Vietnam eyes split self-consumption and export payments in feed-in tariff successor scheme

A rooftop solar system completed in Vietnam using Sungrow equipment. Image: Sungrow.

Vietnam officials have teased new details of a scheme designed to replace the country’s successful solar feed-in tariff (FiT) policy.

Local media reports have cited Pham Nguyen Hung, deputy director of the electricity and renewable energy department of Vietnam’s Ministry of Industry and Trade as having provided new details of the scheme at an online seminar earlier this week.

Vietnam’s previous FiT policy, which incentivised solar installations to the tune of US$0.083c/kWh, was closed to new installations as of 31 December 2020, but not before triggering a boom in installations that saw more than 6.7GW of solar installed in December 2020 alone. Initial plans to replace the so-called FiT2 policy with reduced payments of between US$0.052 – 0.058/kWh did not materialise.

That sharp increase in installations towards the end of 2020 has led to fears of grid congestion in Vietnam, especially around peak generation hours, with further reports of solar curtailment across the country. However the absence of a successor scheme to FiT2 has stymied investment in Vietnam’s solar sector.

At an event organised by PV Tech publisher Solar Media earlier this summer, investors said Vietnam remains a destination of interest for solar finance, but stressed that market saturation was prominent among concerns.

Speaking earlier this week, Hung said a draft decision is being worked upon that would replace the previous payment mechanism with two separate tariffs set at different rates, one for solar to be consumed on site and another payment for power exported to Vietnam’s grid. The self-consumption payment would be for between 70 – 90% of power generated by projects, with the remaining 10 – 30% allocated for export payments.

Rates would be set each year by the Ministry of Industry and Trade, allowing the government to control both payments to asset owners and protect transmission and distribution grids from an influx of solar installations.

More details are expected to be published once other government departments and ministries have had the opportunity to contribute towards the policy’s design.

15 September 2022
Bifacial PV modules will be the dominant solar PV technology globally within one or two years; in the utility-scale sector, their market share is already above 70%. This webinar will provide a clear view on the successful implementation of bifacial technology, maximizing system performance and minimising LCoE.
4 October 2022
Solar & Storage Finance USA, the only event that connects developers to capital and capital to solar and storage projects, will be back in November 2022.

Read Next

August 3, 2022
Global investment in renewable energy reached a record half-year figure of US$226 billion in H1 2022, driven by soaring demand for clean energy technologies amid the ongoing energy and climate crisis, according to a BloombergNEF (BNEF) report.
July 29, 2022
Thin-film module manufacturer First Solar will consider expanding its production footprint in the US if proposed legislation that includes manufacturing credits becomes law, the company’s CEO has said.
July 28, 2022
Manufacturing support for solar components and clean energy tax credits are included in a proposed US budget reconciliation bill from Senate Democrats that proponents have said features the biggest climate and renewables investment in the country’s history.
July 26, 2022
UK-based energy group Octopus Energy has raised US$550 million to invest in renewables-enabling technologies and solutions.
PV Tech Premium
July 22, 2022
Analysts have flagged concerns over a lack of clarity from Indonesia’s government related to power exports, potentially spelling trouble for project developers looking to transmit renewables generation from the country to neighbouring Singapore.
July 14, 2022
The Mississippi Public Service Commission has voted to adopt an updated set of net metering and interconnection rules in a move that could “significantly” expand rooftop solar in the state.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event