The Ministry of Industry and Trade (MOIT) introduced a new pricing framework for solar power projects integrated with battery energy storage systems (BESS) in Decision 988/QD-BCT issued in 4/2025. The highest ceiling price is for floating solar power projects in northern Vietnam, reaching 1,876 VND/kWh (approximately 0.075 USD/kWh).
This pricing policy for renewable energy coupled with storage is a significant step towards promoting clean energy and enhancing the stability of the national grid. It signals long-term support for modern renewable energy technologies.
Vietnam's electricity consumption in 2025 is projected to increase by 12-13% compared to the previous year. The robust recovery of industrial production, expansion of industrial zones, and export growth are putting increasing pressure on the power supply. Expanding renewable energy sources is crucial for ensuring national energy security.
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A wind power project in Ninh Thuan province. Photo: Quynh Tran |
A wind power project in Ninh Thuan province. Photo: Quynh Tran
To further mobilize capital beyond the centralized power system, the Vietnamese government is implementing the Direct Power Purchase Agreement (DPPA) mechanism.
The DPPA allows large electricity consumers to directly contract with renewable energy plants, reducing reliance on the central power dispatch system. Many multinational corporations are pursuing this mechanism to fulfill their commitments to reduce emissions in their global supply chains.
According to Power Development Plan VIII (Decision 500/QD-TTg), Vietnam aims to achieve approximately 12.8 GW of solar power, 21.9 GW of onshore wind power, and 6 GW of pilot offshore wind power by 2030. The total investment capital needed for the entire power sector during this period is estimated at 113-135 billion USD. Offshore wind power projects and large-scale energy storage systems are attractive to international investors in the renewable energy sector.
Despite the opportunities, the renewable energy market also faces risks. In 1/2025, Vietnam Electricity (EVN) announced the withholding of a portion of the feed-in tariff (FiT) for some solar and wind power projects due to violations of commercial operation date (COD) conditions. This led to numerous investors submitting petitions to authorities, raising concerns about the stability of payment mechanisms. International investors are closely monitoring policy adjustments to reassess the safety of project implementation.
Strict adherence to legal and technical conditions, as well as operational regulations, is crucial for ensuring long-term effectiveness. With the current growth rate of electricity consumption and policies prioritizing clean energy, Vietnam remains one of the most attractive renewable energy markets in Asia.
Hai Long
