Vietnam Cuts Gas-Fired Power Price to Boost Grid Stability

The Vietnamese government has set a price cap for gas-fired power in 2026 at $0.13 per kilowatt-hour (kWh), according to Decision No. 1882 issued on July 23.

This move establishes a framework for power prices, ranging from zero to VND 3,410.64 per kWh for combined-cycle gas turbine plants, which will serve as the baseline for negotiating power purchase agreements (PPAs) between state utility Vietnam Electricity (EVN) and power generation companies.

The price cap is based on a 1,008 MW benchmark facility operating at 85 percent load, factoring in a natural gas price of $11.98 per million BTU, delivery costs of $1.87 per million BTU, and an exchange rate of VND26,378 to the U.S. dollar.

This move is part of Decree 100, which aims to unblock billion-dollar gas power investments and stabilize the national grid by introducing government incentives such as full pass-through of fuel costs into electricity tariffs and minimum long-term contract output rates for imported LNG projects.