On 6 April 2020, the Prime Minister of Vietnam issued decision 13/QD-TTg (“Decision 13”) on the mechanism to encourage solar power development in Vietnam, together with a new feed-in tariff (FIT) regime for solar power projects. The details of Decision 13 are summarised below:
- The new FIT rates:
|Solar power technologies
|Floating solar energy projects
|Land-mounted solar energy projects
|Rooftop energy solar energy projects
- Grid-connected solar power projects that obtained investment policy decisions prior to 23 November 2019 and which obtained Commercial Operation Date (“COD”) for the project or a part of the project from 1 July 2019 to 30 December 2020 are eligible for the new FIT rates. Grid-connected solar power projects in Ninh Thuan province which are included in power development plans and which have obtained the COD before 1 January 2021 with a total accumulated capacity not greater than 2,000 MW shall receive the FIT rate of VND 2,086/kWh for 20 years from the COD.
- The power generated from rooftop energy solar power projects may be sold to Vietnam Electricity (EVN) or to other organisations and individuals. Where power is sold to other organisations and individuals, the power purchase price and the power purchase agreement must be negotiated by the parties in accordance with the law.
This decision will take effect from 22 May 2020.
If you have any questions or require any additional information, kindly contact Kevin Hawkins or your usual contact lawyer at ZICO Law.
This article is for general information only and is not a substitute for legal advice.