electricity market;
b) When the retail
electricity market is operated, the retail electricity price shall be applied
according to the market mechanism;
c) The Government shall
elaborate point a of this clause.
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4. Bases for adjusting
electricity generation service prices in signed PPAs:
a) Changes to policies
and laws promulgated by competent authorities, which adversely affect the
legitimate interests of electricity sellers or electricity buyers;
b) Complying with
competent authorities’ requests for review and adjustment of electricity
generation service prices;
c) An electricity seller
is assigned to invest in the construction, upgrade or renovate items (outside
the scope of investment management of the electricity generation unit in the
signed PPA) to implement planning or to fulfill new requirements for standards
and technical regulations as prescribed by law;
d) Optimizing the process
for management, production, technological change and innovation in electricity
production activities.
Chapter
VI
NATIONAL
POWER SYSTEM DISPATCH AND OPERATION
Article
53. Principles and requirements for dispatch and operation of national power
system
1. The dispatch and
operation of national power system shall adhere to the following principles:
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b) Ensure technical
constraints of the power system;
c) Meet the requirements for
flood management, irrigation, maintenance of minimum flow and downstream water
supply as prescribed by law;
d) Implement agreements
on electricity output and capacity in PPAs, electricity export and import on
the basis of ensuring the safety of the national power system, safeguarding the
interests of the State and the People; constraints on primary fuel consumption
for electricity generation approved by competent authorities;
dd) Carry out
techno-economic optimization of the power system;
e) Ensure fairness in
mobilizing capacity and electrical energy of power generation units in the
national power system.
2. Technical requirements
and requirements for commanding operation of the national power system:
a) Electricity generating
equipment, electrical grids and auxiliary equipment connected to the
transmission grid and distribution grid must satisfy the requirements for
connection and techniques for operation of the national power system;
b) The national power
system shall be commanded by a dispatch level vested with controlling rights,
including the national dispatch level, regional dispatch level, and
distribution dispatch level;
c) Each unit managing and
operating the power source and electrical grid shall obey the command of the
dispatch level vested with controlling rights; formulate a plan for maintenance
and repair of equipment under its management to ensure safe operation and
lessen the possibility of incidents, cooperate with relevant units in operation
to ensure the safe, stable and reliable operation of the power system.
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4. The Minister of
Industry and Trade shall regulate functions and tasks and grant of controlling
rights to the dispatch levels vested with control authority, principles of
dispatch and operation, incident handling, black start and restoration of the
national power system; requirements for techniques, connection, electricity metering
and operation of the electricity transmission and distribution system; directs
the formulation of power supply plans, inspection and supervision of power
supply and power system operation to balance the electricity supply and demand.
5. The Government shall
regulate emergency situations that severely threaten to interrupt electricity
supply as specified in clause 3 of this Article.
Article
54. Demand side management
1. Demand side management
involves encouraging and providing instructions for shifting of electricity
use; saving electricity, reducing electricity loss; lowering peak demand and
load difference between peak and off-peak hours.
2. Each electric utility
shall conduct electrical load research, design and organize the implementation
of the demand side management program to optimize the operation of the power
system.
3. Electricity consumers
shall participate in the demand side management program to optimize the
operation of the power system, decrease the capacity difference between peak
and off-peak hours of the power system load profile.
4. The Ministry of
Industry and Trade shall design and submit to the Prime Minister for approval a
national demand side management program which is appropriate to the
socio-economic condition from time to time and includes measures for demand
side management, financial mechanism and responsibilities of related parties.
The Minister of Industry and Trade shall stipulate the demand side management.
Article
55. Thrift practice in electricity generation, transmission, distribution and
use
1. Thrift practice in
electricity generation is provided for as follows:
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b) Self-consumption power
systems in power plants must be appropriately designed and installed, and used
during the operation process in a manner that is satisfies the requirements for
self-consumption power saving;
c) The Minister of
Industry and Trade shall specify the norms for self-consumption of power
plants.
2. Thrift practice in
electricity transmission and distribution is provided for as follows:
Transmission and distribution lines and electrical substations must meet
advanced techno-economic parameters and standards and be operated by optimal
methods in order to satisfy the requirements for stable, safe and constant
supply of electricity and take into account the economic efficiency of
solutions for reducing electrical energy loss.
3. Thrift practice in
electricity use is provided for as follows:
a) Organizations and
individuals using electricity for production shall improve and rationalize the
process for manufacture and application of technologies and electrical
equipment with low power consumption to save electricity; maintain the capacity
factor according to technical standards and minimize the underload use of
electrical equipment;
b) Organizations and
individuals that manufacture or import electrical equipment must meet the
advanced energy efficiency criteria so as to reduce the cost of electricity,
thus contributing to electricity saving;
c) Electricity-using
organizations shall promulgate regulations on thrift practice in electricity
use within their respective organizations.
Article
56. Electricity metering
1. Electricity sellers,
electricity generation units, electricity transmission units and electricity
distribution units shall invest in, install and manage all electricity metering
devices, auxiliary equipment for electricity metering and systems for
collecting and managing metering data, unless otherwise agreed upon by the
parties to safeguard their interests in compliance with regulations of law.
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3. The meter installation
positions must ensure safety and aesthetic appearance, and prime electricity
buyers to check meter readings and electricity sellers to record meter
readings.
4. Electricity metering
device owners shall carry out inspection, calibration and testing of metering
devices in accordance with the requirements and within the time limit specified
by regulations of law on measurement.
5. If it is suspected
that the electricity metering device operates inaccurately, the electricity
buyer is entitled to request the electricity seller to conduct a check; the
electricity seller must completely check, repair or replace it; in case of
electricity retailing, the electricity seller must completely check, repair or
replace it within 03 days from the date of receiving the electricity buyer's
request. In case of disagreeing with the result of the check, repair or
replacement by the electricity seller, the electricity buyer may request an
electricity authority affiliated to the provincial People’s Committee to carry
out an independent inspection. Within 15 days from the date of receiving the
request, the electricity authority affiliated to the provincial People’s
Committee shall carry out the inspection with an independent inspection
organization.
