Illustrative image (Source: VNA)
Hanoi (VNA) - The Government has officially decided to approve a newfeed-in-tariff mechanism to encourage development of solar power in Vietnam.
Underthe new scheme signed by Deputy Prime Minister Trinh Dinh Dung, solarprojects approved before November 23, 2019 and starting commercial operationsbetween July 1, 2019 and December 31, 2020 will enjoy the new tariffs.
Specifically,the Government has fixed the tariffs for rooftop solar at 1,943 VND (8.38 US cents), floating solar at 1,783 VND (7.69 US cents) andground-mounted solar power projects at 1,644 VND (around US7.09 cents) for each kWh.
The new tariff, which is 24 percent lower than theearlier scheme, will be applied for 20 years starting May 22.
Forother subsequent projects, the feed-in-tariffs shall be determined throughbidding mechanism.
Thedecision was promulgated nine months after the 9.35 percent rate expired onJune 30 last year.
However,the purchase price of electricity from grid-connected solar power projects withplanning and commercial operation dates before January 1, 2021 with the totalcumulative capacity of not more than 2,000 MW in the southern province of NinhThuan – a solar power hotspot – will be entitled to a preferentialprice of 2,086 VND (9.35 US cents) per kWh.
Organisationsand individuals producing rooftop solar power are allowed to sell a part or allelectricity output to Vietnam Electricity (EVN),the country’s largest power company, or others who do not use EVN’s power grid.
Itmeans that power sellers and buyers can negotiate their prices and ways to useelectricity directly from the solar system themselves.
Thisdecision has been awaited by large-scale solar investors and households andbusinesses investing in rooftop solar power.
Theapproval of the new scheme comes after a new energy strategy was releasedby the Government in February, which aims to promote energysecurity and sustainable socio-economic development. It callsfor a much larger share of clean energy in Vietnam.
As oneof fastest growing countries in Asia, the country’s demand for energy isexpected to reach about 130GW of electricity by 2030, more than double thecurrent 54GW.
By theend of June, the country had a total of 82 solar power plants with a cumulativecapacity of 4.46GW connected to the national grid./.
