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ARTICLE · 29 MARCH 2019

Solar Power Sector – New Model PPA For Rooftop Solar Power Projects

Duane Morris LLP
Duane Morris LLP
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On 8 January 2019, the Prime Minister issued Decision 02 to amend certain articles of Decision 11 on mechanism for encouragement of development of solar power in Vietnam.

United StatesEnergy and Natural Resources

On 8 January 2019, the Prime Minister issued Decision 02 to amend certain articles of Decision 11 on mechanism for encouragement of development of solar power in Vietnam. Decision 02 promulgates new payment scheme to replace the troublesome net-metering structure of the rooftop solar power projects under Decision 11. However, Decision 02 was alleged to be a lackluster as it did not provide any model PPA for rooftop solar power projects and it only applies to limited rooftop solar power projects which having commercial operation date – COD, together with electricity meter readings confirmation, prior to 1 July 2019. It is worth noting that Circular 16 required a rooftop solar power generator to enter into a model PPA (in the form attached to Circular 16) with EVN or its authorized subsidiary. However, such model PPA and the net-metering under Circular 16 were not supported by EVN due to its payment complexity nature. In fact, following Decision 02, Ministry of Industry

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