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Solar power developing in Vietnam by net-metering

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Solar power developing in Vietnam by net-metering

The Ministry of Industry and Trade’s (MoIT) Circular No.16/2017/TT-BCT on solar power project development and model power purchase agreement (PPA), approved feed-in-tariff (FiT) rate of 9.35 US cents per kilowatt-hour (kWh) for grid-connected solar farms, exclusive of VAT.

The FiT for the following years shall be adjusted according to the central exchange rates of the Vietnamese dong against the US dollar.

The provided tariffs apply only to solar power plants which reach their commercial operation dates before June 30, 2019, and will be limited to a period of 20 years.

He added there are many reasons behind this, but the most important ones are the lack of government guarantee of EVN’s payment obligation in the PPA and currency hedging. Thus, the government should consider a mechanism where EVN has to fulfill its payment obligation and the investors are ensured that they will be able to remit their profits abroad in foreign currency.

Circular 16/2017/TT-BCT will be valid from 26 October 2017