6. The cost of
electricity metering device inspection specified in clause 5 of this Article
shall be paid as follows:
a) Where the independent inspection
organization determines that the electricity metering device has satisfied
technical requirements for measurement, the electricity buyer shall pay the
inspection cost;
b) Where the independent
inspection organization determines that the electricity metering device has
failed to satisfy technical requirements for measurement, the electricity
seller shall pay the inspection cost and carry out retrospective collection or
refund disgorgement of electricity under the signed PPA and regulations of law.
Article
57. Electric power quality assurance
1. Electricity generation
units, electricity transmission units and electricity distribution units must
meet capacity, electrical energy and electricity supply duration standards laid
down in the signed agreements; ensure the compliance of voltage and
frequency with technical requirements promulgated by the Minister of Industry
and Trade. In case of failure to satisfy the voltage, frequency, capacity,
electrical energy and electricity supply duration standards under the signed
agreements causing damage to the electricity buyer, the electricity seller must
pay compensation to the electricity buyer according to regulations of law.
2. The electricity buyer
shall ensure that their electrical equipment operates safely so as not to cause
any breakdown to the power system and not to affect quality of voltage and
frequency of the electrical grid.
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RIGHTS AND
OBLIGATIONS OF ELECTRIC UTILITIES AND ELECTRICITY CONSUMERS
Article
58. Rights and obligations of electric utilities issued with electricity
licenses
1. An electric utility
issued with the electricity license has the right to:
a) Conduct electricity
activities according to the electricity license;
b) Apply for re-issuance,
extension, amendment or addition of electricity activities when fully
satisfying conditions as prescribed by law;
c) Be provided with
necessary information in accordance with regulations of law in the fields
covered by the electricity license;
d) Other rights as
prescribed by law.
2. An electric utility
issued with the electricity license has the obligation to:
a) Conduct electricity
activities according to the electricity license;
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c) Report to the
licensing authority at least 60 days before the date on which it stops
conducting electricity activities;
d) Do not lease or lend
out or arbitrarily modify any content of the electricity license;
dd) Apply for revision to
the electricity license after change of its name or registered business
address;
e) Report the conduct of
licensed electricity activities to the licensing authority before March 01
every year;
g) Other obligations as
prescribed by law.
Article
59. Rights and obligations of electricity generation units
1. An electricity
generation unit has the right to:
a) Establish connection
to the national power system when satisfying the technical conditions and
requirements;
b) Request a competent
authority to make amendments to relevant technical regulations and
techno-economic norms;
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d) Sell electricity to a
buyer under an electricity forward contracts, options contracts to buy or sell
electricity or electricity futures contracts and offer spot selling prices of
electricity on the competitive electricity market;
dd) Be provided with
necessary information relating to electricity generation activities;
e) Other rights as prescribed
by this Law and other relevant regulations of law.
2. An electricity
generation unit has the obligation to:
a) Ensure safe, stable
and reliable operation of generating sets and equipment in power plants,
prepare sufficient fuel to facilitate the adoption of operation methods and
satisfaction of operation requirements of the power system with the aim of
ensuring safe and constant supply of electricity;
b) Where human life and
safety of equipment are threatened, disconnect or reduce the electricity supply
if there is no alternative;
c) Comply with
regulations on dispatch and operation of the power system, electrical safety
and electricity market;
d) Follow operation
methods, command and control orders of dispatch levels vested with controlling
rights;
dd) Immediately notify a
dispatch level vested with controlling rights, organizations and individuals
concerned of any fault in electricity generation;
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g) Report information
relating to the readiness and reserve capacity of power plants and related
information at the request of the national load dispatch unit, electricity
market transaction regulation unit or competent authority;
h) Collect, treat and
recycle ash and slag generated from thermal power plants, solar panels, energy
storage equipment, wind turbine blades and other discarded electrical equipment
in accordance with regulations of law on environmental protection;
i) Other obligations as
prescribed by this Law and other relevant regulations of law.
Article
60. Rights and obligations of electricity transmission units
1. An electricity
transmission unit has the right to:
a) Establish connection
to the national power system when satisfying the technical conditions and
requirements;
b) Request a competent
authority to make amendments to relevant technical regulations and techno-economic
norms;
c) Set and submit prices
of electricity transmission services for approval;
d) Provide electricity
transmission services as prescribed;
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e) Enter the electricity
buyer’s premises to operate, maintain, repair or replace electrical equipment
of the electricity transmission unit;
g) Other rights
prescribed by this Law and other relevant regulations of law.
2. An electricity
transmission unit has the obligation to:
a) Provide transmission
services and ancillary services to relevant parties, protect the right of
organizations and individuals conducting electricity activities to establish
connection to the transmission grid which they are assigned to manage and
operate, except where the transmission grid is overloaded as certified by the
Ministry of Industry and Trade;
b) Where human life and
safety of equipment are threatened, disconnect or request a dispatch level
vested with controlling rights to reduce the electricity transmission if there
is no alternative;
c) Formulate a plan for
investment in transmission grid development and invest in the transmission grid
development to satisfy the electricity transmission demands under the PDP and
plant to implement PDP; invest in electricity metering devices and auxiliary
equipment, unless otherwise agreed with the electricity transmission unit,
electricity distribution unit or electricity buyer;
d) Ensure that the
electrical grid and equipment under its management are operated in a safe,
stable and reliable manner;
dd) Comply with
regulations on dispatch and operation of the power system, electrical safety
and electricity market;
e) Follow operation
methods, command and control orders of dispatch levels vested with controlling
rights;
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h) Report information relating
to the readiness and reserve capacity of equipment and other related
information at the request of the national load dispatch unit, electricity
market transaction regulation unit or competent authority;
i) Other obligations as
prescribed by this Law and other relevant regulations of law.
