On November 30, 2024, at the 8th session of the 15th National Assembly, the revised Electricity Law was officially passed and will take effect on February 1, 2025.
The Electricity Law consists of 9 Chapters and 81 Articles, with the following notable new provisions:
No. | Chapter | Key Highlights |
1 | Chapter I: General Provisions (Articles 1–9) | - Expanded application of the Electricity Law to include investment policy approval authority for power projects, special investment regulations for urgent electricity projects, investor selection for electricity business projects, and offshore wind power development (Article 3). - Added multiple new definitions in Article 4 (Interpretation of Terms) such as: hydropower project safety, electrical safety, avoided cost tariff, cross-subsidization in electricity pricing, voltage levels, auxiliary services, renewable energy, new energy, self-produced and self-consumed electricity, pricing definitions, and contract terms. - Incorporated policies from Resolution No. 55-NQ/TW in Article 5 on “State policies for electricity sector development.” - Added regulations on applying science, technology, and industrial manufacturing in the electricity sector. |
2 | Chapter II: Electricity Development Planning, Power Grid Development Plans, and Electricity Project Investment (Articles 10–19) | - Introduced new regulations on implementing electricity development plans, including provincial plans for power grid expansion. - Added provisions for investment policy approval of electricity projects, urgent electricity projects, public-private partnership (PPP) investment contracts for power plants under the Build-Operate-Transfer (BOT) model, investor selection for electricity business projects, and bidding procedures for electricity business investments. - Adjusted general provisions on electricity project investments and electricity development in rural, mountainous, border, and island areas, as well as economically disadvantaged regions. - Removed regulations on the formulation, appraisal, approval, publication, and adjustment of electricity development plans, along with costs associated with these processes. |
3 | Chapter III: Renewable Energy and New Energy Development (Articles 20–29) | - Section 1: Renewable Energy and New Energy (Articles 20–25) – a completely new section covering the development of renewable energy (hydrogen, ammonia), fundamental resource surveys, self-produced and self-consumed renewable energy, equipment refurbishment, and dismantling of renewable energy projects. - Section 2: Offshore Wind Power Development (Articles 26–29) – a new section outlining general provisions, project surveys, investment approval, and investor selection for offshore wind projects. |
4 | Chapter IV: Electricity Operation Licensing (Articles 30–37) | - Introduced new principles for electricity operation licensing in line with industry needs and specified conditions for license revocation. - Removed licensing requirements for consulting services and delegated the government to regulate detailed conditions, procedures, and revocation mechanisms for electricity operation licenses. |
5 | Chapter V: Competitive Electricity Market and Electricity Trading (Articles 38–52) | - Section 1: Competitive Electricity Market (Articles 38–43) – added provisions on suspending and resuming real-time electricity market operations at different competitive levels. - Section 2: Electricity Trading Contracts and Service Contracts (Articles 44–49) – introduced new contracts such as forward electricity contracts, electricity call/put options, and electricity futures contracts; included regulations on cross-border electricity grid connections. - Section 3: Electricity Pricing and Electricity Service Pricing (Articles 50–52) – revised electricity pricing principles for small renewable energy plants and hybrid renewable energy projects with energy storage; added pricing methods for privately invested transmission grids and introduced a two-part tariff system (capacity charge and energy charge). |
6 | Chapter VI: Electricity System Operation and Dispatch (Articles 53–57) | - Established transparency and fairness principles in power system dispatch operations. - Added provisions on demand-side management for efficient electricity use. - Authorized the government to regulate emergency scenarios threatening power supply security and empowered the Minister of Industry and Trade to mobilize power plants in such cases. |
7 | Chapter VII: Rights and Obligations of Electricity Entities and Electricity Consumers (Articles 58–66) | - Expanded the rights and obligations of licensed electricity entities and electricity market operators while eliminating the rights and obligations of electricity consulting firms. |
8 | Chapter VIII: Protection of Electricity Infrastructure and Safety in the Electricity Sector (Articles 67–78) | - Amended regulations granting the Minister of Industry and Trade authority over the safety of overhead power lines. - Strengthened responsibilities for investors and operators regarding electrical safety. - Updated safety regulations for power generation, transmission, distribution, and electricity usage in industrial, residential, and service sectors, including safety in rural, mountainous, border, and island areas. - Added general provisions on electrical safety, technical safety inspections for electrical equipment, and a dedicated section on hydropower project safety. |
9 | Chapter IX: Implementation Provisions (Articles 79–81) | - Amended provisions of related laws, including the Construction Law, the Law on Marine and Island Resources and Environment, and the Pricing Law. - Included transitional provisions to ensure legal consistency when the new Electricity Law takes effect and replaces the 2004 Electricity Law. |
Conclusion:
The revision of the Electricity Law contributes to:
Comprehensively institutionalizing the Party’s policies and the State’s strategies on electricity development.
Meeting the urgent demand for electricity growth by facilitating power generation and grid expansion to ensure national energy security.
Enhancing transparency in the electricity sector, progressing towards a fully competitive retail electricity market, and adjusting electricity pricing mechanisms based on market principles with state regulation.
Establishing a legal framework for developing energy sources such as renewable energy, new energy, gas-fired power, and nuclear power.
Addressing and resolving regulatory challenges in the electricity sector while avoiding the legalization of past violations.
Implementing reforms to enhance efficiency, clearly define responsibilities, and reduce administrative complexity in electricity sector management.
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