Government Decree 61/2025/ND-CP has provided detailed regulations on certain articles of the Electricity Law regarding the issuance of electricity operation licenses, to create a clear and transparent legal framework to help organizations and individuals participating in the electricity sector easily comply with and implement legal regulations. In the article below, Viet An Law will provide you with granting an electricity operation license under the new regime in Vietnam.
Table of contents
Electricity operations refer to activities of organizations and individuals in fields related to electricity. Specifically, electricity operations include activities such as planning, investment in electricity development, power generation, electricity transmission, electricity distribution, power system dispatch, electricity market transaction operation, wholesale electricity, retail electricity, specialized electricity consultancy, and other related activities. In general, electricity operations are activities related to the production, transmission, distribution, and consumption of electricity.
This Decree provides detailed regulations on several articles of the Electricity Law regarding electricity operation licenses, including regulations on:
The Decree stipulates specific conditions for each area of electricity operations, such as power generation, electricity transmission, electricity distribution, wholesale electricity, and retail electricity. Each field has different requirements regarding capacity, personnel, and infrastructure.
The Decree clearly states the necessary documentation for license applications, as well as the process and procedures that organizations need to follow to be licensed for electricity operations. For each specific electricity operation, the Decree will provide regulations on different documentation requirements based on Articles 8 to 17. Additionally, for new issuance, amendment, supplementation, reissuance, and extension of electricity operation licenses, the Decree will have specific timeframes.
Capacity levels exempt from licensing
This Decree also identifies specific capacity levels at which organizations may operate without requiring a license. Specifically, according to Article 21, the capacity levels that organizations are permitted to operate include:
“1. Power generation facilities for self-use, not selling electricity to other organizations or individuals:
a) No capacity limit for facilities not connected to the national electricity grid;
b) Installed capacity below 30 MW for facilities connected to the national electricity grid.
2. Installed capacity below 01 MW for power generation facilities selling electricity to other organizations or individuals is exempted from electricity operation licenses in the field of power generation.
3. Electricity business in rural, mountainous, border, and island areas that purchase electricity with a capacity below 100 kVA from the distribution grid to sell electricity directly to electricity consumers in rural, mountainous, border, and island areas are exempted from retail electricity licenses.”
Decree 61/2025 also stipulates the term of electricity operation licenses according to each field of operation and in each specific case. According to the provisions of Article 20 of the Decree, the terms of electricity operation licenses are regulated as follows:
Standard terms:
License reissuance:
In the case of license reissuance (such as change of name, address, or asset transfer), the license term will remain the same as the old license, according to the provisions in Clause 2 and Points a and c of Clause 3, Article 32 of the Electricity Law 2024.
The Decree clearly defines the authority of state agencies in issuing, amending, supplementing, reissuing, extending, and revoking electricity operation licenses. Specifically:
Ministry of Industry and Trade:
The Ministry of Industry and Trade is the authority to issue electricity operation licenses to organizations and individuals conducting electricity operations in the following fields:
Department of Industry and Trade:
The Department of Industry and Trade is the authority to issue electricity operation licenses to organizations and individuals conducting electricity operations in the following fields:
Authority to issue temporary licenses
When necessary, licensing authorities may issue temporary licenses to organizations and individuals to conduct electricity operations while waiting for the official license, but not exceeding 12 months.
The Decree also provides regulations on cases that may lead to the revocation of electricity operation licenses according to Article 23. Specifically, cases requiring license revocation include:
Failure to meet licensing conditions:
If the licensed organization or individual no longer meets the necessary conditions for electricity operations as stipulated by law.
Violation of legal regulations:
In cases where organizations or individuals seriously violate legal regulations on electricity operations, including but not limited to failure to fulfill financial obligations, non-compliance with electrical safety regulations, or failure to meet requirements of competent state authorities.
Cessation of operations:
Licenses will be revoked if organizations or individuals cease electricity operations for a long period without valid reasons or without notifying the licensing authority.
Change of purpose:
If organizations or individuals change the purpose of using the license without the consent of the licensing authority.
Inaccurate information:
In cases where organizations or individuals provide inaccurate or fraudulent information in the license application.
Failure to fulfill obligations:
If organizations or individuals fail to fulfill obligations as stipulated in the license, including obligations for maintenance and upkeep of electrical equipment and facilities.
Violations of environmental protection regulations:
Licenses may also be revoked if organizations or individuals violate environmental protection regulations during electricity operations.
The issuance of electricity operation licenses under this decree not only ensures safety and efficiency in electricity operations but also contributes to promoting sustainable development of the electricity industry in Vietnam. Viet An Law has presented specifically about the granting an electricity operation license under new regime in Vietnam in the above article. If you have any questions, please contact Viet An Law. Thank you!
