Vietnam Government Approves New Feed-In-Tariff Scheme for Solar Power

April 2020

The government of Vietnam has approved feed-in-tariff mechanism for solar energy. The previous mechanism expired on 30 June, 2019. The new scheme will be applied for 20 years starting from May 2020.

Under the new tariff scheme, tariffs for rooftop solar, floating solar and ground-mounted solar power projects have been set at VND 1,943 (8.38 US cents), VND 1,783 (7.69 US cents) and VND 1,644 (around US 7.09 cents) for each kWh respectively. The rates are around 24% lower compared to the earlier feed-in-tariffs, will be applied for solar projects approved before November 23, 2019 and starting commercial operations between 1 July 2019 and 31 December 2020.

As of 2019, the country had more than 80 solar power plants with a total capacity of 4.46 GW connected to the national grid. Organizations and individuals producing rooftop solar power can sell a part or all electricity output to state-owned Vietnam Electricity (EVN), the country’s largest power company, or others who do not use EVN’s power grid. Prices can be negotiated between sellers and buyers.

As one of Asia’s fastest-growing economies, Vietnam urgently needs more power to meet the requirements of its booming industry and burgeoning population. By 2030, the country’s demand for energy will reach about 130 GW of electricity, more than double the current 54 GW.

The approval of the new scheme comes after the new energy strategy released by the Communist Party’s decision-making politburo in February to promote energy security and sustainable socio-economic development. The country has ambitions to source up to 20% of the country’s electricity from renewables by 2030.

(Source: Vietnam News)

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