Simultaneous amendments to Circulars 09 and 12/2025 on the electricity generation price framework and electricity import prices

Under Circular 54, multiple provisions in Circular 09 have been revised. Notably, several additional categories of power plants are now required to apply the new generation price framework, including:

• Power plants that have reached the end of their applicable tariff period or power purchase agreements;

• BOT projects that have completed the transfer process to the State.

• Small-scale renewable energy plants are no longer eligible for the avoided cost tariff mechanism.

As a result, the generation price framework will become an important reference for market participants once their preferential periods or long-term contracts expire.

Circular 54 also clearly defines the scope of regulation, applying to organizations and enterprises that own or operate power plants within Vietnam’s territory. Certain entities are excluded, such as strategic multi-purpose hydropower plants; renewable energy projects still receiving avoided cost tariff incentives; units dedicated to providing ancillary services; and standalone battery energy storage systems.

A significant new development is the introduction of the concept of the “flexible power plant” into legal documents for the first time. This includes plants using Reciprocating Internal Combustion Engine (RICE) technology or Aero-GT aeroderivative gas turbines—both capable of rapid start-up and modular configuration, suitable for balancing real-time supply and demand and stabilizing the grid amid the growing share of renewable energy.

In addition, concepts and calculation methods relating to pumped storage hydropower plants have been updated, accurately reflecting the characteristics of energy storage technologies that use elevation differences between reservoirs to pump and generate electricity as required by the system.

Circular 54/2025/TT-BCT also revises several components in the methodology for determining the electricity generation price framework, including the calculation of investment costs, discount rates, loan interest rates, domestic and foreign capital structures, and other mandatory input parameters. These parameters are now clearly regulated in terms of data sources, averaging periods, and legal bases to ensure transparency, scientific consistency, and ease of implementation.

Circular 54 will take effect on November 21, 2025. During implementation, if any issues arise, relevant organizations and individuals are required to report them for review and adjustment by the Ministry of Industry and Trade to ensure alignment with actual market conditions and system operation requirements./.