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Regulating the prices of solar power in coming 20 years

Regulating the prices of solar power in coming 20 years - 

On Sept.12, 2017, Ministry of Industry and Trade (MOIT) officially issued the Circular on regulation for the development planning and pattern power purchase agreement (PPA) for solar power projects.

The Circular regulates, the solar power projects are entitled to sell electricity at delivery point for 2086 VND/kWh (9.35 US cents) adjusted for fluctuation of US$ - VND exchange rate. The buyer is responsible to purchase the entire output of the grid connected solar project having been put into commercial operation before June 30, 2019 accordingly to the pattern PPA for 20 years.

The Circular includes 5 Chapters, 22 Articles for regulation on development planning; electricity prices and pattern EPCs of the grid connected and rooftop solar power projects; responsibility of the relevant organizations and individuals.

The rooftop solar power projects enjoying the net-metering mechanism use two-way meters. When finishing a year or a PPA, the excess electricity will sold for buyer by the above mentioned price.

Besides, the solar power projects are entitled to the incentives of corporate income, import taxes; exemption of land use and land rent fees in accordance with the current regulations.

Previously, MOIT sent to the government a report on the adjusting regulations of a supporting mechanism for wind power development in Vietnam, in which the price of wind electricity from the mainland projects increased to 8.77 US cent/kWh and from offshore projects to 9.97 US cent/kWh. This tariff will be applied up to the end of 2020 and participate in production costs of EVN by 0.08 VND/kWh in 2017 and 0.23 VND/kWh in 2019.

VietnamEnergy.vn

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