Vietnam has recently enacted a new Electricity Law [1], which will take effect on February 1, 2025. This law aims to address the challenges faced by Vietnam’s energy sector and create a robust legal framework to support the development of renewable energy. The previous law, which had been in effect for nearly 20 years, was outdated and unable to meet the current demands of the energy sector.
The new law introduces several key changes to promote clean energy development. It establishes a unified, competitive, and transparent energy market, which is expected to attract both domestic and foreign investors. The law also introduces market-based pricing for various energy sources, aiming to foster technological development and regulate electricity pricing.
One of the primary goals of the new law is to ensure national energy security by encouraging the development of renewable energy sources such as wind and solar power. The law includes provisions to streamline the bidding and auction processes for electricity projects, as well as clear guidelines on the responsibilities of investors. This is expected to accelerate the implementation of future energy projects and support Vietnam’s green transition towards net-zero emissions by 2050.
Director of the Clean Energy and Green Growth Research Centre Hà Đăng Sơn said that clarity in legal regulations regarding bidding and auctions, as well as the specific responsibilities of investors in electricity projects, was essential. He further called for clear accountability to address risks and overcome legal obstacles. The revision is in line with Vietnam’s green transition towards net-zero emissions by 2050.
The adoption of the new Electricity Law was a significant step for Vietnam, with 91.65% of the delegates in the National Assembly approving the law. The law is seen as a crucial component in achieving the country’s energy goals and ensuring a sustainable energy future.
Sources:
[1] Vietnam’s New Electricity Law: Legal Framework for Renewable Energy Development