Article
61. Rights and obligations of electricity distribution units
1. An electricity
distribution unit has the right to:
a) Establish connection to
the national power system when satisfying the technical conditions and
requirements;
b) Request a competent
authority to make amendments to relevant technical regulations and
techno-economic norms;
c) Set and submit prices
of electricity distribution services for approval; provide electricity
distribution services as prescribed;
d) Enter the electricity
buyer’s premises to operate, maintain, repair or replace electrical equipment
of the electricity distribution unit;
dd) Be provided with
necessary information relating to electricity distribution activities;
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2. An electricity
distribution unit has the obligation to:
a) Provide electricity
distribution services for electricity consumers, electricity retailers and
electricity wholesalers in compliance with technical requirements, and
requirements for service quality and safety under agreements, except where the
distribution grid is overloaded as certified by an electricity authority
affiliated to the provincial People's Committee;
b) Formulate a plan for
investment in transmission grid development and invest in the transmission grid
development to satisfy the electricity demands according to the electricity
supply network development plan in the provincial planning; plan to implement
provincial planning containing contents of the electricity supply network
development plan; invest in electricity meters and lines transmitting
electricity to meters for the electricity buyer, unless otherwise agreed with
the electricity buyer;
c) Comply with
regulations on dispatch and operation of the power system, electrical safety
and electricity market, and operation methods at the request of a dispatch
level vested with controlling rights, adjust load, disconnect and reduce
electricity supply in accordance with regulations to ensure the power system is
operated in a safe and constant manner;
d) Where human life and
safety of equipment are threatened, disconnect or reduce the electricity
distribution if there is no alternative;
dd) Report information
relating to the readiness and reserve capacity of equipment and other related
information at the request of the national load dispatch unit, electricity
market transaction regulation unit or competent authority;
e) In case of any
emergency situation that severely threatens to interrupt electricity supply,
the electricity distribution unit shall mobilize backup generators of
electricity consumers to maintain the supply to the national power system;
g) Other obligations as
prescribed by this Law and other relevant regulations of law.
Article
62. Rights and obligations of electricity wholesalers
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a) Directly buy
electricity from any electricity seller under a power wholesale agreement;
b) Use electricity
transmission services, electricity distribution services, power system dispatch
services and electricity market transaction regulation services appropriate to
each level of the competitive electricity market;
c) Buy and sell
electricity on the competitive electricity market under a power wholesale
agreement, electricity forward contract, options contract to buy or sell
electricity or electricity futures contract; determine the wholesale
electricity price within the approved wholesale electricity price bracket;
d) Be provided with
necessary information relating to electricity wholesaling activities;
dd) Other rights
prescribed by this Law and other relevant regulations of law.
2. An electricity
wholesaler has the obligation to:
a) Sell electricity
according to the quantity, quality and prices agreed upon in agreements;
b) Pay compensation when
causing damage to the electricity buyer or electricity seller according to
regulations of law;
c) Abide by regulations
on operation of the competitive electricity market and electrical safety;
provide necessary information relating to the participation in the competitive
electricity market at the request of the national load dispatch unit,
electricity market transaction regulation unit or competent authority;
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Article
63. Rights and obligations of electricity retailers
1. An electricity
retailer has the right to:
a) Directly buy electricity
from any electricity seller under a PPA;
b) Compete to buy and
sell electricity on the competitive electricity market under a PPA, electricity
forward contract, options contract to buy or sell electricity or electricity
futures contract; determine the retail electricity price on the competitive
retail electricity market as prescribed;
c) Use electricity
transmission services, electricity distribution services, power system dispatch
services and electricity market transaction regulation services appropriate to
each level of the competitive electricity market;
d) Enter the electricity
buyer’s premises to check meters, record their readings, and contact consumers;
dd) Be provided with
necessary information relating to electricity retailing activities;
e) Other rights as
prescribed by this Law and other relevant regulations of law.
2. An electricity
retailer has the obligation to:
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b) Pay compensation when
causing damage to the electricity buyer or electricity seller according to
regulations of law;
c) Be provided with
necessary information relating to the amount of retailed electricity at the
request of the competent authority;
d) Inspect the execution
of PPAs;
dd) Comply with
regulations on operation of the competitive electricity market and electrical
safety;
e) Other obligations as
prescribed by this Law and other relevant regulations of law.
Article
64. Rights and obligations of the national load dispatch unit
1. The national load
dispatch unit has the right to:
a) Command and control
electricity generation units, electricity transmission units and electricity
distribution units to follow the national power system operation plan and
method;
b) Command the handling
of emergency or unusual situations in the national power system; mobilize
capacity and electrical energy of power plants in the national power system;
command the operation of transmission and distribution grids; disconnect or
reduce the electricity supply in case the safe and reliable operation of the
national power system is threatened;
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d) Set and submit prices
of power system dispatch and operation services for approval;
dd) Request relevant
electric utilities to provide information on technical specifications, readiness
for participation in operation and load carriage of equipment for electricity
generation, transmission and distribution; consumers’ electricity demands in
order to determine the method for operation of the national power system;
e) Assess the balance
between supply and demand of the power system;
g) Benefit from special
mechanisms and incentives provided by the Government for the maintenance of
infrastructure and other essential systems serving the dispatch and operation
of the power system, aiming to satisfy the requirements for operation and
contribute to ensuring electricity supply;
h) Be entitled to
priority mechanisms and incentives provided by the Government to attract high
quality human resources for the dispatch of the power system;
i) Other rights
prescribed by this Law and other relevant regulations of law.
2. The national load
dispatch unit has the obligation to:
a) Operate the national
power system in a safe, stable and economical manner;
b) Comply with regulations
on dispatch and operation of the national power system, electricity
transmission system and electricity distribution system promulgated by the
Minister of Industry and Trade;
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d) Notify the capacity,
amount of electricity and ancillary services mobilized for the electricity
market transaction regulation unit;
dd) Manage, operate,
maintain and service telecommunications and information system infrastructure
and specialized systems serving power system dispatch;
e) Promptly report to the
Ministry of Industry and Trade and notify the electricity market transaction
regulation unit of the emergency or unusual situations which seriously threaten
safe and reliable operation of the national power system;
g) Other obligations as
prescribed by this Law and other relevant regulations of law.
