Ministry of Industry and Trade approves 2026 electricity generation price framework for gas-fired thermal power plants

On July 23, 2026, the Ministry of Industry and Trade promulgated Decision No. 1882/QĐ-BCT approving the electricity generation price framework applicable to combined-cycle gas turbine power plants fuelled by natural gas for 2026.

The Decision is based on the Electricity Law dated November 30, 2024; Government Decree No. 40/2025/NĐ-CP dated February 26, 2025, defining the functions, duties, powers and organizational structure of the Ministry of Industry and Trade (as amended and supplemented by Decree No. 109/2025/NĐ-CP and Decree No. 193/2025/NĐ-CP); and Circular No. 09/2025/TT-BCT dated February 1, 2025, issued by the Minister of Industry and Trade, prescribing the dossiers, procedures, methodologies for determining and approving electricity generation price frameworks and electricity import price frameworks. The Decision was issued following a proposal submitted by Vietnam Electricity (EVN) under Document No. 2594/EVN-KDMBĐ dated May 11, 2026, and the recommendation of the Director General of the Electricity Authority.

Nhon Trach 3 and Nhon Trach 4 Power Plant Complex.

Under Article 1 of the Decision, the 2026 electricity generation price framework applicable to combined-cycle gas turbine power plants using natural gas (as stipulated in Point a, Clause 2, Article 1 of Circular No. 09/2025/TT-BCT) ranges from VND 0 to VND 3,410.64 per kWh, exclusive of value-added tax (VAT). The approved ceiling price is VND 3,410.64 per kWh.

The Ministry also announced the key technical and financial parameters used to calculate the maximum price under the framework. Specifically, the net generating capacity of the reference power plant is 1,008,104 kW, while the net heat rate at an 85% load factor is 6,542.96 BTU/kWh. Regarding fuel assumptions, the price of the primary fuel (natural gas) is set at USD 11.98 per million BTU, and the transportation cost of the primary fuel to the power plant is calculated at USD 1.87 per million BTU. The exchange rate applied in the calculation is VND 26,378 per US dollar.

Regarding implementation, the Ministry of Industry and Trade assigned Vietnam Electricity and power generation companies to use the approved electricity generation price framework as the basis for negotiating and signing power purchase agreements (PPAs). The negotiation and contracting process must strictly comply with the regulations governing the methodology for determining electricity generation service prices issued by the Ministry.

Decision No. 1882/QĐ-BCT took effect on the date of its signing, July 23, 2026. The Chief of the Ministry Office, the Director General of the Electricity Authority, the Director General of the Legal Department, heads of relevant units under the Ministry of Industry and Trade, the President and Chief Executive Officer of Vietnam Electricity, and heads of relevant power generation companies are responsible for implementing the Decision.