Decision No. 13/2020/QD-TTg issued by the Prime Minister of Vietnam on encouraging mechanisms for solar power development in Vietnam, dated 6 April 2020 (“Decision 13”) prescribed feed-in tariffs which expired on 31 December 2020. Accordingly, Electricity Vietnam (“EVN”) has announced its power companies have stopped buying electricity from rooftop solar power projects (“RTS Projects”) with a total capacity not exceeding 1 MW which achieve commercial operation after 31 December 2020 (the “Moratorium”). During the Moratorium the granting of licenses, including the establishment licenses to develop a new RTS Project company, is expected to be delayed. We understand the Moratorium is intended to last until a new decision related to RTS Projects is issued, tentatively by the end of March 2021.
Please also note that developing a standalone RTS Project exceeding 1 MW with intended generation sold to EVN has not been permissible since the 31 August 2020 expiry of Circular 16/2017/TT-BCT of the Ministry of Industry and Trade on the development of solar power projects and the power purchase agreement form applicable to solar power projects, dated 12 September 2017 (“Circular 16”). Circular 16 prescribed feed-in tariffs applicable to all RTS Projects regardless of their capacities while the subsequent regulations replacing Circular 16 only prescribed feed-in tariffs for RTS Projects not exceeding 1 MW.
We will keep you updated on this once any relevant new legislation is available.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
Senior Legal Adviser, Deputy Head of Regional Energy Mining & Infrastructure Practice