Share on LinkedInShare on LinkedIn

ARTICLE · 23 JANUARY 2018

Vietnam's New Solar PPA: Strong Developer Interest Despite Bankability Concerns

Jones Day
Jones Day
Contributor
Jones Day

Jones Day

Jones Day is a global law firm with more than 2,400 lawyers in 40 offices across five continents....

View firm profile
Explore more from Jones Day

Vietnam's draft model power purchase agreement ("Model PPA") for solar power projects issued in April 2017 departed from international market practice and fell short on bankability.

VietnamEnergy and Natural Resources
Karthik Kumar
Karthik Kumar
Sylvia Koh
Sylvia Koh
Author LinkedIn connections

The Situation: Vietnam's draft model power purchase agreement ("Model PPA") for solar power projects issued in April 2017 departed from international market practice and fell short on bankability.

The Action: Vietnam has now issued a final set of Model PPAs, which ignores key market recommendations and continues to depart from international market practice. However, the feed-in tariff remains attractive and offers investors the prospect of a higher return on investment.

Looking Ahead: Developer interest remains strong despite bankability concerns regarding the Model PPAs. This is because Vietnam offers an attractive feed-in tariff system and an abundance of land that is ideally suited for solar power generation.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Recalibrating Vietnam’s Petroleum Regime: Key Reforms Under The New Petroleum Law

Vietnam's newly adopted Petroleum Law introduces significant regulatory reforms aimed at streamlining approval processes, enhancing contractual flexibility, and establishing frameworks for carbon capture and offshore energy development. The legislation transfers substantial decision-making authority from ministerial levels to Petrovietnam while introducing targeted incentives for marginal fields and enhanced recovery operations.
VietnamEnergy and Natural Resources
VILAF
VILAF
Article

Vietnam Opens The Door To A New Wave Of Energy Investment: Decree 272 Creates Major Opportunities For Foreign Investors

Vietnam's newly promulgated Decree 272/2026/ND-CP establishes a transparent regulatory framework for international energy investment, introducing accelerated approval timelines, reduced administrative burdens, and clear financial requirements for offshore wind and power grid infrastructure projects. Could this decree finally provide the predictable investment environment that foreign developers and financial institutions have been seeking in one of Asia's fastest-growing energy markets?
VietnamEnergy and Natural Resources
Duane Morris LLP
Duane Morris LLP
Article

VIETNAM BIOMASS POWER 2026 – THE RACE FOR BANKABLE PPAs _Why Circular 12 Changes The Game For Foreign Investors – And Why Knowing The Institutions And People Behind The PPA Can Determine Whether A Project Reaches Financial Close

Vietnam's biomass power sector is undergoing a fundamental transformation as the country moves toward a sophisticated electricity market where project-specific pricing, negotiated Power Purchase Agreements, and bankability increasingly determine success. For foreign investors, understanding Circular 12's negotiable PPA framework and knowing the specific Vietnamese institutions and decision-makers controlling each approval process can mean the difference between a project reaching financial close or stalling
VietnamEnergy and Natural Resources
Duane Morris LLP
Duane Morris LLP
Article

Vietnam’s Energy Opportunity: From Market Potential To Investable Projects

Vietnam's energy sector is undergoing unprecedented expansion, with revised Power Development Plan VIII targeting USD 134.7 billion in investment through 2030. International investors face a critical strategic question: how to enter this market in a commercially viable, legally secure manner that produces investable projects rather than simply establishing a presence and hoping for opportunities.
VietnamEnergy and Natural Resources
Duane Morris LLP
Duane Morris LLP
Article

Ninth Circuit Vacates CFAA Injunction Against Perplexity's Comet AI Agent

The Ninth Circuit Court of Appeals vacated a preliminary injunction against Perplexity AI, determining that when an AI agent acts at a user's direction, it is the user—not the AI company—who "accesses" computer systems under federal and California computer fraud statutes. This landmark appellate decision addresses how existing computer-access laws apply to agentic artificial intelligence and has significant implications...
United StatesMedia, Telecoms, IT, Entertainment
Jones Day
Jones Day
Article

EU Commission Pushes for Transposition of the EmpCo Directive on Environmental Claims

The European Commission has initiated infringement procedures against 20 EU Member States for failing to transpose the EmpCo Directive by the March 27, 2026 deadline. This directive aims to combat greenwashing by requiring substantiation of environmental claims and third-party certification for sustainability labels, with full implementation expected by September 27, 2026.
European UnionConsumer Protection
Jones Day
Jones Day
Article

Commission Proposes EU Public Procurement Act

The European Commission has proposed replacing the EU's three core procurement directives with a single, directly applicable Regulation that would fundamentally reshape how companies compete for public contracts across Member States. The reform introduces mandatory quality criteria thresholds, embeds ESG considerations as evaluation factors, and establishes new security and European-preference provisions that could restrict participation based on ownership, supply chain exposure, and strategic dependencies.
European UnionGovernment, Public Sector
Jones Day
Jones Day
Article

Federal Court Holds New York’s Climate Superfund Law Preempted By CAA

A federal court has struck down New York's Climate Change Superfund Act, which sought to recover $75 billion from fossil fuel companies based on historical emissions. The ruling found the Act preempted by the Clean Air Act, marking the first judicial decision on state climate superfund legislation and establishing that EPA's rescission of the endangerment finding does not alter preemption analysis.
United StatesEnvironment
Jones Day
Jones Day
Article

Amendment To The General Rules Under Mexico’s Anti-Money Laundering Law (LFPIORPI): Key Regulatory Changes Under Acuerdo 115/2026

Mexico's comprehensive anti-money laundering framework has undergone a sweeping transformation through Acuerdo 115/2026, introducing mandatory risk-based methodologies, enhanced client due diligence protocols, and automated monitoring requirements. With implementation deadlines beginning March 1, 2027, obligated parties conducting vulnerable activities face compressed timelines to overhaul their compliance infrastructure while navigating heightened enforcement risks and stricter beneficial ownership thresho
MexicoGovernment, Public Sector
Jones Day
Jones Day
Article

China's Supreme Court Issues Landmark Judicial Rules On AI: Implications For Product Liability, IP, Data, And Generative AI

China's Supreme People's Court has issued comprehensive judicial rules addressing artificial intelligence disputes, establishing frameworks for product liability, intellectual property rights, and data protection. These landmark opinions provide critical guidance for global companies navigating AI-related legal risks in China's evolving regulatory landscape.
ChinaIntellectual Property
Jones Day
Jones Day
Article

New EU Guidelines On Abuse Of Dominance: Recalibrated Framework, With Ample Room For Aggressive Enforcement

The European Commission has adopted final Guidelines on exclusionary abuses of dominance under Article 102 TFEU, introducing a "workable effects approach" that narrows presumptions while expanding guidance on objective justifications and recognizing sustainability benefits as valid efficiencies for the first time. These Guidelines replace the 2008 Enforcement Priorities Guidance and are expected to significantly impact enforcement practices across EU Member States and beyond, particularly for digital market
European UnionAntitrust/Competition Law
Jones Day
Jones Day