Article
65. Rights and obligations of electricity market transaction regulation units
1. An electricity market
transaction regulation unit has the right to:
a) Operate the spot
electricity market;
b) Request related
electric utilities to provide data in service of the regulation of electricity
market transactions on the competitive electricity market as per regulations of
law;
c) Invest in, install,
manage and operate the metering data collection system and metering data
management system under its management at each level of the competitive
electricity market;
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dd) Set and submit prices
of electricity market transaction regulation services for approval;
e) Benefit from special
mechanisms and incentives provided by the Government for the maintenance of
infrastructure and other essential systems serving the operation of the
electricity market;
g) Be entitled to priority
mechanisms and incentives provided by the Government to attract high quality
human resources for the operation of the electricity market;
h) Other rights
prescribed by this Law and other relevant regulations of law.
2. An electricity market
transaction regulation unit has the obligation to:
a) Comply with
regulations on the competitive electricity market;
b) Regulate and
coordinate transactions in trading of electricity and ancillary services on the
competitive electricity market;
c) Formulate and disclose
information about the electricity market operation plans in the coming years,
months and weeks, draw up schedules in the coming days and cycles;
d) Set and disclose spot
electricity prices and ancillary service prices;
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e) Manage, operate,
maintain and service electricity market information system infrastructure and
specialized telecommunications and information infrastructure serving power
system dispatch and electricity market transaction regulation;
g) Receive, appraise,
assess and confirm applications for participation in the electricity market of
units wishing to participate in the electricity market;
h) Supervise the
registration for participation in the electricity market by its members;
i) Other obligations as
prescribed by this Law and other relevant regulations of law.
Article
66. Rights and obligations of electricity consumers
1. An electricity
consumer has the right to:
a) Receive adequate
amount of capacity and electricity of the quality agreed upon in the agreement;
b) Request the
electricity seller to promptly resume the electricity supply after blackouts;
c) Receive compensation
for the damage caused by the electricity seller according to regulations of
law;
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dd) Be provided with
necessary information relating to electricity retailing activities and
electrical safety instructions;
e) Select the electricity
seller in the competitive retail electricity market;
g) Other rights
prescribed by this Law and other relevant regulations of law.
2. An electricity
consumer has the obligation to:
a) Pay fully and on
schedule electricity bills and adhere to other agreements in the PPA;
b) Use electricity in a
safe, economical and efficient manner; implement regulations on and programs
for demand side management to ensure the safe and continuous operation of the
power system;
c) Use electricity
transmission services, electricity distribution services, power system dispatch
services and electricity market transaction regulation services appropriate to
each level of the competitive electricity market;
d) Comply with
regulations on eligible end users and use electricity for its intended purposes
specified in the PPA;
dd) Promptly notify the
electricity seller of the unusual events that may cause a blackout or threaten
safety of people and property;
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g) Investing in
behind-the-meter transmission lines to the place of electricity use, except for
the case specified in clause 2 Article 17 of this Law; design the electrical
system in the project under their management to meet standards and technical
regulations as prescribed by law;
h) Ensure electrical
equipment satisfies technical requirements and requirements for electrical
safety and fire safety;
i) Pay compensation when
causing damage to the electricity seller according to regulations of law;
k) Protect the electric
meter placed in the location under their management as agreed upon in the PPA;
do not arbitrarily remove or move the electric meter. When it is needed to move
the electric meter, it is required to obtain the electricity seller’s consent
and bear the moving costs;
l) Other obligations as
prescribed by this Law and other relevant regulations of law.
3. A large electricity
consumer has the right to:
a) Exercise the rights
specified in clause 1 of this Article and use electricity transmission or
distribution services as specified in the agreement signed with the electricity
transmission unit or electricity distribution unit;
b) When participating in
the competitive electricity market, buy electricity directly from the
electricity generation unit via a PPA, electricity forward contract, options
contract to buy or sell electricity, electricity futures contract or spot
agreement on the competitive retail electricity market.
4. A large electricity
consumer has the obligation to:
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b) Implement the regime
for electricity use at the request of a dispatch level vested with controlling
rights, measures to satisfy requirements for electricity quality satisfy and
electrical safety and other regulations agreed upon in the PPA and agreement
signed with the electricity transmission unit or electricity distribution unit.
Chapter
VIII
PROTECTION
OF ELECTRICITY WORKS AND SAFETY IN ELECTRICITY FIELD
Section
1. PROTECTION OF ELECTRICITY WORKS AND ELECTRICAL SAFETY
Article
67. Assurance of safety of electricity works
1. Electric utilities,
organizations and individuals shall assure safety of overhead transmission
lines, underground electrical cables, transformer substations, power plants and
other electricity works as prescribed by law. Land users shall enable electric
utilities to access electricity works for inspection, repair, maintenance and
incident recovery.
2. When constructing,
renovating, repairing or expanding any electricity work or other works that may
affect each other, the electric utility and related organizations and
individuals have the responsibility to:
a) Cooperate in
synchronous implementation of measures to ensure electrical and construction
safety;
b) Promptly notify a competent
authorities, organizations and individuals concerned upon discovering any risk
or event that threatens safety of the electricity work;
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3. When any electricity
work or electrical equipment is no longer in operation, it must be handled,
dismantled and managed in a safe manner as per regulations of law on
construction and law on environmental protection.
4. Ministries,
ministerial agencies, Governmental agencies and People's Committees at all
levels shall, within their jurisdiction, organize the implementation of
regulations on the assurance of safety of electricity works in this Law and
other relevant laws; carry out inspection, prevent, and promptly impose
penalties for violations against the law on assurance of safety of electricity
works.
5. The Government shall
elaborate clauses 1 and 2 of this Article.
Article
68. Safety corridors of electricity works
1. The safety corridor of
an electricity work means an area which surrounds the electricity work that
needs protecting to ensure the safety of people and electricity work. The
safety corridor can be overhead, on the ground, underground, on water or under
water depending on each type of electricity work.
