Law No. 61/2024/QH15 on Electricity.
Country
Type of law
Legislation
Abstract
This Law prescribes electricity development planning and investment in construction of electricity projects; development of renewable energy power and new energy power; electricity licenses; competitive electricity market, electricity trading activities; dispatch and operation of national power system; protection of electricity works and safety in the field of electricity; responsibilities, rights and obligations of agencies, organizations and individuals in electricity activities and electricity use; state management of electricity.
The Law aims to ensure stable, safe, and efficient electricity supply for socio-economic development and national security. It emphasizes state policies on electricity development, including promoting renewable energy, ensuring national energy security, and supporting rural and disadvantaged areas.
National and provincial development plans must balance supply-demand, optimize resources, and align with environmental goals. The Law prioritizes renewable energy development to transition toward sustainable power systems. It emphasizes solar, wind (particularly offshore), hydropower, biomass, and emerging technologies like green hydrogen and ammonia. Incentives such as tax reductions, waived land/sea fees, and long-term contracts aim to attract investments, while energy storage integration is encouraged to stabilize grid reliability. Offshore wind projects are prioritized for domestic energy supply and export. The Law also streamlines electricity licensing, requiring permits for generation, transmission, distribution, wholesale, and retail activities, though exemptions apply to small-scale systems (e.g., rooftop solar below state-defined capacity) and self-consumption setups. Licenses are issued by the Ministry of Industry and Trade (MOIT) or provincial authorities, depending on project scope and voltage levels, ensuring regulatory oversight while supporting decentralized energy initiatives.
The Law establishes a competitive electricity market to enhance efficiency and transparency. It introduces phased market levels—generation, wholesale, and retail—allowing power plants and traders to compete via contracts (spot, forward, futures). For rural and disadvantaged areas, the law mandates targeted support, including subsidies for low-income households, state-funded grid expansions, and incentives for renewable projects in remote regions. Households are encouraged to adopt rooftop solar with options to sell surplus energy to the grid, bridging energy access gaps and fostering local resilience.
The Law aims to ensure stable, safe, and efficient electricity supply for socio-economic development and national security. It emphasizes state policies on electricity development, including promoting renewable energy, ensuring national energy security, and supporting rural and disadvantaged areas.
National and provincial development plans must balance supply-demand, optimize resources, and align with environmental goals. The Law prioritizes renewable energy development to transition toward sustainable power systems. It emphasizes solar, wind (particularly offshore), hydropower, biomass, and emerging technologies like green hydrogen and ammonia. Incentives such as tax reductions, waived land/sea fees, and long-term contracts aim to attract investments, while energy storage integration is encouraged to stabilize grid reliability. Offshore wind projects are prioritized for domestic energy supply and export. The Law also streamlines electricity licensing, requiring permits for generation, transmission, distribution, wholesale, and retail activities, though exemptions apply to small-scale systems (e.g., rooftop solar below state-defined capacity) and self-consumption setups. Licenses are issued by the Ministry of Industry and Trade (MOIT) or provincial authorities, depending on project scope and voltage levels, ensuring regulatory oversight while supporting decentralized energy initiatives.
The Law establishes a competitive electricity market to enhance efficiency and transparency. It introduces phased market levels—generation, wholesale, and retail—allowing power plants and traders to compete via contracts (spot, forward, futures). For rural and disadvantaged areas, the law mandates targeted support, including subsidies for low-income households, state-funded grid expansions, and incentives for renewable projects in remote regions. Households are encouraged to adopt rooftop solar with options to sell surplus energy to the grid, bridging energy access gaps and fostering local resilience.
Attached files
Web site
Date of text
Entry into force notes
The Law enters into force on 1 February 2025.
Repealed
No
Source language
English
Legislation Amendment
No
Repeals