New Decision on incentives for the development of solar power projects in Vietnam

Quyết Định mới về khuyến khích phát triển các dự án điện mặt trời tại Việt Nam

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On 6 April 2020, the Prime Minister issued a new Decision (Decision 13/2020) to replace Decision 11 dated 11 April 2017 on incentives for the development of solar power projects in Vietnam (Decision 11/2017), which expired 10 months ago. This article summarizes certain key issues of this new Decision. Written by Le Thanh Nhat and Nguyen Thuc Anh.

New Decision on incentives for the development of solar power projects in Vietnam

On 6 April 2020, the Prime Minister issued a new Decision (Decision 13/2020) to replace Decision 11 dated 11 April 2017 on incentives for the development of solar power projects in Vietnam (Decision 11/2017), which expired 10 months ago.

Below are the summaries of certain key issues of this new Decision:

First step in opening up competitive power market

Decision 13/2020 no longer limit the power purchaser to only Vietnam Electricity (EVN) and its member units but extends to other organisations and individuals purchasing power from the power seller. This seems to enable the power sellers to sell directly to the end-user. However, it is unclear whether:

 both “grid-connected solar project” and “rooftop solar project”; or

 only “rooftop solar project”,

can sell power directly to other organisations and individuals since only the “rooftop solar project” has explicit provision that allows selling electricity generated from rooftop solar power systems to individuals and organisations other than EVN.

New General FiT Scheme and Special FiT

Decision 13/2020 introduces new General FiT scheme based on the technology of solar power projects as follows:

 

Vào ngày 6 tháng 4 năm 2020, Thủ Tướng Chính Phủ đã ban hành một Quyết Định mới (Quyết Định 13/2020) thay thế Quyết Định 11 ngày 11 tháng 4 năm 2017 về khuyến khích phát triển các dự án điện mặt trời tại Việt Nam (Quyết Định 11/2017), đã hết hiệu lực 10 tháng trước. Tóm tắt về một số vấn đề quan trọng của Quyết Định mới này có được xem tại Đây:

Bài viết này được thực hiện bởi Lê Thanh Nhật và Nguyễn Thục Anh.

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Venture North Law Firm

Venture North Law Limited (VNLaw) is a Vietnamese law firm established by Nguyen Quang Vu, a business lawyer with more than 17 years of experience. VNLaw is a boutique professional law firm focusing on corporate, commercial and M&A practices in Vietnam. Our goal is to be an efficient, innovative and client-friendly firm. To achieve that goal, we are designing a working environment and a compensation system which encourage our lawyers to provide more efficient services to clients and to focus on the long term benefit of the firm.

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  • Energy, Electricity, Oil & Gas
  • General

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