Solar power enjoys a price mechanism of 2,086 VND/kWh

The Ministry of Industry and Trade has just issued a Circular regulating project development and model power purchase contracts applicable to solar power projects.

Circular regulating the planning and development of solar power projects; electricity prices of grid-connected solar power projects and rooftop solar power projects; sample power purchase contracts applicable to solar power projects (grid-connected and rooftop); responsibilities of relevant organizations and individuals...

Solar power project.

Solar power projects enjoy the electricity selling price mechanism at the electricity delivery point of VND 2,086/kWh (equivalent to 9.35 Uscents/kWh, adjusted according to fluctuations in the VND/USD exchange rate). The electricity buyer is responsible for purchasing all electricity output from the grid-connected solar power project with a commercial operation date before June 30, 2019 according to the standard electricity purchase contract applied for 20 years.

Rooftop solar power projects are implemented with a net-metering mechanism using a two-way meter system. At the end of the year or when the power purchase contract ends, the excess electricity will be sold to the electricity buyer at the above price. In addition, solar power projects also enjoy incentives on corporate income tax, import tax, exemption from land use fees, land rent, etc. according to current regulations.

The Ministry of Industry and Trade said that the issuance of the Circular will help make transparent investment procedures for solar power development in Vietnam; promote investment in solar power development, add capacity to the power system, gradually increase the proportion of renewable energy in the national power system, reduce dependence on fossil energy sources that are gradually depleting, ensure energy security, reduce greenhouse gas emissions, protect the environment and promote sustainable development.

Rooftop solar power projects are implemented with net-metering mechanism using two-way meter system.

Vietnam is considered a country with potential for solar power development due to its geographical location near the equator, with an average solar radiation intensity of 4.5 - 5.5 kWh/m2/day.

In order to promote the exploitation and effective use of solar energy, the Government has set targets for solar power development in Decision No. 428/QD-TTg dated March 18, 2016 approving the adjustment of the National Power Development Plan for the period 2011 - 2020 with a vision to 2030. Specifically: increase the installed capacity of solar power to about 850 MW by 2020; about 4,000 MW by 2025 and about 12,000 MW by 2030.

According to Tin Tuc Newspaper