MOIT approves Electricity generation price framework for pumped storage hydropower plants in 2025
10:27 | 08/05/2025
Under the new framework, the maximum generation price applicable to pumped storage hydropower plants is VND 3,457.02 per kilowatt-hour (kWh), exclusive of value-added tax (VAT). This pricing framework will be the basis for negotiating power purchase agreements between developers of pumped storage hydropower projects and the electricity buyer.
The decision outlines the technical and economic parameters used to determine the ceiling price, including:
- Installed capacity: 1,188 MW
- Economic life of the plant: 40 years
- Estimated investment cost: VND 17,934,713/kW (subject to revision upon approval of the feasibility study and appraisal of the basic design)
- Auxiliary power consumption and transformer losses: 1%
- Annual peak operating hours: 1,310 hours
- Average annual net energy delivered: 1,556,280,000 kWh
- Pumping-to-generation energy ratio: 1.44
- Off-peak retail electricity price: VND 1,094/kWh (As stipulated in Decision No. 2699/QD-BCT dated October 11, 2024)
Previously, MOIT also approved the 2025 electricity generation price framework for conventional hydropower plants, with a price range of VND 0–1,110/kWh, exclusive of water resource tax, forest environment service fees, licensing fees for water resource exploitation, and VAT.
