The new mechanism for encouraging the solar power development in Vietnam

According to the new Decision, the electricity tariffs excluding VAT for the solar power projects are regulated as follows: i) 7.09 UScent/kWh (equivalent to 1,644 VND) for projects on the ground, ii) 7.69 UScent/kWh (1,783 VND) for floating projects, iii) 8.38 UScent (1,943 VND) for rooftop projects. These tariffs will be adjusted in accordance with exchange rate fluctuation and applied during 20 years from the date of the project commercial operation.

The new tariffs in this Decision will be applied for the grid-connected solar power projects, the projects obtaining the investment policy decision before November 23, 2019 and having the commercial operation date for the whole project or for a part of the project in the period from July 01, 2019 to December 31, 2020. 

Particularly for Ninh Thuan province, the preferential electricity tariff as 9.35 UScent/kWh, equivalent to 2,086 VND/kWh will be applied for the grid-connected solar power projects included in PDP and commercially operated before January 01, 2021 with a total accumulation capacity of 2000 MW. 

For the rooftop solar power projects, in case that the electricity buyer is not Electricity of Vietnam (EVN), or the unit authorized by EVN, the electricity tariff and Power Purchase Agreement (PPA) are agreed upon by the parties in accordance with current provisions of the laws (The electricity buyer and the seller may agree on the tariff and the way to directly use electricity from the solar power system).

PV.