Proposed New Solar Feed-In-Tariff
On 22 February 2019, the Ministry of Industry and Trade of Vietnam (the “MOIT”) publicized a draft Decision (the “Draft Decision”) that will replace Decision No. 11/2017/QD-TTg issued by the Prime Minister of Vietnam dated 11 April 2017 ( “Decision 11”) on mechanisms to encourage the development of solar power projects in Vietnam. The Draft Decision is expected to be in full force from 1 July 2019, if approved by the Prime Minister of Vietnam, and introduces major changes in comparison with Decision 11. This Draft Decision modifies the previous draft issued on 29 January 2019.
CLASSIFICATION OF SOLAR POWER PROJECT
The Draft Decision differentiates between following four types of solar power projects:
- Floating solar power project – a grid-connected solar power project with solar panels installed on structures floating on a water surface, directly connected to the power grid of the Electricity Vietnam (“EVN”).
- Ground-mounted solar power project – a grid-connected solar power project having solar panels, being (a) installed on the ground, directly connected to EVN’s power grid, or (b) installed on a rooftop, with capacity of more than 1 MWp, directly connected to EVN’s power grid.
- Solar power project with an integrated storage system – a grid-connected solar power project that uses an electrochemical power storage system and that is directly connected to EVN’s power grid. The stipulated minimum efficiency of the storage system is 25% of alternating current capacity in two hours.
- Rooftop solar power project – a solar power project which has solar panels installed on a rooftop or attached to a building with the capacity of less than or equal to 1 MWp.
For more information, click https://mailchi.mp/dfdl/vietnam-legal-update-proposed-new-solar-feed-in-tariff?e=ffed854a8f