Decree No. 61/2025/ND-CP: Key regulations on electricity license

On March 4, 2025, the Government issued Decree No. 61/2025/ND-CP, which provides detailed provisions under the Law on Electricity regarding electricity licenses. This decree becomes effective immediately upon signing and is expected to facilitate the operations of businesses in the electricity sector while enhancing transparency and the efficiency of energy sector management.

Scope and applicability

Decree No. 61/2025/ND-CP applies to state agencies responsible for issuing, amending, supplementing, reissuing, renewing, and revoking electricity licenses; to organizations involved in electricity operations within Vietnam; and to any other agencies, organizations, or individuals related to electricity activities.

Notable provisions in electricity license

Exemption conditions for electricity license

According to Article 21, the regulation stipulates the capacity threshold exempt from electricity licenses.

1. For self-consumption power generation facilities that do not sell electricity to other organizations or individuals:

a) There is no capacity limit for facilities not connected to the national grid;

b) For facilities connected to the national grid, installations below 30 MW are exempt.

2. Power generation facilities that sell electricity to other organizations or individuals are exempt if their installed capacity is below 1 MW.

3. For rural, mountainous, border, and island regions, businesses purchasing electricity with an installed capacity below 100 kVA from the distribution grid to sell directly to local consumers are exempt from retail electricity license requirements.

Enhanced management and oversight of electricity operations

The decree specifies responsibilities for monitoring and sanctions for non-compliance in electricity operations.

Enterprises are required to submit periodic reports on electricity production, consumption, operational status, and environmental compliance.

Encouraging renewable energy development

The decree further facilitates market access for renewable energy projects.

Incentive mechanisms for businesses investing in solar and wind power projects are maintained and expanded.

Impact on the energy sector

This decree is expected to create a more favorable business environment for electricity companies, particularly those in the renewable energy sector. By simplifying licensing procedures, it enables companies to save time and reduce costs, thereby promoting investments and the development of clean electricity projects.

For Vu Phong Energy Group, Decree No. 61/2025/ND-CP presents significant opportunities to accelerate solar power projects and expand cooperative models in renewable energy. Clear provisions on grid connection and operational reporting provide better guidance for project implementation.

For further details on Decree No. 61/2025/ND-CP, please click here.