- Solar energy figures (source: MOIT):
– June 2018: about 286 projects proposed to supplement to the Master Plan with total capacity of 22.723,42 MWP (equivalent to 19,300 MW): 90% of these projects is now still in the licensing process.
– June 2018: about 100 projects have been approved to the Master Plan with total capacity of 4,700 MW
Details as below:
|Proposed to supplement to Master Plan/MWp
|Supplemented to Master Plan/MWp
|Ba Ria-Vung Tau
– 10 (ten) PPAs have been signed recently.
– At the end of this September (2018) the first solar energy project will connect to the grid (35 MW in Hue province)
– PM Nguyen Xuan Phuc has approved to extend the COD deadline for Ninh Thuan province until the end of 2020 (applied to 2000 MW has been approved to Master Plan). Official document on this is to be issued soon (Decision 104 dated 8 August 2018 attached).
– Deputy PM Trinh Dinh Dung has decided and instructed relevant competent authorities to do the following (Notification No.296/TB-VPCP dated 15 August 2018 attached):
+ MOIT to continue consider and approve to supplement solar energy projects to the Master Plan if such solar energy projects meet one of the following conditions:
➢ MOIT has completed the investigation process of the application to supplement to Master Plan of such project; or
➢ Projects have submitted the application to supplement to Master Plan to MOIT and such projects are located in provinces that have potential to develop solar energy projects, but still only have few solar projects in the Master Plan.
+ EVN to speed up the process of siging Grid-connection agreements and PPAs with projects that have already in the Master Plan as well as invest to improve the transmission lines.
- After 30 June 2019, what are the new regulations for solar energy projects?
– The Government will issue NEW FIT price and NEW PPA that can be used for projects after 30 June 2019. The NEW FIT price will be much more lower than the current one (verbally confirmed by Mr. Nguyen Ninh Hai, Deputy Director of New and Renewable Energy Department, MOIT).
– The Government is now also working on a Competition Auction System that may be completed at around the 2020. The NEW FIT price is to be applied until this Competition Auction System is completed.
III. Rooftop solar energy news
– Family households now can install the rooftop solar energy system for family use and then can sell the unused amount of electricity of EVN. EVN will install free electricity meter for family households.
– As for the time being, MOF still has not finalize the tax relevant issues for the above structure, family households now still have to pay their monthly electricity bill after installing the rooftop solar energy system (that cost minimum of USD3000) and then at the end of the year EVN will calculate and make payment to the family households. This is the reason why there are not many people choose to install the rooftop solar energy system right now. In Ho Chi Minh city, now there have been only 750 families installing this rooftop system.
– World Bank has completed the investigation of rooftop solar energy potential of Ho Chi Minh city. They find that Ho Chi Minh city has about 100 million m2 that can be used for rooftop solar energy installation.
– The city has the plan “Million Green Homes” program that encourages people living in HCMC to install rooftop solar energy system (they can sell unused electricity to EVN with the FIT price for rooftop) and the Govt also suggests to increase the FIT price for rooftop to develop this program.
– Due to the fact that the investment amount for this family system is from USD3000-5000, many families may not afford this. The city is looking for foreign investors and/or cooperate with banks to support family households on this.
This will be great opportunity for roof top solar energy investors (in addition to rooftop solar energy projects on commercial buildings/Industrial Zones).
- FIT price for wind energy projects
MOIT has proposed the below new higher FIT price for wind energy project to PM for consideration:
o FIT price for Onshore project: 8.5 cents
o FIT price for Offshore project: 9.8 cents
Still waiting for PM’s final decision on this new FIT.
If you have any question on the above, please do not hesitate to contact Dr. Oliver Massmann under firstname.lastname@example.org . Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC. Thank you very much!