UPDATE ON PRICING MECHANISM AND MODEL PPA FOR POWER GENERATION PROJECTS

On 12 April 2024, the MOIT issued Circular 07 which will take effect on 1 June 2024 and replace Circular 57.

In Vietnam, private power generation projects (or IPP projects) are subject to a regulated legislative regime on Model  PPA and tariffs. The currently effective
Circular 57 sets out the methods to calculate electricity generation prices and provides a Model PPA for power plants except for, among others, renewable energy, mini-hydropower applying avoidable cost tariffs (ACT) and multi-purposed hydropower projects. In other words, the pricing mechanism and Model PPA would apply to coal-fired power plants, gas-fired power plants, LNG-to-power plants, hydropower plants having capacity of 30MW or above, and mini-hydropower plants voluntarily participating in the competitive electricity market (collectively, Applicable Projects).

Click here to read the full update.