DECREE 58/2025/ND-CP NEW OPPORTUNITIES FOR RENEWABLE ENERGY IN VIETNAM
Decree 58/2025/ND-CP has been issued by the Government to provide detailed guidance on a number of articles of the Electricity Law on the development of renewable energy (such as solar power, wind power) and new energy (such as electricity from green hydrogen, green ammonia). This Decree provides many preferential policies to promote the development of the clean energy industry, encourage investment and ensure national energy security.
Outstanding preferential policies in Decree 58/2025/ND-CP
Prioritizing the mobilization of electricity from storage systems: Renewable energy projects with installed battery storage systems and connected to the national grid will be prioritized for mobilization during peak hours. This helps increase the efficiency of renewable energy and reduce pressure on the grid during high demand hours.
Exemption and Reduction of Land and Sea Area Usage Fees: Pioneering new energy power projects utilizing 100% green hydrogen/ammonia and connected to the national grid will receive incentives, including exemption/reduction of land and sea area usage fees during the first 3 years of construction. Subsequent incentives will comply with current legal regulations upon expiration of the initial incentive period.
Contractual power output guarantee: The Decree stipulates that the minimum contractual power output must be 70% during the loan repayment period (maximum 12 years), unless otherwise agreed between the investor and the power buyer. This policy helps investors have revenue assurance, facilitates capital recovery and maintains long-term operations.
Encourage research and technology development: The State will support research and technology development programs in the field of solar and wind power, especially the production of important equipment such as: Solar panels; Inverters; Electric cables. This policy aims to improve domestic production capacity, reduce dependence on imported equipment sources, and promote technological innovation in the field of clean energy, as stipulated in Article 8 of the Electricity Law.
New energy power policy: New energy power projects, including production from green hydrogen, green ammonia or a mixture of both, will enjoy incentives if they meet the following conditions: Produce 100% from new energy sources; Supply electricity to the national power system; Be the first project of each type. These incentives help attract investment in the new energy power sector, contribute to diversifying power supply and promoting the sustainable energy transition.
Regulations on developing self-produced and self-consumed electricity:
Organizations and individuals who own rooftop solar power sources are allowed to sell excess electricity.
Other self-produced and self-consumed power sources are allowed to sell surplus electricity but not exceeding 10% of total actual power output.
The cost of purchasing surplus electricity from renewable energy and new energy will be included in the wholesale and retail electricity price plan of Vietnam Electricity.
In addition, the decree also provides details on installed capacity, procedures for developing self-produced and self-consumed power sources, documents, contracts and related forms, helping organizations and individuals to easily implement.
Transitional regulations for rooftop solar
Systems installed before January 1, 2021 that have sold electricity will not be allowed to expand their capacity without additional agreements
Systems installed from January 1, 2021 to the effective date of the decree but have not completed all procedures according to Decree 135/2024/ND-CP must comply with the new regulations.
Registered but incomplete applications can still be processed according to current regulations.
Decree 58/2025/ND-CP provides many attractive incentive policies to promote the development of renewable energy and new energy in Vietnam. Incentives on exemption and reduction of land and sea use costs, ensuring contracted electricity output, supporting technology research and development, and encouraging self-produced and self-consumed electricity sources will contribute to attracting investment, ensuring energy security and moving towards a green and sustainable economy.
