The Government has issued Decree No 58/2025/ND-CP, detailing the implementation of some provisions of the Electricity Law regarding the development of renewable energy and new energy, effective on March 3, 2025.

The decree stipulates that renewable energy projects equipped with electricity storage systems and connected to the national grid will be prioritized for use during peak hours of the electricity system as per current regulations, except for self-produced and self-consumed electricity.

Additionally, research and technological development in the fields of wind and solar power in Vietnam are encouraged and supported in accordance with Article 8 of the Electricity Law and relevant legal provisions.

Accordingly, the State prioritizes programs for research, development, and application of science and technology, as well as the production of solar panels, wind turbines, and power conversion equipment.

Under the decree, new energy projects are eligible for incentive and support as stipulated in Article 23 of the Electricity Law, provided they meet the following conditions: the projects produce electricity 100 percent from green hydrogen, green ammonia, or a mixture of green hydrogen and green ammonia; projects supply electricity to the national grid; and the first projects of their kind for each new energy category.

These projects are entitled to the following incentive mechanisms:

First, exemption from the maritime area use fees during the capital construction period, but no longer than three years from the construction start date, and a 50 percent reduction in the maritime area use fees for the subsequent nine years following the exempted construction period.

Second, exemption from land use and land rental fees during the capital construction period, but not exceeding three years from the construction start date. After the exempted period, the exemptions or reductions in land use and rental fees will follow the regulations on investment and land.

Third, the minimum long-term contracted electricity output is 70 percent during the principal loan repayment period, but not exceeding 12 years, unless otherwise agreed upon by the investor and the electricity purchaser.

This mechanism does not apply if projects fail to generate the committed minimum output due to their problems, load demand, or bad technical conditions of the electricity system that cannot use up the output.

Fourth, after specified periods, the application of incentive mechanisms will adhere to the legal provisions in effect at the time of contract termination.

In related news, Thu Dau Mot Water JSC (HOSE: TDM) has sent a document to the State Securities Commission (SSC) and HOSE with content related to rooftop solar power purchasing contracts.

Hanh Nguyen