Decision 1198/QD-BCT 2025 approve electricity generation price bracket for pumped-storage hydropower plants

DECISION

Approving the electricity generation price bracket for pumped-storage hydropower plants in 2025

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THE MINISTER OF INDUSTRY AND TRADE

Pursuant to the Electricity Law dated November 30, 2024;

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

Pursuant to Circular No. 09/2025/TT-BCT dated February 1, 2025, of the Minister of Industry and Trade, on the dossier, order, procedures, and methods for determining and approving the electricity generation price bracket; dossier, order, procedures for developing and approving the electricity import price bracket;

Considering the Vietnam Electricity’s proposal in Document No. 1771/EVN-TTD dated March 20, 2025, and Document No. 2516/EVN-TTD dated April 18, 2025;

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

DECIDES:

Article 1. Approving the electricity generation price bracket for pumped-storage hydropower plants in 2025

1. The maximum price level of the electricity generation price bracket for 2025 applicable to pumped-storage hydropower plants as prescribed at Point a, Clause 2, Article 1 of Circular No. 09/2025/TT-BCT is 3,457.02 VND/kWh (exclusive of value-added tax).

2. The parameters used for calculating the maximum price level of the electricity generation price bracket applicable to pumped-storage hydropower plants in 2025 are specified in the Appendix to this Decision.

Article 2. Implementation organization

Based on the electricity generation price bracket prescribed in Article 1 of this Decision, the Vietnam Electricity and electricity producers shall sign power purchase agreements on the basis of compliance with the regulations on methods for determining electricity generation service prices promulgated by the Minister of Industry and Trade.

Article 3. Effect

1. This Decision takes effect on the date of its signing.

2. Chief of the Ministry Office, Director of the Electricity Authority of Vietnam, Director of the Legal Department, heads of units affiliated to the Ministry, General Director of Vietnam Electricity, and heads of relevant electricity producers shall implement this Decision./.

Appendix

ELECTRICITY GENERATION PRICE BRACKET FOR PUMPED-STORAGE HYDROPOWER PLANTS IN 2025

(Attached to the Minister of Industry and Trade’s Decision No. 1198/QD-BCT dated April 26, 2025)

1. The maximum price level of the electricity generation price bracket for 2025 applicable to pumped-storage hydropower plants is 3,457.02 VND/kWh (exclusive of value-added tax).

2. Parameters used for calculating the maximum price level of the electricity generation price bracket applicable to pumped-storage hydropower plants in 2025:

- Design capacity: 1,188 MW;

- Economic lifetime: 40 years;

- Estimated investment rate*: 17,934,713 VND/kW;

- Rate of electricity self-consumed and transformer loss: 1%;

- Peak-load operation hours: 1,310 hours/year;

- Average annual energy output: 1,556,280,000 kWh;

- Ratio of pumped electricity to generated electricity: 1.44;

- Off-peak retail electricity price: 1,094 VND/kWh (pursuant to Decision No. 2699/QD-BCT dated October 11, 2024, of the Minister of Industry and Trade, on electricity prices).

* The estimated investment rate of pumped-storage hydropower plants shall be updated after the approval of the feasibility study report and the appraisal of the basic design.