Solar power prices can be calculated by province and city

The Ministry of Industry and Trade is collecting comments on the Draft to amend Circular 09/2025 on the method of determining and approving the price framework for electricity generation and import of electricity, currently stating two options for solar energy. Option 1 determines prices based on socio-economic zoning in the National Master Plan for each period. Option two applies to each province and city.

For onshore and nearshore wind power, the Ministry of Industry and Trade only proposes to determine according to socio-economic zoning in the National Master Plan for each period.

According to the drafting agency, there are opinions that the way to calculate solar power and wind power price brackets according to the three regions (North – Central – South) in recent times has not been appropriate, especially after merging provinces and adjusting administrative boundaries.

Solar power and wind power depend largely on natural conditions such as radiation and wind speed. These factors can vary significantly between localities, affecting output and project investment efficiency. Therefore, according to the Electricity Department, determining a more specific price range by area will accurately reflect investment costs and facilitate attracting investors.

Currently, the price framework for solar and wind power generation is built according to three regions: North, Central, and South, with different maximum levels according to type. In 2025, ground-mounted solar power has a ceiling price of 1,383 VND per kWh in the North, 1,107 VND in the Central region and 1,012 VND in the South. Floating solar power costs VND 1,686, VND 1,336 and VND 1,228 per kWh, respectively. Projects with battery storage are subject to a higher ceiling, about 1,150-1,877 VND per kWh depending on type and area.

For onshore wind power, the ceiling price is about 1,959 VND per kWh in the North, 1,807 VND in the Central region and 1,840 VND in the South. Nearshore wind power has a maximum cost of about 1,987 VND per kWh in all three regions.

The draft also provides two pricing options for waste power plants. In option 1, waste brought into the plant is calculated at a fuel price of 0 VND, the local money paid for waste collection, transportation, and treatment is not included in the electricity price. The factory will negotiate electricity prices based on total investment and technical specifications.

In this way, the factory has two separate revenue sources from electricity sales and waste treatment paid for by the locality. The price for waste treatment is determined separately by the Provincial People’s Committee, with the principle of not duplicating costs already included in the electricity price.

In option 2, waste treatment fees are calculated when determining electricity prices. Specifically, the amount of money the locality pays to the factory to treat garbage will be deducted when calculating fuel prices, thereby avoiding a cost that is compensated twice from garbage treatment fees and electricity sales.

In addition, the Ministry of Industry and Trade also proposed to clarify how to classify solar power on irrigation canals. According to the draft, photovoltaic panels installed on irrigation canals will not be classified as floating solar power because the structure of this type is simple and similar to that on the ground.

Another change is that the unit that calculates and submits the annual electricity generation price frame is proposed to be transferred from Vietnam Electricity Group (EVN) to the unit that operates the electricity system and electricity market. According to the Electricity Department, transferring the task to a neutral unit aims to increase objectivity, suit system needs and limit conflicts of interest between electricity buyers and sellers.