Electricity activities are conditional business activities. Electricity generation, transmission, distribution, wholesale and retail are subject to an Electricity Operation License, except for cases exempt from licensing under applicable laws. Organizations conducting electricity activities must satisfy the conditions applicable to each respective field before being granted a license.
So, which electricity activities require a license? Which cases are exempt from the Electricity Operation License? What conditions must an organization satisfy, and what are the required documents and procedures for obtaining the license?
In the following article, Hong Bang Law Firm will provide an overview of the Electricity Operation License under applicable laws.
LEGAL BASIS
- Law on Electricity No. 61/2024/QH15;
- Decree No. 61/2025/ND-CP dated March 4, 2025 of the Government detailing a number of provisions of the Law on Electricity regarding electricity operation licenses;
- Circular No. 30/2026/TT-BTC dated March 27, 2026 of the Ministry of Finance prescribing the rates, collection, payment and management of appraisal fees for electricity operation licenses;
- Other relevant legal documents.
ELECTRICITY ACTIVITIES SUBJECT TO AN ELECTRICITY OPERATION LICENSE
Under Article 30 of the Law on Electricity 2024, the following electricity activities are subject to an Electricity Operation License:
- Electricity generation;
- Electricity transmission;
- Electricity distribution;
- Electricity wholesale;
- Electricity retail.
An organization that satisfies all applicable conditions may be granted an Electricity Operation License, except in cases exempt from licensing. An Electricity Operation License may be issued for one or multiple electricity activities.
An Electricity Operation License shall not be issued for the investment stage. Investment activities in the electricity sector shall be carried out in accordance with the laws on investment.
CASES EXEMPT FROM THE ELECTRICITY OPERATION LICENSE
Under Article 33 of the Law on Electricity 2024, the following cases are exempt from the Electricity Operation License:
- An organization investing in the construction of a power generation facility for its own use, without selling electricity to other organizations or individuals, where the installed capacity is below the threshold prescribed by the Government;
- An organization conducting electricity generation activities with an installed capacity below the threshold prescribed by the Government;
- An organization conducting electricity trading in rural, mountainous, border or island areas that purchases electricity from the distribution grid at a capacity below the prescribed threshold for direct sale to electricity customers in such areas;
- An organization generating electricity supplied to the national grid, which is exempt from the electricity wholesale license;
- The national power system and market operation units;
- Components or construction works of emergency power sources and power grids, which are exempt from licensing for 06 months from the time they are put into operation and use;
- Other electricity activities that do not fall within the licensed activities specified in Clause 1, Article 30 of the Law on Electricity 2024.
Organizations falling within the cases exempt from licensing must still comply with regulations on operation management, technical regulations, electrical safety, electricity prices and other obligations applicable to their respective electricity activities.
The specific capacity thresholds for cases exempt from the Electricity Operation License are prescribed by the Government under Decree No. 61/2025/ND-CP.
CONDITIONS FOR OBTAINING AN ELECTRICITY OPERATION LICENSE
Under Article 31 of the Law on Electricity 2024 and Decree No. 61/2025/ND-CP, an organization applying for an Electricity Operation License must satisfy both general conditions and conditions applicable to the respective electricity activity.
General conditions include:
- Being lawfully established in accordance with applicable laws;
- Having technical management personnel, business management personnel and personnel directly engaged in operation work who satisfy the requirements regarding quantity, qualifications and professional expertise.
In addition to the general conditions, the organization must satisfy the specific conditions applicable to the electricity activity for which the license is sought.
For example, for electricity generation activities, the organization must satisfy requirements concerning technical management personnel and personnel directly engaged in operation; the power generation facility must comply with the relevant planning, be constructed and installed in accordance with the approved design, and satisfy the conditions for being put into operation and use. The organization must also comply with relevant regulations on investment, land, environment, fire prevention and firefighting, as well as applicable technical requirements.
For electricity distribution, wholesale and retail activities, licensing conditions are determined based on the respective scope, scale and characteristics of each activity under Decree No. 61/2025/ND-CP.
DOSSIER COMPONENTS
An organization applying for a new Electricity Operation License shall prepare 01 dossier in accordance with Decree No. 61/2025/ND-CP.
In general, the dossier includes:
- Application for an Electricity Operation License using Form No. 01 issued together with Decree No. 61/2025/ND-CP;
- Summary list of technical management personnel and personnel directly engaged in operation work using Form No. 02;
- Documents evidencing that the organization satisfies the licensing conditions applicable to the relevant electricity activity;
- Documents relating to the relevant power works, projects, personnel and other technical conditions applicable to the electricity activity for which the license is sought.
