2026 Geneneration Price Frameworks for Solar & Wind Power in Vietnam

On 5 November 2026, the Ministry of Industry and Trade issued two decisions approving the 2026 generation price frameworks for renewable energy. The new price frameworks are expected to improve investment efficiency and create momentum for enterprises in the sector.

Decision No. 2945/QĐ-BCT applies to wind power plants:

Decision No. 2946/QĐ-BCT applies to solar power plants:

The higher maximum price of the framework widens the room for price negotiation under power purchase agreements. Where a higher selling price is achieved, a project may improve its internal rate of return (IRR), making new investment decisions more favourable.

However, renewable energy investors should note the following three points:

The generation price framework is a ceiling, not the purchase price. Under the Law on Electricity, the framework is the range between the minimum and maximum average prices over the life of a power plant project and applies to power plants connected to the national power system; the two decisions above approve the maximum price of this framework.^[1]
The price under a power purchase agreement is negotiated between the seller and the buyer, but the base-year price must not exceed the generation price framework for that year.^[2] Accordingly, a higher framework does not automatically raise the selling price of any given project; the specific price is determined under the pricing methodology prescribed by the Ministry of Industry and Trade and through negotiation with the buyer.
Direct power purchase agreements (DPPAs) follow a separate pricing mechanism but do not fall entirely outside the price framework. Via a private connection grid, the electricity price is negotiated and agreed by the two parties. Via the national grid, the generator offers its entire capacity on the spot electricity market, while the price under the electricity forward contract with the customer is agreed by the two parties.^[3] The framework still caps the price of surplus electricity sold to Power Corporations and Power Companies, and the purchase price where the electricity forward contract is suspended or expires or where participation in the mechanism is terminated.^[4]

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^[1] Clause 41, Article 4 of the Law on Electricity No. 61/2024/QH15 dated 30 November 2024; Point a, Clause 2, Article 1 of Circular No. 09/2025/TT-BCT dated 1 February 2025 of the Minister of Industry and Trade (as amended and supplemented by Circular No. 25/2025/TT-BCT and Circular No. 54/2025/TT-BCT); Clause 1, Article 1 of Decision No. 2945/QĐ-BCT and Clause 1, Article 1 of Decision No. 2946/QĐ-BCT dated 5 November 2026 of the Minister of Industry and Trade.

^[2] Point e, Clause 12, Article 5 and Points b and g, Clause 1, Article 51 of the Law on Electricity No. 61/2024/QH15; Point a, Clause 4, Article 3 of Circular No. 12/2025/TT-BCT dated 1 February 2025 of the Minister of Industry and Trade on the methodology for determining generation service prices, principles for calculating electricity prices for power projects, and principal contents of power purchase agreements (as amended and supplemented by Circular No. 54/2025/TT-BCT).

^[3] Article 47 of the Law on Electricity No. 61/2024/QH15; Point b, Clause 1, Article 6, Clause 1, Article 10 and Clause 2, Article 17 of Decree No. 57/2025/NĐ-CP dated 3 March 2025 of the Government on the mechanism for direct power purchase between renewable energy generators and large electricity consumers, as amended and supplemented by Decree No. 243/2026/NĐ-CP dated 26 June 2026 (consolidated in Consolidated Document No. 53/VBHN-BCT dated 30 June 2026 of the Ministry of Industry and Trade).

^[4] Clauses 2 and 3, Article 6 and Clauses 1 and 3, Article 27 of Decree No. 57/2025/NĐ-CP (as amended and supplemented).