In early March 2025, the electricity and energy sector issued new decrees, creating new changes for renewable energy enterprises. Of which, the Vietnam Oil and Gas Technical Services Corporation (PTSC) is expected to benefit the most.
Decree 58/2025/ND-CP clarifies incentives and implementation guidelines for offshore wind power, bringing the most benefits to PTSC
Specifically, in the energy sector , on March 3, 2025, the Government issued Decree 58/2025/ND-CP, detailing the main provisions of the Electricity Law on the development of renewable energy sources and new energy. Decree 58/2025/ND-CP details incentives for offshore wind power/rooftop solar power/new renewable energy, actively supporting businesses in this sector, most notably PTSC.
Decree 58/2025/ND-CP took effect on the same day with highlights such as: Offshore wind power is given incentives when the minimum long-term contracted electricity output (Qc) is 80% (maximum 15 years) and exemption/reduction of fees for using sea areas; providing clearer directions on project implementation and foreign investment.
Self-produced, self-consumed rooftop solar power (RTS-SPSC) allows surplus output to be sold to Vietnam Electricity Group (EVN) up to 20% of installed capacity.
Regarding battery energy storage systems (BESS), grid-connected renewable energy projects with BESS will be prioritized for mobilization during peak hours, except for self-production and self-consumption projects; support for research and development of wind and solar power technology.
The conditions for new energy projects to enjoy incentives are that projects that produce electricity entirely from green hydrogen, green ammonia or a combination of both and supply to the national grid will be eligible for incentives if they are the first projects of their kind. These incentives include: Exemption/reduction of sea area usage fees and land rent; allowing a minimum long-term Qc output of 70% (up to 12 years).
Vietcap Securities believes that Decree 58/2025/ND-CP has clarified incentives and implementation guidelines for offshore wind power and RTS-SPSC, bringing the most benefits to PTSC; at the same time, bringing a slight positive impact to renewable energy stocks such as REE and PC1.
Decree 57/2025/ND-CP regulating direct power purchase agreements (DPPA) may bring slight benefits to REE, PC1, HDG and TV2
In the electricity sector , the Government issued Decree 57/2025/ND-CP dated March 3, 2025 regulating direct power purchase agreements (DPPA) between renewable energy generators and large electricity users, replacing Decree 80/2024 from July 2024 with specific details, which has had a slight positive impact on renewable energy businesses.
Positive developments were observed in the minimum electricity consumption threshold of 200,000 kWh/month for large end customers which was abolished and replaced by periodic requirements prescribed by the Ministry of Industry and Trade.
In the off-grid (physical DPPA) case, hydropower is now eligible for DPPA, along with other renewable energy sources; rooftop solar power plants can now sell up to 20% of their output to EVN. In the on-grid (virtual DPPA) case, biomass (10MW and above) is now included in DPPA, alongside wind and solar.
In addition, renewable energy power plants and large end-users must agree on the ratio of electricity output purchased and sold, supporting the National Electricity System and Market Operator in managing the grid. This is a slightly positive development for renewable energy enterprises, reflecting the Government’s efforts to improve regulations and increase investment feasibility in the context of the risk of power shortage. Further guidance will be provided in the coming time, especially on service fees in the case of grid connection in the first half of 2025.
According to Vietcap Securities forecast, the new DPPA Decree clarifies implementation details and removes barriers such as minimum electricity consumption thresholds, bringing slight benefits to REE, PC1, HDG and TV2.
However, renewable energy businesses should also note Decree 57/2025/ND-CP on negative changes in the case of off-grid connection. Electricity prices must be negotiated by the parties but must not exceed the ceiling in the price range prescribed for the corresponding power sources. This can limit the price of power plants.
On March 5, investors, financial institutions, stakeholders and representatives of wind and solar power plants sent a petition letter regarding the status and handling method for 173 wind and solar power projects that had a commercial operation date (COD) before or during 2021 but did not have a Document of acceptance of acceptance results (acceptance of acceptance) at the time of COD.
According to investors, if the COD dates of 173 renewable energy projects are adjusted or revoked, the economic consequences will be extremely serious, because the COD adjustment will directly affect the FIT price. The reduction in the FIT price due to the withdrawal or adjustment of the COD date could lead to the elimination of almost the entire equity value of these energy projects.
Therefore, investors proposed 2 proposals: No retroactive COD date; reserve the FIT electricity purchase price agreed upon under PPA and request EVN to properly perform its contractual obligations.
According to pvn.vn