Vietnam’s Energy Investment Landscape: Updates to the PDP8 Implementation Plan & Investor Selection Criteria

27/03/2025 17:00

1. MOIT Supplemented 142 Solar Power Projects into the PDP8 Implementation Plan

On 5 March 2025, the Ministry of Industry and Trade (MOIT) issued Decision No. 618/QD-BCT, updating the National Power Development Master Plan Implementation Plan (PDP8 Implementation Plan) by incorporating 142 solar power projects that achieved commercial operation by 13 January 2025 into the PDP8.[1]

This update follows Resolution No. 233/NQ-CP, dated 10 December 2024, issued by the Government to address challenges faced by renewable energy projects, as identified in the Government Inspectorate’s 2023 report.[2] The report questioned the inclusion of 154 solar power projects—totalling 13,837 MW—into the power development plan without a clear legal basis, noting that 123 of these significantly disrupted the national power system, distorted the power mix, and led to inefficient resource allocation. The 142 projects now approved under Decision No. 618/QD-BCT represent a subset of these, reintegrated into the PDP8 Implementation Plan to prevent resource wastage and restore investor confidence.

The updated list includes several large-scale solar farms with a total capacity of approximately 9,500 MW. [3] The PDP8 Implementation Plan specifies project names, capacities, and provincial locations, with exact sites to be determined during investment approval or pre-feasibility studies and construction locations finalised in feasibility study reports, per investment regulations.

 

2. Draft Revisions revising Bidding Procedures and Criteria for Investor Selection for Power Projects

On 14 February 2025, MOIT released a draft circular amending Circular 27[4] (Draft Revisions) for public consultation. Below are the key updates in the Draft Revisions.

2.1 Alignment with recent legal changes

Issued on 21 November 2024, Circular 27 became outdated following the National Assembly’s adoption of the Electricity Law 2024 on 30 November 2024. [5]  The Draft Revisions align references and guidance with new legal provisions, particularly regarding bidding evaluation criteria for investment efficiency in industries, fields, and localities; types of power projects eligible for bidding; and power purchase agreement (PPA) templates tailored to different project types.

2.2 Evaluation criterion for investment efficiency of the power sector

Under the current Article 6 of Circular 27, the criterion on investment efficiency of the sector development (Sector Efficiency Criterion) was primarily evaluated based on the electricity price, constrained by MOIT’s price bracket.[6] The Sector Efficiency Criterion for three distinct project types is now separated by the amended Article 6, which makes a distinction between the following.

  1. Projects with MOIT-Set Price Brackets: The electricity price of the projects is used to evaluate the Sector Efficiency Criterion. This evaluation method is comparable to the current Circular 27 regulation.
  2. Projects Without Price Brackets: The Sector Efficiency Criterion is evaluated based on their minimum annual financial contribution to the State budget, as proposed in the tender dossier. This contribution must not be lower than the minimum value set in the tender documents. However, it is currently unknown which index will be used to determine the minimal yearly financial contribution and how it will be legally established. 
  3. Projects Under the DPPA Mechanism: For projects with or without price brackets using the Direct Power Purchase Agreement (DPPA) mechanism, the maximum DPPA term with the off-taker is an additional criterion, accounting for 20% of the investment efficiency score. Post-DPPA, projects must join the competitive electricity market. MOIT is expected to issue further guidance.

2.3 Project qualifications and PPAs applicable

A list of projects covered by Article 17.1 of Decree 56[7] is now referenced in the Draft Revisions. In the event that two or more investors wish to develop a particular project, bidding will be organised to select investors. The projects consist of:

  1. Thermal power projects, including coal-fired power and gas-to-power projects; and
  2. Renewable energy projects including solar, wind, hydro-power, biomass-to-power projects.

Draft PPAs attached to bids will use templates tailored to power sources:

  1. Gas-to-power and most renewable energy projects (excluding those below) follow Appendix III of Circular 12.[8]
  2. Small renewable energy projects (hydropower ≤ 30 MW) use Appendix IV of Circular 10.[9]
  3. Biomass power projects adhere to Appendix I of Circular 44, as amended.[10]

2.4 Effective time and transitional provisions

The Draft Revisions are expected to take effect in 2025, contributing to a complete legal framework for power projects development in Vietnam, with specific transition regulations as follows:

  1. For projects where tender invitation dossiers have not been issued before the Draft Revisions take effect, the investor selection bid must comply with the new provisions.
  2. For projects where tender invitation dossiers were issued under Circular 27 but investor selection has not been finalised as of the effective date of the Draft Revisions, two scenarios apply: 
  1. If bid submissions have been received, evaluation continues based on the previously issued tender documents; and
  2. If bid submissions have not been received, bid closing time may be extended, and documents may be amended to comply with the Draft Revisions.

 

3. Legal Implications

The updates to the PDP8 Implementation Plan and bidding process have sparked investor interest. Reintegrating 142 solar projects fulfils the Government’s commitment under Resolution No. 233/NQ-CP to resolve past renewable energy challenges and bolster investment certainty. Meanwhile, the Draft Revisions’ revised criteria may intensify competition for project approvals, requiring investors to demonstrate financial viability, sustainability, and optimal project models. As the Draft Revisions remain under review and subject to change, continued monitoring is advised.

 

Please look forward to our upcoming updates in relation to these developments, and feel free to reach out to our team should you have any questions. 


Click here to download: Updates to the PDP8 Implementation Plan and Investor Selection Criteria  - Legal Update (EN) - March 2025

 

[1] PDP8 means the National Power Development Master Plan under Decision No. 500/QD-TTg dated 15 May 2023.

[2] Inspection conclusion No. 1027/KL-TTCP dated 28 April 2023 of the Government Inspectorate on compliance with policies and regulations in management, implementations of planning and investment in construction of power projects according to the PDP7 and PDP7 revised.

[3] The capacity of various projects is differently presented by various numbers in MW or MWp. As a result, we are able to record the total capacity of the 142 power projects as an approximate number.

[4] Circular No. 27/2024/TT-BCT dated 21 November 2024 of the MOIT on the criteria for evaluating bid dossiers and the bidding document templates for selecting investors to implement energy infrastructure investment projects (Circular 27).

[5] Please find our legal update on the new Electricity Law 2024 here.

[6] Article 49.2 of Decree 115/2024/ND-CP dated 16 September 2024 regarding detailed regulations on a number of articles and measures for implementing the Bidding Law 2023 on the selection of investors to implement investment projects using land (Decree 115).

[7] Decree No. 56/2025/ND-CP, dated 3 March 2025, elaborating the Electricity Law pertaining to electricity development, electrical supply grid development plan, electricity plan investment and development, bidding for investor selection of electricity business investment project (Decree 56).

[8] Circular No. 12/2025/TT-BCT dated 1 February 2025 by the MOIT on the method for determination of electricity generation services price, electricity prices for power projects, and main contents of PPA (Circular 12).

[9] Circular No. 10/2025/TT-BCT dated 1 February 2025 by the MOIT on methods for determination and principles of application of avoidable cost tariffs for small renewable energy power plants and main contents of the PPA (Circular 10).

[10] Circular No. 16/2020/TT-BCT dated 7 July 2020 by the MOIT amending Circular 44/2015/TT-BCT dated 9 December 2019 providing for development of avoidable cost tariff and sample of electricity sale contract applicable to biomass power projects (Circular 44).

 

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