Vietnam's new Law on Electricity (LoE), effective February 1, introduces key changes to the energy sector:
State Monopoly: The state retains control over critical activities like dispatching the national power system and operating nuclear, strategic hydropower (multipurpose), and 220kV+ transmission grids.
Private Sector: Encourages private investment in power projects and grid development aligned with Power Development Plan VIII (PDP8).
Renewable Energy: Prioritizes renewable projects with battery storage or green hydrogen/ammonia production. Incentives include fee exemptions and long-term contracts.
Offshore Wind (OSW): Prioritizes OSW projects supplying the national grid. Investor selection is based on competitive bidding with capped electricity prices. Nearshore wind projects are within 6 nautical miles, OSW beyond.
Pricing: Shifts towards market-based pricing with state regulation, aiming to reduce cross-subsidies and promote a competitive electricity market.