Decree 58/2025/ND-CP: Development of renewable energy, new powe

Decree 58/2025/ND-CP: Development of renewable energy, new powe

(Chinhphu.vn) - The Government issued Decree No. 58/2025/ND-CP dated March 3, 2025 detailing a number of articles of the Electricity Law on the development of renewable electricity and new electricity.
 
Incentive mechanism to support the development of electricity storage systems for power projects from renewable energy sources
The Decree stipulates that power projects from renewable energy sources that have installed electricity storage systems and are connected to the national electricity system are given priority for mobilization during peak hours of the electricity system according to regulations, except for self-produced and self-consumed power sources.
 
Incentive policies to support research and development of appropriate technology in the field of wind power and solar power
The Decree stipulates that research and technology development in the field of wind power and solar power in Vietnam is encouraged and supported for development according to the provisions of Article 8 of the Electricity Law and relevant legal regulations.
The State prioritizes the implementation of research, development, and application of science and technology programs, the production of solar panels, wind turbines, and power conversion equipment.
Other priority and support policies according to current law provisions.
 
Conditions for applying preferential policies and supporting new energy power development
According to regulations, new energy power projects are entitled to incentive and support policies specified in Clause 2, Article 23 of the Electricity Law when meeting the following conditions:
- New energy power projects produced from 100% green hydrogen or 100% green ammonia or 100% mixture of green hydrogen and green ammonia;
- Project to supply electricity to the national electricity system;
- The first project for each type of new energy power
 
The above projects enjoy the following preferential mechanisms:
1- Exemption from sea area use fees during the basic construction period but not exceeding 3 years from the date of construction commencement. 
50% reduction in fees for using the marine area within 09 years after the exemption period of the basic construction period;
2- Exemption from land use fees and land rent during the basic construction period but not exceeding 03 years from the date of construction commencement. 
After the exemption period of the basic construction period, the exemption or reduction of land use fees and land rents will be implemented in accordance with the law on investment and land.
3- The minimum long-term contract electricity output is 70% within the loan principal repayment period but not exceeding 12 years, unless otherwise agreed between the investor and the electricity buyer. 
This mechanism will not be applied in cases where the project cannot generate the minimum committed output due to reasons from the project side or due to the load demand or technical conditions of the power system not being able to consume all the output;
4- After the time limit specified in Points 1 and 3 above, the application of preferential mechanisms shall comply with the law at the time of termination.
Decree No. 58/2025/ND-CP takes effect from March 3, 2025.
 
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