VIETNAM - RENEWABLE ENERGIES - SOLAR AND WIND PROJECTS - FIT/TARIFF UPDATE

1. VIETNAM - RENEWABLE ENERGIES -SOLAR AND WIND PROJECTS
- FIT/TARIFF UPDATE
On 21 July 2022, the MOIT has submitted another proposal to Prime Minister in relation to
policy applicable for “transitional solar/wind energy projects” which have been
implemented/invested but not achieved COD to enjoy FIT. Particularly, the MOIT explained
that it already submitted two options/proposals for the solar/wind tariff i.e., (i) direct price
negotiation between solar/ wind generators and EVN based on a tariff bracket issued by the
MOIT (NB: as proposed in Submission Letter 17 of the MOIT dated 27 Jan 2022) (Option 1)
and (ii) price tender whether EVN will (NB: as proposed in the OL1513 of the MOIT dated
24 March 2022) conduct tender for buying powers from solar/wind projects for 3 years in line
with a price bracket issued by MOIT (Option 2).
#1: MOIT stated that Option 1 is in line with the Electricity Law and the legal basis for
MOIT to issue the price power bracket is crystal clear. Thus, MOIT proposed the PM to
accept this option. Meanwhile, MOIT is of the view that Option 2’s legal basis is not very
clear and new laws must be promulgated to enforce this AND MOIT has received many
negative comments from the investors, especially in relation to the bankability of the project
and cash flow.
#2: MOIT proposed that Option 1 should be applicable for all transitional solar/wind power
projects. This means EVN will negotiate directly with solar/wind power generators of the
power price.
#3: MOIT proposed that Option 1 also should apply to future solar/wind power projects to
ensure the integrity/unification of the policy to renewable projects.
#4: MOIT even proposed that in terms of projects having commercially operated, the PM
should instruct the MOIT to review all PPAs to ensure the harmonized interests of the State,
EVN, investors and consumers.
#5: MOIT proposed the PM to abolish Decision 13 and Decision 39 governing FITs for
solar/wind projects.
Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if
you have any questions or want to know more details on the above. Dr. Oliver Massmann is
the General Director of Duane Morris Vietnam LLC.