Developing, Financing and Investing in Solar PV Projects in Lower Mekong Countries Workshop
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1 VIETNAM MINISTRY OF INDUSTRY AND TRADE Developing, Financing and Investing in Solar PV Projects in Lower Mekong Countries Workshop Regulatory framework for solar PV in Viet Nam and discussion on Decision 11 on Solar FIT Ho Chi Minh City, August 29 th,
2 Agenda 1. Regulatory framework for solar PV 2. Planned policy development to promote Renewable energy in Viet Nam 2
3 Summary of key policies and legislations for solar PV project development 1. Viet Nam s Renewable Energy Development Strategy up to 2030 with an outlook to 2050 via Decision number 2068/QD-TTg dated November 25 th, Revised National Power Development Master Plan for the period of with the vision to 2030 via Decision 428/QD-TTg dated March 18 th, Support mechanism for the Development of Solar Power Projects in Vietnam via Decision 11/QD-TTg dated April 11 th, Draft Circular stipulating Solar Power Project Development and Standardized Power Purchase Agreement for Solar Power Projects published on MoIT website on April 25th, 2017 for public comments 3
4 Highlights of the Decision 11/QD-TTg dated April 11th, 2017 on Support mechanism for the Development of Solar Power Projects in Vietnam 1. 4 Chapters and 16 Articles 2. Subject of application: all organizations and individuals participating in the development of solar power projects in Vietnam and other related stakeholder. 3. Two types of solar power projects: Grid-connected solar power projects are the ones which are connected to the national grid or the grid of the Electricity Buyer Roof-mounted Solar Power Project are the one that use solar panels installed on the rooftop or around the building and connected to the grid of the Electricity Buyer. 4. Solar power development planning (applicable only to grid-connected and exclude roof-mounted solar power projects) consists of national and provincial solar power development planning which will be established once for the period 2020 with vision to 2030 and shall be adjusted and supplemented if needed. 4
5 Highlights of the Decision 11/QD-TTg dated April 11th, 2017 on Support mechanism for the Development of Solar Power Projects in Vietnam 5. Support mechanism Grid connected projects: FIT: 9.35 USct/kWh PPA: 20 years Cell efficiency >16%, module efficiency >15% Adjustment of FIT: according to VND/USD exchange rate Apply to solar PV projects which have a commercial operation date before June 30 th, 2019 Roof-mounted projects: Net-metering mechanism encouraging self-consumption Remunerated for surplus: 9.35 USct/kWh at end of year or end of PPA Taxes, fees incentives for systems =< 50kWp to be studied and proposed by MOF 5
6 Highlights of the Decision 11/QD-TTg dated April 11th, 2017 on Support mechanism for the Development of Solar Power Projects in Vietnam 5. Other incentives: Import duty: all solar projects shall be exempted from import duty for imported goods as fixed assets of the projects. Corporate income tax (CIT): rate 0% from year 1-4, 5% from year 5-13, 10% from year 14-15, 20% from year Land use: Solar power projects, transmission lines and transformers connected to the grid must be reduced or exempted from land use charge and rent pursuant to current regulations regarding the projects having investment incentives. 6
7 Highlights of the Decision 11/QD-TTg dated April 11th, 2017 on Support mechanism for the Development of Solar Power Projects in Vietnam 6. Power purchase obligation: EVN must give priority in purchasing full generating capacity of commercially operating solar power projects. Apply the Power Purchase Agreement which is valid for 20 years from the date of commercial use 7. Effectiveness: 1st June 2017 until 30th June 2019 MOIT to develop support schemes after 30/06/2019 7
8 Highlights of the draft Circular on Solar Power Project Development and Standardized Power Purchase Agreement for Solar Power Projects 1. 5 Chapters, 20 Articles and 3 Annexes 2. Contents, processes and procedures on formulation, appraisal and approval of the national and provincial solar power development plan 3. Contents, process and procedures on preparation, appraisal and approval of the inclusion of solar power projects into the solar power planning 4. Standardized Power Purchase Agreement for grid-connected and roof-mounted solar power projects 8
9 2. Planned policy development to promote RE in Viet Nam 1. Review/ revise FIT for wind power 2. Study and issue the National solar power development planning 3. Study and issue Renewable Portfolio Standard RPS 4. Study and propose Direct PPA 5. Auction/Bidding mechanism for RE projects 6. Study and establish RE Fund 9
10 VIETNAM MINISTRY OF INDUSTRY AND TRADE THANK YOU 10
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