On 19 September 2019, the Ministry of Industry and Trade of Vietnam (MOIT) submitted to the Prime Minister the final draft decision of the follow-up regulation on the mechanism for encouraging the development of solar power projects in Vietnam from 1 July 2019 to 31 December 2021. It is expected that the new decision will be issued soon.
The draft decision aims mostly at encouraging solar power project development in Southern Viet Nam given the estimated major power demand of up to 8 GW in this area by 2021.
Compared to the previous drafts, the final draft does not determine feed-in-Tarifs (FiT) based on regions but only on technology types. The draft classified solar power projects into three groups as follows:
- Ground-mounted solar energy project: VND 1,620/kWh (USD 7.09 cent/kWh);
- Floating solar energy project: VND 1,758/kWh (USD 7.69 cent/kWh)
- Rooftop solar energy project: VND 2,156/kWh (USD 9.35 cent/kWh)
The FiT prices shall be applied for solar power projects reaching commercial operation date (COD) within the period from 1 July 2019 to 31 December 2021 and applied for 20 years from the COD date. For Ninh Thuan province, solar power projects that reach COD before 1 January 2022 (within the capacity of 2,000 MW as already approved by the Government) the FIT price still remains 9.35 cent/kWh.