2. Electricity work
safety corridors include:
a) Safety corridors of
overhead transmission lines;
b) Safety corridors of
underground electric cables;
c) Safety corridors of
transformer substations;
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3. The use of land within
the safety corridor of an electricity work is provided for as follows:
a) Land in the
electricity work safety corridor may continue to be used for the purposes
determined in accordance with law; land use must not affect the assurance of
safety of the electricity work. The land user shall receive compensation and
assistance due to restrictions on land use or damage to property attached to
land according to the law on land;
b) In case the use of
land within the electricity work safety corridor affects the safety of the
electricity work, the land user must cooperate with the electric utility in
taking remedial measures;
c) If the remedial
measures specified in point b of this clause still fail to ensure the safety of
the electricity work, the State shall expropriate land and provide compensation
as prescribed by law. The compensation, assistance and resettlement upon the
State’s expropriation of land within the electricity work safety corridor shall
comply with regulations of law on land;
d) Where the safety
corridor of an electricity work overlaps that of another work, further actions
shall be taken according to the Government’s regulations.
4. The safety corridor of
an offshore electricity work is part of the sea area assigned to implement an
electricity project. The use of sea area within the safety corridor of the
offshore electricity work shall comply with the following regulations:
a) Use marine resources
in an economical and efficient manner;
b) Ensure the safety of
people, electricity works and other legal activities in service of exploitation
and use of marine resources according to regulations of law;
c) Ensure the safety of
organisms, wild animals and migratory birds in accordance with the law on
biodiversity and treaties to which the Socialist Republic of Vietnam is a
signatory.
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6. Trees inside and
outside the electricity work safety corridor must maintain a safety distance of
electrical discharge by voltage level. In case the growth of a tree encroaches
upon the safety distance of electrical discharge, the tree owner and land user
must promptly trim the encroaching branches. In case a tree encroaches upon the
safety distance of electrical discharge causing a fault in the electrical grid,
the tree owner and land user shall, depending on the degree of the damage,
incur a penalty as prescribed by law. The electric utility shall cooperate with
a local competent authority in trimming trees encroaching upon the safety
distance of electrical discharge in areas where the tree owners are
unidentifiable.
7. Houses, works and
activities must satisfy safety conditions to be permitted to exist within the
electricity work safety corridor. The owner or occupier of a house or work
which is permitted to exist within the electricity work safety corridor must
not use the roof or any part of such house or work in a manner that encroaches
upon the safety distance of electrical discharge by voltage level and must
comply with regulations on assurance of safety of electricity works upon repair
and renovation of houses and works.
8. Houses and works where
people live or work are not permitted to exist within safety corridors of
overhead transmission lines of 500 kV or higher, except for specialized works
in service of operation of such electrical grid.
9. People's Committees at
all levels shall, within their jurisdiction, formulate and implement the
relocation, resettlement and land clearance plan; provide compensation for loss
of land or property; manage and protect the area of land or sea area reserved
for projects and electricity work safety corridor.
10. The Government shall
elaborate this Article.
Article
69. General regulations on electrical safety
1. Persons who directly
build, repair, renovate, manage and operate power systems and electricity
works; inspect electrical equipment and instruments and perform other tasks
directly related to power systems must be trained in and tested on electrical
safety and issued with electrical safety cards.
2. Investors in
electricity projects, organizations and units managing, operating, building,
repairing and renovating electricity works and conducting activities using
electricity for production have the responsibility to:
a) Comply with standards
and technical regulations on electrical engineering, electrical safety and
regulations of law on electrical safety;
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c) Organize or hire a
sufficiently competent unit to organize electrical safety training and testing
and issuance of electrical safety cards to workers in clause 1 of this Article
under their management;
d) When an electrical
incident or accident occurs, measures must be immediately taken to remedy the
incident or accident, provide first aid, evacuate people from the dangerous
area and promptly report such to competent authorities;
dd) Follow the regime for
reporting of electrical safety and violation of electricity work safety
corridors.
3. Manufacturers and
traders of electrical equipment and instruments must be responsible for the quality
of products and goods according to regulations of law; provide customers with
instructions for installation, use, preservation and maintenance of electrical
equipment and instruments to ensure safety according to regulations.
4. Electricity shall be used
as a direct means of protection only when other protection measures have been
applied inefficiently in areas where electric fences are permitted for erection
prescribed by the Minister of Public Security and Minister of National Defense
and safety conditions set out by the Minister of Industry and Trade must be
satisfied.
5. The Minister of
Industry and Trade shall promulgate technical regulations on electrical
engineering and electrical safety as prescribed in point a clause 2 of this
Article; regulate the inspection of safety in electricity generation,
electricity transmission, electricity distribution and electricity use.
6. The Ministry of
Industry and Trade shall preside over and cooperate with relevant ministries
and central authorities and provincial People’s Committees in promulgating and
organizing the implementation of the National Program for Safety in Electricity
Use.
7. The Minister of
Construction shall regulate requirements for power systems for houses and works
in accordance with law on construction.
8. Provincial People's
Committees shall promulgate regulations on management of safety in electricity
use in their provinces; organize inspection of safety in electricity use under
regulations of this Law and other relevant regulations of law; disseminate and
provide guidance on regulations on management of safety in electricity use to
electricity users and raise their awareness of such regulations.
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Article
70. Inspection of technical safety of electrical equipment and instruments
1. Electrical equipment
and instruments on the list specified in clause 4 of this Article must be
inspected before being put into use. During their use and operation, standards
and technical regulations must be satisfied as prescribed by law.
2. The inspection of
technical safety of electrical equipment and instruments must be performed by
an organization that meets the conditions for provision of inspection services
and has its registration of inspection of product and goods quality certified
by the Ministry of Industry and Trade in accordance with regulations of law on
product and goods quality.
3. The Ministry of
Industry and Trade and provincial People's Committees shall, under their
authority, audit and examine the inspection technical safety of electrical
equipment and instruments.
4. The Minister of
Industry and Trade shall regulate the list of electrical equipment and
instruments subject to inspection; inspection contents; inspection cycle;
inspection process; responsibilities of organizations and individuals for
inspection of technical safety of electrical equipment and instruments.
