Vietnam’s New Electricity Law Promotes Renewable Energy Growth

Vietnam has passed a new Electricity Law, effective February 1, 2025, aimed at modernizing its energy sector and fostering renewable energy growth.

The law introduces reforms to support market liberalization, including multi-component pricing, new trading mechanisms like term contracts and futures, and transparent bidding guidelines for energy projects.

It emphasizes the promotion of renewable energy sources such as solar, wind, and nuclear power, with incentives for small hydropower and offshore wind projects.

The law also facilitates private investment in energy storage systems, nuclear energy, and liquefied natural gas. 

Aligned with Vietnam’s Power Development Plan 8, it sets a target for over 60% of installed capacity to come from renewables by 2050.