The Ministry of Industry and Trade of Vietnam has issued a decision approving the electricity import price framework from Laos to Vietnam. The new framework will be implemented starting from December 31, 2025.

According to the new framework, the maximum purchase price for hydropower is set at 6.78 cents/kWh, and for wind power, the maximum purchase price is set at 6.4 cents/kWh. The power purchase price from Laos is lower than the current average retail price of 8.47 cents/kWh (excluding VAT).

Following the directive from the Ministry of Industry and Trade, the Vietnam Electricity (EVN) issued a decision on October 11, 2024, to adjust the average retail electricity price. From October 11, 2024, the average retail electricity price will be 2,103.1159 VND/kWh (excluding VAT), representing an increase of 4.8% compared to the current average retail price.

The electricity import price framework from Laos to Vietnam will apply to power plants in commercial operation for a period of five years, from December 31, 2025, to December 31, 2030.

Based on this price framework, EVN will negotiate electricity purchase prices with power generation units in accordance with market mechanisms and prices. At the same time, it will monitor price fluctuations and report to the Ministry of Industry and Trade as required.

According to EVN statistics, in September 2024, the total power generation and imports in Vietnam reached 24.56 billion kWh. The cumulative power generation in the first nine months of 2024 reached 232.6 billion kWh, representing a 10.9% increase compared to the same period in 2023. Imported electricity amounted to 4.02 billion kWh, accounting for 1.7%.

According to the "Implementation of the National Power Development Plan for 2021-2030, with a Vision to 2050" (Power Development Plan VIII), Vietnam plans to import around 5,000 MW of electricity from Laos, with an option to increase this to 8,000 MW when favorable conditions and reasonable prices are met.

In September, the Vietnamese government announced plans to introduce a new net metering scheme for rooftop solar installations. By the end of last year, Vietnam had installed over 17 GW of solar energy projects.

Source：TrendForce