VIETNAM AMENDS REGULATIONS ENCOURAGING SOLAR POWER DEVELOPMENT

22/02/2019, 09:52 AM

The Prime Minister has just promulgated Decision No. 02/2019/QD-TTg (“Decision 02”) amending, supplementing some articles of Decision No. 11/2017/QD-TTg dated 11 April 2017 of the Prime Minister (“Decision 11”) on mechanism on encouragement of solar power development of Vietnam. Pursuant to Decision 02, some policies relating to solar power project are amended as follows:

1. Amending mechanism of power purchase to rooftop solar power projects

Changing from net-metering mechanism to the mechanism that separates the direction of delivery of electricity from the direction of receipt of electricity:

  • The project owner shall be liable for the amount of electrical energy received from power grids with price in accordance with existing regulations; and
  • The electricity buyer shall be liable for the amount of electrical energy transmitted to power grids from rooftop solar power projects with price in accordance with the power purchase contract between parties.

Thus, now the parties no longer have to conduct net-metering of two-way electricity meters and no longer have to settle the amount at the end of year or at the termination date of the power purchase contract.

2. Amending responsibilities of the Ministry of Industry and Trade

Decision 02 amends responsibilities of the Ministry of Industry and Trade (“MOIT”) relating to solar power projects as follows:

  • Annulling the responsibility for promulgating power purchase price of the MOIT to rooftop solar power projects. From 08 January 2019, power purchase price of rooftop solar power projects will be directly determined on the basis of the official exchange rate of VND versus USD, quoted by the State Bank of Vietnam on the date of release of the last exchange rate in the previous year;
  • Prescribing that the MOIT shall be responsible for providing instructions for the computation of payment of costs of electricity generated by solar power projects, depending on the fluctuation of the exchange rate of VND versus USD;
  • Supplementing the responsibility for promulgating regulations on connection and annulling the responsibility for providing the instruction for the calculation of net-metering mechanism of the MOIT, applied to rooftop solar power projects;
  • Annuling the the responsibility for supplementing regulations on exemption of taxes and fees incurred by solar power rooftop projects of the MOIT (the nameplate capacity of which does not exceed 50kW).
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