Decree No. 57/2025/ND-CP on direct electricity trading mechanism

On March 3, 2025, the Government issued Decree No. 57/2025/ND-CP, regulating the direct electricity trading mechanism between renewable energy generators and large electricity consumers. This is a significant step forward in promoting renewable energy adoption and enabling businesses to access clean electricity directly.

Two methods of direct electricity trading

According to the Decree, direct electricity trading refers to transactions conducted between a renewable energy generator and a large electricity consumer through the following two methods:

1/ Direct electricity trading via a private grid connection:

Renewable energy generators and large-scale electricity consumers shall engage in direct electricity trading via a private grid connection under the following principles:

The electricity sales and purchase agreement between the generator and the consumer shall be mutually agreed upon in accordance with Article 44 of the Law on Electricity and other relevant legal provisions. Key elements include parties’ information, usage purpose, service standards and quality, rights and obligations, electricity pricing, payment terms and methods, termination conditions, liabilities for breach, contract duration, responsibilities for investment, construction, and management of the private grid connection, along with any other mutually agreed terms.

The electricity price shall be negotiated by the parties and must not exceed the maximum price set within the applicable electricity pricing framework for the respective energy source.

2/ Direct electricity trading via the national grid:

This involves the sale and delivery of electricity between renewable energy generators and large-scale electricity consumers (or retail electricity providers authorized within specific clusters), including:

a) The renewable energy generator selling all produced electricity in the real-time market of the competitive wholesale electricity market;

b) The large-scale consumer (or authorized retail electricity provider) entering into a long-term electricity contract with the generator;

c) The large-scale consumer (or authorized retail electricity provider) entering into an electricity sales agreement with Vietnam Electricity to purchase all the required electricity supply.

Requirements for participating parties

For large-scale electricity consumers with a usage history of 12 months or more: The average total electricity consumption over the most recent 12 months (determined based on the total electricity purchased from a designated Vietnam Electricity or an authorized, decentralized electricity company) shall not be less than the consumption level specified for large-scale consumers under the competitive wholesale electricity market operating regulations issued by the Ministry of Industry and Trade.

For large-scale electricity consumers with less than 12 months of usage: The registered electricity consumption, based on the estimated electricity purchase from a designated Vietnam Electricity (or authorized decentralized electricity company), must not be lower than the consumption level specified for large-scale consumers under the competitive wholesale electricity market operating regulations issued by the Ministry of Industry and Trade.

Decree No. 57/2025/ND-CP represents a strategic step toward promoting the use of renewable energy in Vietnam. Facilitating direct access to clean electricity not only meets the growing electricity demand but also contributes to environmental protection and the development of a green, sustainable economy.

For more details about Decree No. 57/2025/ND-CP, please click here.