New energy power exempted from land use fees and land rents

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 energy and new energy.

The Decree stipulates that renewable energy projects with installed power storage systems and connections to national power systems are prioritized for mobilization during peak hours of the power system according to regulations, except for self-produced and self-consumed power sources.

The Decree stipulates that research and development of technology in the fields 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 provisions.

The State prioritizes the implementation of research, development, application of science and technology, production of optical panels, wind turbines, and power source conversion equipment.

Other priority and support policies as prescribed by current law.

According to regulations, new energy projects are entitled to preferential and support policies specified in Clause 2, Article 23 of the Electricity Law when meeting the following conditions:

- New power projects are produced from 100% green hydrogen or 100% green am ammonia or 100% a mixture of green hydrogen and green ammonia.

- Power supply project for the national power system.

- The first project for each new type of energy plant.

The above projects enjoy the following incentive mechanisms:

Firstly, exemption from the use of the marine area during the basic construction period but not more than 3 years from the commencement of construction. 50% reduction of marine area use within 9 years after the exemption of the basic construction time.

Second, exempt land use fees and land rents during the basic construction period but not exceeding 3 years from the date of construction. After the exemption period of the basic construction period, the exemption and reduction of land use fees and land rents shall be implemented in accordance with the provisions of the law on investment and land.

Third, the minimum long-term contract electricity output is 70% within the loan principal repayment period but not exceeding 12 years, unless the investor and the electricity buyer have another agreement.

This mechanism is not applied in cases where the project cannot produce the minimum committed output due to the project's side or due to the need for load or the technical conditions of the power system, which cannot consume all output.

Fourth, after the prescribed deadline, the application of preferential mechanisms shall comply with the provisions of law at the time of expiration.

This Decree takes effect from March 3, 2025.