Article
71. Safety in electricity generation
1. Organizations and
individuals investing in the construction, management and operation of
electricity generation works must comply with general regulations on electrical
safety set out in Article 69 of this Law and the following regulations:
a) Regulations on safe
environmental distance from residential areas as specified in the law on
environmental protection;
b) Standards and
technical regulations on construction, electrical engineering, electrical
safety, fire safety and environmental protection;
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d) Conduct of periodic
technical safety assessment as prescribed by the Minister of Industry and
Trade.
2. In the event of
electricity-related fire, explosion, incident or accident, the investor or the
unit in charge of management and operation shall promptly apply measures to
rescue victims from dangerous areas, provide first aid and emergency care for
victims; handle and eliminate the possibility that the fire, explosion,
incident or accident continues to cause danger so as to reduce damage to people
and property; implement measures to ensure electrical safety of forces and
means mobilized to handle the fire, explosion, incident or accident; determine
the cause and implement remedial measures after fire, explosion, incident or
accident according to regulations.
Article
72. Safety in electricity transmission and distribution
1. Investors in
electrical substations and electrical grids shall adhere to general regulations
on electrical safety set forth in Article 69 of this Law. The construction,
management and operation of electrical substations and electrical grids must
conform to the construction planning and regulations of law on ensuring safety
of railway, road and inland waterway facilities, navigational channels and
other relevant regulations of law.
2. At the intersections
between overhead transmission lines, roads, railways, navigational channels,
inland waterway channels and electrical cables running underground or running
in conjunction with other works must maintain a safety distance according to
the Government’s regulations. The installation and renovation of other power
lines running in conjunction with overhead transmission lines must ensure
safety and urban aesthetics and must be permitted by the investor in overhead
transmission lines. Investors and units managing and operating overhead
transmission lines and underground electrical cables shall establish, manage,
maintain and service specialized signals according to the provisions of law.
3. When transferring an
electrical grid, the investor must transfer to the unit in charge of managing
and operating the electrical grid all technical documents, operation process,
maintenance process, minutes of acceptance records, decision on land allocation
or land lease and documents relating to compensation, land clearance,
compensation for damage due to restrictions on land use, environmental
protection and fire safety according to regulations of law.
4. The electrical grid
management and operation unit must periodically organize inspection, technical
maintenance and repair of electrical grids, ensuring that they operate safely
according to regulations; regularly inspect, detect and prevent violations of
regulations on electrical safety and electricity work safety corridors and
cooperate in adoption of technical solutions and optimal operation to reduce
electricity loss during the electricity transmission process.
5. When repairing and
maintaining an electrical grid, the electrical grid management and operation
unit and the unit responsible for repair and maintenance must fully and
correctly implement safety measures according to technical regulations on
electrical safety.
6. Lightning protection
and earthing equipment and systems of electrical substations, transmission and
distributions grids must be installed according to their design, tested,
accepted and periodically inspected according to standards and technical
regulations on electrical engineering and electrical safety.
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1. Organizations and
individuals using electricity for production must comply with general
regulations on electrical safety specified in Article 69 of this Law and the
following regulations:
a) Electrical equipment
must ensure quality according to corresponding standards and technical
regulations;
b) Electrical equipment
and instrument systems, lightning protection and earthing systems must be
accepted, undergo periodical and surprise inspection and technical safety
inspection and be repaired and maintained according to standards and technical
regulations on electrical engineering and safety, and other relevant
regulations of law. The diagrams of these systems must reflect their actual
status and archived together with repair and maintenance documents and
inspection records throughout their operation.
c) Electrical grids under
management of electricity users must be installed, managed and operated
according to standards and technical regulations on electrical engineering and
safety, and other relevant regulations of law.
d) Transmission lines
must be designed and installed so that production premises are clear and airy,
thus avoiding mechanical or chemical impacts which may cause breakdowns. Metal
structures of factories, machinery, metal tubes and lightning conductors must
not be used as neutral conductors;
dd) The power system in
areas where inflammable substances exist must be designed, installed and used
according to regulations on fire and explosion prevention and fighting; only
specialized equipment and tools for fire and explosion preventing and fighting
shall be used as prescribed by law.
2. Every electricity
seller shall maintain safe and constant supply of electricity to facilitate
production as prescribed by law. At the request of a competent authority, the
electricity seller shall inspect safety of electricity consumers’ power
systems. In case of detecting any safety risk, preventive measures must be
promptly taken or the electricity supply shall be disconnected.
Article
74. Safety in use of electricity for domestic and commercial purposes
1. Agencies,
organizations and individuals using electricity for domestic and commercial
purposes shall:
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b) Install conductors
from electricity meters to houses, works and areas using electricity in such a
manner as to ensure quality and safety and not to hinder traffic activities;
c) Provide information
about the power systems in houses and works and electricity demand when signing
PPAs;
d) Ensure safety of power
systems in houses and works which they own, manage or use. Regularly check,
promptly repair and replace conductors and electrical equipment that do not meet
quality standards. When an electrical incident occurs, measures shall be in
place to prevent the fire from spreading to other objects and equipment in the
houses and works and the electricity seller and local competent authorities
must be promptly notified thereof;
dd) Cooperate with
competent authorities in inspecting safety in electricity use.
2. Electricity sellers
have the responsibility to:
a) Provide instructions
on the installation and use of power systems and electrical equipment to ensure
safety; provide electricity consumers with information on risks of threatening
safety in electricity use and measures to ensure electrical safety;
b) Apply digital
technology to inform electricity consumers of the risks of threatening
electrical safety during electricity use;
c) Periodically organize
activities to disseminate and provide guidance on regulations on safety in
electricity use to electricity consumers and raise their awareness of such
regulations;
d) At the request of a
competent authority, the electricity seller shall cooperate in inspecting
safety of electricity consumers’ power systems. In case of detecting any safety
risk, preventive measures must be promptly taken or the electricity supply
shall be disconnected as prescribed by law.
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Section
2. SAFETY OF HYDROPOWER WORKS
Article
75. Principles of management of hydropower work safety
1. Ensuring the safety of
dams and hydropower reservoirs is a top priority in investment in construction,
management and operation of hydropower works.
