Lawyer in Vietnam Dr. Oliver Massmann - VIETNAM - SOLAR POWER - MOIT's PROPOSAL ON SOLAR POWER AUCTION POLICY - WHAT YOU MUST KNOW:

1. VIETNAM - SOLAR POWER - MOIT's PROPOSAL ON SOLAR
POWER AUCTION POLICY - WHAT YOU MUST KNOW:
In Notification No. 402/TB-VPCP dated 22 November 2019, the Prime Minster concluded that
rational future development of the sector necessitates introducing an auction system for solar
projects. FiTs will continue to apply only for rooftop solar projects and certain already-
approved ground-mounted projects. Thus, the PM had instructed the MOIT to prepare and
proposal solar power auction policy for his consideration and approval.
On 19 March 2020, the MOIT has finally submitted 3 options for implementation of
competitive auctions on solar power projects to the PM under its Proposal No. 1986/TTr-BCT
("Proposal"). However, MOIT has suggested the PM to implement Option 1 first in the period
up to June 2021. In terms of Options 2&3, MOIT would keep working on the pilots for
implementation and report the PM for approval later. The MOIT also advised the PM to
consider approving addition of 21 solar power projects into the power development plan after
policy for Option 1 has been adopted.
Under the Proposal, 4000 MW solar power capacity must be supplemented for the period up
to 2025 and 5,600 MW solar power capacity must be supplemented for 20226 - 2030.
In brief, the key contents of three Options are as follows:
Option 1: The plan is to select solar power projects based on competitive power prices offered
by the investors. Total pilot capacity for participating the auction is approx. 1600 MW of
which (i) 600 MW of solar power projects which already added into the power master plan and
(ii) 1000 MW solar power projects which have not yet included in the power master plan
approval. The final capacity is awarded to be only 1000 MW. This plan will be conducted up
to June 2021. The ceiling competitive price for auction is FIT2 i.e., 7.06 UScent for ground-
mounted projects and 7.69 UScent for floating projects. The most competitive price offers will
be awarded. The PPA template for 20 years from COD and auction dossier / procedure will be
guided and issued by the MOIT.
Option 2: The plan is to select solar power plants based on transformers location of EVN, the
preferable projects will satisfy competitive prices, technical details and locations, etc.
Option 3: the plan is to select suitable investors via auction for specific large scale solar power
projects. This plan is applicable for solar power projects of 100MW or more only.

2. We will closely monitor to update on any further changes.
Please contact Dr. Oliver Massmann under omassmann@duanemorris.com or any other lawyer
in our office list if you have questions on the topic or any other lawyer in our office listing. Dr.
Oliver Massmann is the General Director of Duane Morris LLC.