Decision 13/2020/QD-TTg on Mechanisms for solar energy development in Vietnam will expire on 31 December 2020, meaning after this date, there is no legal instrument guiding the development of rooftop solar power projects in Vietnam (“RTS”).
The electricity sale and purchase form as well as electricity purchase price from 1 January 2021 are not determined. The Department of Electricity and Renewable Energy is examining suitable power model, scale and purchase price for each type of RTS and will report the result to the Ministry of Industry and Trade in the first quarter of 2021. Afterward, MOIT will submit its plan for future development of RTS for the Prime Minister’s approval.
In the meantime, RTS investors should be aware of the followings:
- EVN and its corporations (“EVN”) will stop receiving and processing investors’ request for grid connection and request to sign power purchase agreement from 1 January 2021 until there’s further instruction. As a result, EVN will not record electricity generated to the grid by the abovementioned investors as well as will not buy electricity from such investorsbefore the Prime Minister issues a new decision.
- For RTS that has Commercial Operation Date before 1 January 2021, EVN must confirm with investors on the scale and capacity of the project part(s) that went into operation.EVN to finialize the list of RTS systems that operare (in part or in full) before 1 January 2021.
- Consumers are encouraged to install RTS systems with scale and capacity suitable with their use and financial resources in order to reduce electricity consuming price overall.
For your information, under Decision 13/2020/QD-TTg that took effect on 6 April 2020, the Feed-in Tariffs for solar power are:
| No. | Solar power technology | Price | |
| VND/kWh | Equivalent in US cent/kWh |
||
| 1 | Floating solar energy projects | 1,783 | 7.69 |
| 2 | Terrestrial solar energy projects | 1,644 | 7.09 |
| 3 | Rooftop solar power systems | 1,943 | 8.38 |
Note: Conversion rate shall be the central conversion rate of VND to USD publicized by the State Bank of Vietnam in March 10, 2020.
Please do not hesitate to contact the author Dr. Oliver Massmann under omassmann@duanemorris.com. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC and the only foreign lawyer presenting in Vietnamese language to members of the NATIONAL ASSEMBLY OF VIETNAM.
