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VIETNAM – SOLAR POWER – NEW FEED IN TARIFFS – NEW GUIDANCE FOR SOLAR ENERGY DEVELOPMENT – WHAT YOU MUST KNOW:

Dr. Oliver Massmann by Dr. Oliver Massmann
March 15, 2023
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 It has been 10 month waiting after Decision 11/QDD-TTg expired, now the Prime Minister has issued Decision 13/2020 on the incentive mechanism for solar power development. We would like to update the very new key issues as follows:

  1. FIT scheme

Following notification No. 402/TB-VPCP of Prime Minister Nguyen Xuan Phuc, now FIT scheme is confirmed that it only applies for the following projects:

– For grid-connected projects: the projects that: (i) has in-principle investment decision before 23/11/2019, and (ii) COD of the whole or part(s) of project from 01/7/2019 to 31/12/2020.

– For grid-connected projects in Ninh Thuan: (i) the projects that were included into power development plans, (ii) COD before 01/01/2021, and (iii) the accumulated capacity not exceeding 2,000 MW.

It is noted that regarding grid-connected projects, FIT scheme is only applied for projects with solar cell’s capacity more than 16% or module more than 15%.

– For rooftop projects: the projects that are brought into operation, generate electricity and have electricity meter readings confirmed from 01/7/2019 to 31/12/2020.

The term of FIT scheme for the above projects shall be applied for 20 years from COD.

  1. FIT2

FIT2 are as follows:

– Floating solar energy projects: UScent 7.69
– Ground mounted solar energy projects: UScent 7.09
– Rooftop energy solar energy projects: UScent 8.38

For Ninh Thuan province, grid-connected solar power projects that (ii) COD before 01/01/2021, and (iii) the accumulated capacity not exceeding 2,000 MW will be applied the FiT of UScent 9.35.

  1. Competitive mechanism

The projects that do not fall with the scope of FIT scheme shall be subject to competitive scheme.

  1. COD definition

COD of the whole or part(s) of the grid-connected project is defined as the date that the whole or part(s) of the project  is ready to sell electricity to the buyer and satisfy the follows:

  1. a) Has finished the initial tests for the whole or part(s) of the construction;
  2. b) Has been issued electricity operation license;
  3. c) Has agreed to the index of the electricity meter in order to make payment.
  1. Rooftop project definition

Rooftop projects are the projects have photovoltaic panels installed on the rooftop of the construction and have the capacity not exceeds 01 MW, connect to the grids which is less than 35kV.

*************

Please do not hesitate to contact Dr. Oliver Massmann under [email protected] if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.

 

 

 

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About Us

Dr. Oliver Massmann is an International Attorney at Law and a Financial Accountant and Auditor.

Dr. Massmann received his PhD with Major in International Business Law.

Dr. Massmann has over 20 years experience working as commercial lawyer in Vietnam. Dr. Massmann is fluent in Vietnamese language, negotiation and presentation level.

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Dr. Oliver Massmann can be reached under [email protected]

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