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ARTICLE · 01 MARCH 2016

Solar Rooftop Project Key Drivers

Duane Morris LLP
Duane Morris LLP
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1. What are the key factors that are driving and restraining the ROOFTOP SOLAR POWER projects market in Vietnam?

VietnamEnergy and Natural Resources
Oliver Massmann
Oliver Massmann
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1. What are the key factors that are driving and restraining the ROOFTOP SOLAR POWER projects market in Vietnam?

In our view, following factors influence investors' decision in investing in Rooftop Solar Power (RSP) projects in Vietnam:

  • Low FIT: the proposed draft law suggests that 'when electricity generated is higher than electricity consumed, the difference shall be purchased by the purchaser at the connection point, with the electricity tariff is 3150 VND/kWh (excluding value added tax, equivalent of 15 USDcents/kWh). Electricity tariff shall be adjusted according to the fluctuations of the exchange rate between VND/USD'.
  • Lack of information on solar power: As a RSP project investment costs are relatively high, investors seek necessary information to support their investment decision. Nevertheless, there is no complete survey or complete source of information on solar energy that investors may access.

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