2. Safety management of
hydropower works must be performed regularly and continuously throughout the
process of survey, design, construction, management, operation and protection
of hydropower works in compliance with this Law, law on construction, safety of
dams and reservoirs, law on water resources, law on natural disaster management
and law on environmental protection.
3. Owners of,
organizations and individuals managing and operating hydropower works shall assume
responsibility for the safety of hydropower works they own and invest in and
shall synchronously apply advanced technical infrastructure solutions to the
management and exploitation of hydropower works so as to ensure safety, promote
the efficiency in comprehensive exploitation and serving of multiple purposes
of hydropower works, thereby contributing to ensuring safety of downstream
areas of dams.
4. In case an incident
occurs during management and operation of a dam or hydropower reservoir, the investor
and the management and operation unit shall cooperate with competent
authorities in implementing a response plan and remedial measures to ensure the
safety of the dam, hydropower reservoir or downstream area of the dam and
bear other responsibilities according to regulations of law.
5. Hydropower works are
classified and graded to facilitate the design, construction, management,
operation, maintenance, servicing, monitoring and inspection for assurance of
their safety.
6. The Minister of
Industry and Trade shall promulgate technical regulations on hydropower works.
7. The Government shall
elaborate clause 5 of this Article.
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1. During the
construction of a hydropower work, the investor and construction unit must
comply with regulations of law on dam and reservoir safety and law on
construction.
2. During the
construction process of a new hydropower work project, the investor shall
tailor a disaster response plan for the hydropower work and downstream area of
the hydropower dam, submit it to a competent authority for approval and
organize its implementation in accordance with regulations of law on natural
disaster management. For an expansion investment project, the investor shall
preside over and cooperate with the existing construction management unit in
tailoring a disaster response plan for the hydropower work and downstream area
of the hydropower dam, submit it to a competent authority for approval and
organize its implementation in accordance with regulations of law on natural
disaster management.
3. The investor shall
organize the establishment of hydropower reservoir operation procedures,
emergency situation response plan, hydropower dam and reservoir protection
plan, and submit them to competent authorities for appraisal and approval
before filling water and assigning them to management and operation
organization, electricity, irrigation, water resources and natural disaster
management authorities.
4. Before approving the
first water filling, the investor must fulfill its responsibilities and
obligations according to this Law, law on construction, law on land, law on
water resources, law on forestry and law on environmental protection. The first
water filling plan must be notified to the authority competent to approve the
hydropower reservoir operation procedures and People's Committees at all levels
in the locality 10 days before the date of first water storage.
5. The authority to
appraise and approve hydropower reservoir operation procedures, emergency
situation response plans and hydropower dam and reservoir protection plans is
prescribed as follows:
a) The Ministry of
Industry and Trade shall appraise and approve the hydropower reservoir
operation procedures and hydropower dam and reservoir protection plans for
hydropower works of special significance and hydropower works located in at
least 02 provinces;
b) Provincial People's
Committees shall appraise, approve or decentralize authority to management
agencies under their management to appraise and approve hydropower reservoir
operation procedures, emergency situation response plans and hydropower dam and
reservoir protection plans for hydropower works in areas under their
management, except for the subjects specified in point a of this clause.
6. The Government shall
elaborate clauses 3 and 4 of this Article; regulate applications and procedures
for appraising and approving the procedures and plans specified in clause 5 of
this Article.
Article
77. Safety in stage of management and operation
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a) Operation of
hydropower works must comply with inter-reservoir operation procedures,
hydropower reservoir operation procedures, emergency situation response plans,
and hydropower dam and reservoir protection plans approved by competent
authorities;
b) Follow procedures for
registration of hydropower dam and reservoir safety; carry out monitoring of
hydropower dams and reservoirs, reservoir sedimentation; carry out monitoring
of specialized hydrometeorological monitoring; conduct periodic or surprise
inspection of works; inspect and evaluate the safety of hydropower dams and
reservoirs; formulate a plan for and carry out maintenance, repair, upgradation
and modernization of works and equipment; protect and ensure the safety of
works and downstream areas of hydropower dams and reservoirs; archive records
according to regulations;
c) Install and maintain
stable operation of water discharge warning system, surveillance cameras, water
level monitoring equipment, online information transmission system and
specialized monitoring equipment, and update information and data to the
hydropower work operation database system according to regulations;
d) Organize inspection
and assessment of hydropower dam and reservoir safety and follow the regime for
reporting of hydropower dam and reservoir safety before and after the annual
rainy season;
dd) Assign personnel that
have appropriate expertise, and receive regular training and refresher courses
on knowledge and skills in management of hydropower dam and reservoir
safety to perform management of hydropower dam and reservoir safety
2. Every 05 years or upon
any change of the scale of the hydropower work or its item, its owner shall
review and adjust hydropower reservoir operation procedures, emergency situation
response plan and hydropower dam and reservoir protection plan approved by the
competent authority.
3. Prior to the annual
rainy season, the competent authority shall inspect the assessment of
hydropower dam and reservoir safety by hydropower work owners.
4. The Ministry of
Industry and Trade shall build, manage and operate the hydropower work
operation database system. The costs of maintenance of the hydropower work
operation database system shall be covered by the state budget and other lawful
sources of capital according to regulations of law.
5. The Government shall
elaborate this Article.
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1. The protection
corridors of hydropower works including dams, reservoirs, energy routes,
hydropower plants, other auxiliary works and their vicinity shall be determined
according to the class of hydropower works; when adjusting their scale and
uses, the vicinity must be adjusted in accordance with law. The vicinity
specified in this clause includes the vicinity of dams, vicinity of energy
routes and vicinity of hydropower reservoir beds.
2. Each hydropower work
owner shall plant hydropower work protection corridor boundary markers and
provide funding for planting and maintenance of hydropower work protection corridor
boundary markers.
3. Organizations and
units managing and operating hydropower works shall implement hydropower work
protection plans approved by competent authorities; cooperate with local
regulatory bodies to inspect activities conducted within hydropower work
protection corridors; promptly report to competent authorities when detecting
any activity that poses a risk to the safety of hydropower works.
