•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Circular 20/2026/TT-BCT, issued by the Ministry of Industry and Trade on 17 April 2026, amends Circular 10/2025/TT-BCT dated 1 February 2025. It sets out the method for determining and applying the avoided-cost tariff for small renewable energy plants and revises provisions related to power purchase agreements (PPAs). The Circular takes effect on 2 June 2026.
The revision is grounded in the Electricity Law No. 61/2024/QH15, as amended by Law No. 94/2025/QH15, together with regulations governing the organization and operation of the electricity market. The stated aim is to refine a transparent electricity-price mechanism that fits practical system operation and supports the development of small-scale renewable energy.
A key change is the standardization of rainy and dry seasons by region, which serves as a basis for price calculation:
The Circular also clarifies how to determine the North, Central, and South using the system’s dispatch boundary rather than administrative boundaries, to improve consistency as the grid becomes more interconnected.
The concept of “small renewable-energy plants” is standardized through capacity thresholds as defined by the Ministry, providing clearer legal grounds for investors.
Under the Circular, the entity responsible for researching and proposing the avoided-cost tariff is explicitly identified as the Electricity Department under the Ministry of Industry and Trade. This replaces the prior generic term “State regulator for electricity” used in the Ministry.
The Circular revises the PPA term: the agreement is effective from the signing date and terminates no later than 20 years from the commercial operation date. This is intended to provide long-term legal stability aligned with the project life cycle.
For transitional provisions:
Circular 20 provides a detailed calculation method for the avoided-cost tariff, comprising three main components: the energy tariff, transmission losses, and the capacity price.
The energy tariff is based on the average fuel cost of the most expensive variable-cost plants dispatched. It is adjusted for fuel price changes and averaged annually.
In addition, the Circular sets the surplus energy price at 50% of the off-peak price during the rainy season to incentivize optimal system operation.
Transmission losses are calculated using region-specific formulas, with a “reward-penalty” mechanism depending on the connection point and power flow on the 500 kV line. The approach is designed to reflect true costs and encourage proper regional power allocation.
The avoided capacity price is based on a combined-cycle gas turbine (CCGT) plant. Inputs include investment, operating costs, debt-to-equity ratio, interest rate, and a discount factor. The Circular notes that the maximum avoided cost tariff is 10%.
After calculating annual investment costs and adjusting for transmission losses, the avoided capacity price is determined by dividing by the number of peak hours in the dry season.
The Circular also includes provisions aimed at removing barriers to direct electricity purchases and supporting the renewables sector.
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…