Where multiple organizations jointly conduct an electricity activity in a specific field, they must provide a written authorization appointing one organization to act as their representative in carrying out the licensing procedure. Where operation management is leased, assigned or authorized to another organization, the relevant contract and documents evidencing such lease, assignment or authorization must also be provided.
COMPETENT AUTHORITY
The authority to issue Electricity Operation Licenses is determined based on the field, scope and scale of the electricity activity.
The Ministry of Industry and Trade is responsible for issuing licenses in cases falling under its licensing authority, including electricity generation activities within its jurisdiction and other electricity activities as prescribed by law.
The provincial-level People’s Committee has authority to issue Electricity Operation Licenses in certain cases involving electricity generation, distribution, wholesale and retail activities as decentralized under Decree No. 61/2025/ND-CP.
Therefore, before preparing the dossier, the organization should determine the electricity activity, scale and scope of operation in order to identify the appropriate licensing authority.
PROCEDURES FOR OBTAINING AN ELECTRICITY OPERATION LICENSE
Step 1: Preparation and Submission of the Dossier
The organization shall prepare 01 dossier corresponding to the electricity activity for which the license is sought and submit it to the competent authority.
For dossiers under the authority of the Ministry of Industry and Trade, the application shall be submitted through the online Public Service Portal of the Ministry of Industry and Trade.
For dossiers under the authority of the provincial-level People’s Committee, the application may be submitted in person, by post or online through the competent authority’s electronic portal, where available.
Step 2: Dossier Review and Appraisal
For procedures under the authority of the Ministry of Industry and Trade, within 05 working days from receipt of the dossier or supplemented dossier, the licensing authority shall review its completeness and validity.
If the dossier is incomplete, the licensing authority shall request the organization to supplement it. If the dossier falls outside its jurisdiction or the organization is not subject to licensing, the application shall be rejected with reasons clearly stated.
Once the dossier is complete and valid, the licensing authority shall appraise the organization’s eligibility for the license and may seek opinions from relevant agencies or organizations or conduct an on-site inspection of the relevant facility where necessary.
For procedures under the authority of the provincial-level People’s Committee, the time limit for reviewing the completeness and validity of the dossier is 03 working days from receipt of the dossier or supplemented dossier.
Step 3: Issuance of the Electricity Operation License
Where the dossier satisfies all applicable conditions and the organization has fulfilled its obligation to pay the prescribed appraisal fee, the competent authority shall issue the Electricity Operation License.
Where the organization fails to satisfy the licensing conditions, the competent authority shall refuse to issue the license in writing and clearly state the reasons.
PROCESSING TIME
For new issuance, after receiving a complete and valid dossier, the appraisal and licensing period under the current procedures is 14 days for procedures under the authority of the Ministry of Industry and Trade and certain procedures under the authority of provincial-level People’s Committees, excluding the time required to review the completeness and validity of the dossier.
In complicated cases, the licensing authority may extend the appraisal period by no more than 10 days and must notify the applicant organization in writing.
APPRAISAL FEE
An organization applying for an Electricity Operation License must pay the appraisal fee for the issuance of an Electricity Operation License in accordance with applicable regulations.
The rates, collection, payment and management of such fees are currently governed by Circular No. 30/2026/TT-BTC, which took effect on May 11, 2026.
VALIDITY PERIOD OF THE LICENSE
Under Article 20 of Decree No. 61/2025/ND-CP:
- An Electricity Operation License for electricity generation and transmission is valid for 20 years;
- An Electricity Operation License for electricity distribution, wholesale and retail is valid for 10 years.
In certain cases, the license may be issued for a shorter period depending on the remaining term of the relevant project or facility, actual conditions or the term requested by the applicant.
RESULT
Upon completion of the procedure, the organization shall be granted:
ELECTRICITY OPERATION LICENSE
The license shall be issued for one or multiple electricity activities and specify the scope of electricity operation approved by the competent authority.
The above is our article on the Electricity Operation License. Should you require further legal advice or detailed information on the conditions, dossier and procedures for obtaining an Electricity Operation License, please contact Lawyer Nguyễn Đức Trọng via hotline: 0912.35.65.75, or send your service request via email: lawyer@hongbanglawfirm.com.
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