On 06/4/2020, Prime Minister issued Decision No. 13/2020/QD-TTg on incentives mechanism for development of solar power in Vietnam (“Decision 13”), taking effect as of 25 May 2020. Decision 13 imposed a new Feed-in Tariffs of note for solar power projects in Vietnam as follows:
1. Regarding grid-connected solar power projects
Grid-connected solar power projects are eligible for the new FITs scheme of US cents 7.69/kWh (applicable to floating solar energy projects), US cents 7.09/kWh (applicable to terrestrial solar energy projects) only if such projects obtained the in-principle approval prior to 23 November 2019 and shall achieve the commercial operation date (COD) within 01 July 2019 to the end of 31 December 2020. The new FITs shall be applied for 20 years from the commercial operation date.
Saving for Ninh Thuan Province, grid-connected solar power projects located in this province shall be subject to a FITs of US cents 9.35/kWh, provided that (i) such projects have been recorded in the electricity development planning of all levels heretofore, (ii) the commercial operation date shall be achieved before 01 January 2021, and (iii) the capacity shall not exceed 2,000 MW in the aggregate.
Grid-connected solar power projects that fails to satisfy the abovementioned requirements regarding the achievement of regulatory COD and in-principle approval shall subject to a separate FITs which is determined by virtue of competitive mechanism.
2. Regarding rooftop solar power systems
Decision 13 officially recognizes the private commercialization of electricity generated by the rooftop solar power systems. In particular, on top of the Vietnam Electricity (EVN), the power purchaser could be other organizations or individuals in case of not using EVN’s grid, then the electricity purchase price, as well as power purchase agreement, is entitled to be agreed upon by parties.
In case of executing a power purchase agreement with EVN or its subsidiaries, the electricity purchase price is US cents 8.38/kWh, applied to rooftop solar power systems whose power generates and electricity meter reading confirmation dates range from 01 July 2019 to 31 December 2020. Such electricity purchase price shall be applied for 20 years from the date of electricity generation.