Vietnam releases FIT and net metering scheme for solar

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Vietnam’s government has finally released the Decision No. 11/2017/QD-TTg on supporting the development of solar power. The new regulation, which introduces a Feed-in Tariff (FIT) scheme for solar plants and a net metering mechanism for residential PV, will come into force on Jun. 1, 2017 and will expire on Jun. 30, 2019.

Under the new scheme, owners of grid-connected PV power plants will be granted a 20-year FIT of 2,086 ($0.091)/kWh excluding VAT. This rate, however, is subject to changes based on the VND/$ exchange rate. The power generated by all grid-connected PV installations will be sold to local power utility Electricity Vietnam (EVN). Furthermore, solar power producers will also be exempted from paying taxes on importing goods for their fixed assets.

As for net metering, Vietnam’s Ministry of Trade and Industry will be in charge of annually issuing the related buying and selling prices for rooftop grid-connected PV systems based on the VND/$ exchange rate.

Several large-scale PV projects were announced in Vietnam over the past months. In April, the government of the Vietnamese region of Binh Phuoc revealed that Indian module manufacturer and project developer Tata Solar was planning the construction of a 100 MW solar park in the region.

In mid-March, the Country’s Dak Lak province granted series of MoUs and licences for a raft of solar PV projects, including a reported 300 – 500 MW solar farm to be developed by U.S. power firm AES Corporation and a mooted 2 GW project by local firm Xuan Thien Daklak.

At the end of March, the government of the Yen Bai province announced it was teaming with South Korean renewable energy developer Solkiss to finalize plans to develop 500 MW solar project at Thac Ba Lake.

In January, the U.S. heterojunction PV cell specialist Natcore secured initial approval to oversee construction of 200 MW of solar capacity in Binh Thuan province.

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