Circular 20/2026/TT-BCT amend Circular 10/2025/TT-BCT avoidable cost tariffs for small renewable energy power plants; main contents of the power purchase agreement

CIRCULAR

Amending and supplementing a number of articles of Circular No. 10/2025/TT-BCT dated February 01, 2025, on method of determining, and the principles of applying, avoidable cost tariffs for small renewable energy power plants; main contents of the power purchase agreement

Pursuant to the Electricity Law No. 61/2024/QH15, amended and supplemented under Law No. 94/2025/QH15;

Pursuant to the Government's Decree No. 40/2025/ND-CP, dated February 26, 2025, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

At the proposal of the Director of the Electricity Authority of Vietnam;

The Minister of Industry and Trade hereby promulgates the Circular amending and supplementing a number of articles of the Minister of Industry and Trade's Circular No. 10/2025/TT-BCT dated February 01, 2025, on method of determining, and the principles of applying, avoidable cost tariffs for small renewable energy power plants; main contents of the power purchase agreement.

Article 1. Amending and supplementing a number of articles of the Minister of Industry and Trade's Circular No. 10/2025/TT-BCT dated February 01, 2025, on method of determining, and the principles of applying, avoidable cost tariffs for small renewable energy power plants; main contents of the power purchase agreement

1. To amend and supplement a number of clauses of Article 2 as follows:

a) To amend and supplement Clauses 7, 8 and 10 as follows:

“7. Rainy season:

a) The Northern region shall be calculated from July 01 to the end of October 31;

b) The Central region shall be calculated from August 15 to the end of December 15;

c) The Southern region shall be calculated from August 01 to the end of December 01.

8. Dry season:

a) The Northern region shall be calculated from November 01 to the end of June 30 of the following year;

b) The Central region shall be calculated from December 16 to the end of August 14 of the following year;

c) The Southern region shall be calculated from December 02 to the end of July 31 of the following year.

10. Small renewable energy power plant means a renewable energy power plant with a capacity scale as specified in a Decision promulgated by the Ministry of Industry and Trade, in conformity with the socio-economic conditions of the country in each period.”.

b) To add Clause 11 after Clause 10 as follows:

“11. Northern region, Central region and Southern region specified in this Circular shall be determined according to the boundaries of the electricity system under the control of the Regional Load Dispatch Level as prescribed in the Regulation on dispatch, operation, manipulation, incident handling, black start and restoration of the national electricity system promulgated by the Minister of Industry and Trade.”.

2. To amend and supplement Point b Clause 4 Article 4 as follows:

“b) To study, propose and submit to the Minister of Industry and Trade for consideration and decision on avoidable cost tariffs applicable to each type of small renewable energy power plant at a reasonable level, in conformity with the national socio-economic conditions in each period;”.

3. To amend and supplement Article 3 of the power purchase agreement in Appendix IV to Circular No. 10/2025/TT-BCT as follows:

“Article 3. Term

This Agreement shall take effect from ... month ... year ... and shall terminate after 20 (twenty) years from the commercial operation date. Upon termination of the Agreement, the Parties shall remain obligated to carry out final invoicing, invoice adjustments, payments, and completion of all rights and obligations under this Agreement.”.

4. To replace the phrase “the state management agency in charge of electricity at the Ministry of Industry and Trade” with “the Electricity Authority of Vietnam under the Ministry of Industry and Trade” in Clause 2, Clause 3, Clause 4, Clause 5 of Article 4; Article 7; Clause 4 of Article 9; Clause 2 of Article 10 of Circular No. 10/2025/TT-BCT and Article 1 of the power purchase agreement in Appendix IV to Circular No. 10/2025/TT-BCT.

5. To promulgate together with this Circular an Appendix replacing Appendix II to Circular No. 10/2025/TT-BCT providing the method for calculation of avoidable cost tariffs.

Article 2. Transitional provisions

1. For small hydroelectric power plants and cascade hydroelectric power clusters where hydroelectric power plants within the cluster have been put into operation and have executed power purchase agreements under avoidable cost tariffs promulgated and applied before the time of merger or adjustment of provincial-level administrative boundaries, the avoidable cost tariffs shall continue to be applied according to the regions or administrative areas as determined in the power purchase agreements before the time of merger of provinces or cities.

2. In case where new regulations on the capacity scale of small hydroelectric power plants promulgated by the Ministry of Industry and Trade differ from the Ministry of Industry's Decision No. 2394/QD-BCN dated September 01, 2006, resulting in such plants falling outside the scope and subjects of application of this Circular; small hydroelectric power plants/projects as defined under Decision No. 2394/QD-BCN which have investment policy approved by the competent authorities, and are included in the national power development planning list or in the list under the power supply plan of the provincial planning approved by competent authorities, and are put into commercial operation no later than 5 years from the effective date of the new regulation on the capacity scale of small hydroelectric power plants promulgated by the Ministry of Industry and Trade (replacing Decision No. 2394/QD-BCN), such new small hydroelectric power plants/projects may choose to implement power purchase agreements under the avoidable cost tariffs provided in this Circular or to participate in the electricity market in accordance with relevant regulations. Upon choosing to participate in the electricity market, the electricity seller shall not be permitted to reselect the application of avoidable cost tariffs.

3. For small renewable energy power plants, during the implementation of power purchase agreements under avoidable cost tariffs, where the electricity seller is required to suspend/cease electricity generation due to force majeure events (storms, floods, earthquakes, landslides) directly affecting the operation of the small renewable energy power plant, the electricity seller and the electricity buyer may agree to extend the term of the power purchase agreement under avoidable cost tariffs to ensure that the implementation duration of the power purchase agreement corresponds to the period of suspension/cessation of operation for incident remediation, and that the total electricity generation period does not exceed 20 years from the commercial operation date of the power plant or the commercial operation date of each generating unit for power plants with multiple generating units. The electricity price during the extension period of the power purchase agreement shall correspond to the avoidable cost tariff at each time of suspension/cessation of electricity generation. The electricity seller shall be responsible before the law for the accuracy and transparency in the certification of events of suspension/cessation of electricity generation due to force majeure events (storms, floods, earthquakes, landslides).

4. For small hydroelectric power plants and cascade hydroelectric power clusters where hydroelectric power plants within the cluster have been put into operation and have executed power purchase agreements under avoidable cost tariffs before the effective date of this Circular, the provisions on rainy season and dry season as stipulated in the executed power purchase agreements shall continue to apply.

Article 3. Effect

1. This Circular takes effect from June 02, 2026.

2. Any difficulties arising in the courses of implementation should be reported to the Ministry of Industry and Trade for consideration, supplements and amendment accordingly./.