The Government of Vietnam has released Prime Minister’s Decision No. 11/2017 / QƉ-TTg as the new official policy for the development of solar power projects in Vietnam. Decision No. 11 is aimed at attracting the private sector to invest in this hot investment area. It adopts, among other things, a Feed-in-Tariff (“FiT”) of USD cents 9.35 per kWh for grid-connected projects, as well as a net-metering scheme for rooftop projects, will be applied. However, Decision No. 11 leaves a number of the issues unresolved that will impact the bankability of solar projects, especially for large utility-scale solar power plants.

Click here to read our full summary analysis, which addresses the following:

  • Feed-in-Tariff (FiT) for grid-connected projects;
  • Net-metering scheme for rooftop projects;
  • The PPA term;
  • Incentives for solar power projects;
  • No mechanism for direct corporate PPAs;
  • Uncertainty on the policy after 30 June 2019;
  • Model PPA for solar power projects;
  • Classification and policies for different types and segments of solar power players;
  • Grid connection costs;
  • Silence on certain key issues;
  • Transitional provision; and
  • Next legal documents to be formulated for solar power.

For additional information, please contact Frederick Burke (HCMC) or Chi Lieu Dang (Hanoi).