A new proposed tariff structure for solar energy projects in
Vietnam sets out different rates for different irradiation regions
and gives long-awaited indication of direction for the market after
30 June 2019. On 29 January 2019, the Ministry of Industry and
Trade ("MOIT") released parts of a draft
decision to update the country's current feed in tariff (FiT)
structure which is only valid until 30 June 2019 (the
"Draft").
The Draft is of course still just that, a draft, but forecasts a
clear change in strategy with respect to FiTs.
Under the current FiT policy (regulated by Decision 11 and
Decision 16) there is only one FiT for all projects regardless of
location. That is an internationally respectable FiT of 9.35 US
cents per kWh for all on-grid solar power projects that achieve
commercial operation date ("COD") prior
to 30 June 2019 (with the exception of some projects in Ninh Thuan
province which have a later COD timeline).
