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

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
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.

6 October 2021
The future is bright for a new era of US solar and storage, and the 8th annual Solar & Storage Finance Summit will provide opportunities to discuss solutions to the industry’s challenges and provide a networking platform designed to bring together the top minds in the industry to do business. With a mix of high-level, informative presentations and panels, a stellar cast of speakers and audience members with deal-making capacity, the 2021 edition of the event will be a sell-out success.

Read Next

September 16, 2021
Energy engineering firm Babcock & Wilcox is to enter the US solar market through the acquisition of a majority stake in Illinois-based solar contractor Fosler Construction.
September 14, 2021
Polish renewables developer PAD-RES is to be acquired by a joint venture established by real estate investor Kajima and private equity firm Griffin Real Estate.
PV Tech Premium
September 13, 2021
Following the release of the US Department’s Solar Futures Study, Liam Stoker assesses the downstream and upstream trends that must be realised for US solar to fulfil its potential.
September 13, 2021
The US House of Representatives has finally unveiled proposals which would extend the Solar Investment Tax Credit (ITC) for 10 years at 30%, but only for projects meeting certain labour conditions.
September 10, 2021
Renewables investor Magnora has increased its stake in Helios Nordic Energy as the Swedish solar developer looks to add 1GW to its pipeline by the end of next year.
September 9, 2021
A letter co-signed by more than 750 US organisations has called on US Congress to push through policies to significantly ramp up renewables deployment in the country.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
Solar Media Events
December 1, 2021