4. The implementation of
a plan to protect significant hydroelectric works related to national security
shall comply with this Law and law on protection of significant works related
to national security.
5. Any activity within a
hydropower work protection corridor shall satisfy requirements for safety of
hydropower dams and reservoirs.
6. The exploration and
mining of sand and gravel and dredging combined with recovery of minerals in
hydropower reservoir beds must ensure safety of hydropower dams and reservoirs
as prescribed in clause 5 of this Article and comply with regulations of law on
geology and minerals and law on water resources.
7. Any existing work
within hydroelectric work protection corridors may continue to be used for
their intended purposes determined in accordance with law. In case the existing
work affects the safety and operational capacity of the hydropower work,
remedial solutions must be implemented according to the requirements laid down
by local regulatory bodies; in case of failure to implement remedial solutions,
such existing work must be dismantled or relocated according to regulations of
law on construction and other relevant regulations of law.
8. The Government shall
elaborate clauses 1 and 5 of this Article.
Chapter
IX
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Article
79. Amendments to some Articles and clauses of relevant laws
1. The Law on
Construction No. 50/2014/QH13 amended by the Law No. 03/2016/QH14, Law No.
35/2018/QH14, Law No. 40/2019/QH14, Law No. 62/2020/QH14, Law No. 45/2024/QH15,
Law No. 47/2024/QH15, Law No. 54/2024/QH15 and Law No. 55/2024/QH15 is amended
as follows:
a) Point a clause 2 of
Article 52 is amended as follows:
“a) For projects of
national significance, Group A projects using public investment capital; PPP
projects under regulations of law on investment in public-private partnership
form; projects subject to investment guideline approval by the National
Assembly or the Prime Minister as prescribed by the Law on Investment,
electricity projects that organize bidding to select investors in accordance
with the Electricity Law, the formulation of a construction investment
pre-feasibility study report is compulsory;”;
b) Point i1 is added
after point i and point k clause 2 of Article 89 is amended as follows:
“i1) Offshore
installations of offshore wind power projects to which sea area is assigned by
a competent authority for project execution;
k) Investors in
construction of the works prescribed in points b, e, g, h, i and i1 of this
clause, except detached houses prescribed in point i of this clause, shall send
notices of the time of construction commencement and construction design
dossiers according to regulations to local construction authorities for
management.”.
2. Clause 1 Article 3 of
the Law on Natural Resources, Environment of Sea and Islands No. 83/2015/QH13
amended by the Law No. 35/2018/QH14 and Law No. 18/2023/QH15 is amended as
follows:
“1. Natural resources of
sea and islands include biological resources and non-biological
resources within seawater column, seabed, subsoil, on sea surface, coastal
areas, archipelago, archipelagoes, islands, low-tide elevations and submerged
features (hereinafter referred to as “islands”) that belong to sovereignty,
sovereign rights and national jurisdiction of Vietnam.”.
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2
Natural gas pipeline
transportation services and liquefied natural gas storage, regasification,
transportation and distribution services for electricity production
The Ministry of
Industry and Trade sets specific prices
Article
80. Effect
1. This Law comes into
force from February 01, 2025.
2. The Law on Electricity
No. 28/2004/QH11 amended by the Law No. 24/2012/QH13, Law No. 28/2018/QH14, Law
No. 03/2022/QH15, Law No. 16/2023/QH15 and Law No. 35/2024/QH15
(hereinafter referred to as “the Law on Electricity No. 28/2004/QH11”) shall
cease to have effect from the effective date of this Law, except for the case
specified in clauses 1, 2, 3 and 4 Article 81 of this Law.
Article
81. Transitional clauses
1. If bidding documents
for an electricity business investment project has been approved and issued
before the effective date of this Law, the investor selection, signing
and management of performance of the contract for that project shall still
comply with provisions of the Law on Electricity No. 28/2004/QH11 and other
instruments providing details and instructions about implementation thereof.
The Government is required to specify the application of transitional clauses
to the bidding for selection of investors for execution of electricity business
investment projects.
2. Any PPA signed before
the effective date of this Law shall continue to be executed according to the
signed agreements. In case there are regulations different from those on the
levels of the competitive electricity market in accordance with this Law, the
parties must revise the agreement to make it suitable for these levels.
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4. In case an
organization has submitted a valid application for issuance or revision of its
electricity operation license to the licensing authority before the effective
date of this Law but has not yet been granted an electricity license, the
license shall be issued as per the Law on Electricity No. 28/2004/QH11. In case
an organization applies for the issuance, revision, re-issuance or extension of
its electricity license in accordance with this Law, the license shall be
issued as per this Law.
5. Regarding any project
on investment in construction of an electrical grid with a voltage of 220 kV or
lower passing through at least 02 provinces for which a valid application for
approval or adjustment of investment guidelines has been received by the
Ministry of Planning and Investment before the effective date of this Law, it
may continue to be implemented in accordance with the Law on Investment No.
61/2020/QH14 amended by the Law No. 72/2020/QH14, Law No. 03/2022/QH15, Law No.
05/2022/QH15, Law No. 08/2022/QH15, Law No. 09/2022/QH15, Law No. 20/2023/QH15,
Law No. 26/2023/QH15, Law No. 27/2023/QH15, Law No. 28/2023/QH15, Law No.
31/2024/QH15, Law No. 33/2024/QH15, Law No. 43/2024/QH15 and Law No.
57/2024/QH15.
6. For any project on an
electrical grid with a voltage of 220 kV or lower passing through at least 02
provinces which has its investment guidelines approved by the Prime Minister
before the effective date of this Law and is now subject to investment
guideline approval by the provincial People’s Committee as specified in point a
clause 2 Article 13 of this Law, the provincial People’s Committee shall be the
authority having power to approve adjustments to investment guidelines.
This Law is adopted by
the 15th National Assembly of Socialist Republic of Vietnam on this
30th of November 2024 during its 8th session.
CHAIRMAN OF THE NATIONAL ASSEMBLY
Tran Thanh Man