On 06th April, 2020, The Prime Minister issued Decision No 13/2020/QD-TTg on mechanism for encouragement of development of solar power in Vietnam. The decision specifically regulated two projects: Grid-connected solar power and rooftop solar power system.

Accordingly, use of power purchase agreement for grid-connected solar power energy projects shall be compulsory in electricity trading between the Seller and the Buyer which is the EVN or member entity authorized by the EVN. Period of a power purchase agreement for grid-connected solar power projects shall be 20 years from the commercial operation date. After the period mentioned above, contract extension or signing of new contracts shall comply with regulations and law at the time of extending or signing the contracts anew.

Subject to Electricity price of grid-connected solar power projects, Grid-connected solar power projects prioritized for investment by competent authorities before November 23, 2019 and of which commercial operation date of project or part of project lies within July 1, 2019 to December 31, 2020 inclusively may apply electricity purchase tariff for grid-connected solar power. With respect to Ninh Thuan Province, purchase price of electricity for grid-connected solar power projects included in electricity development planning of all levels which commercial operation date precedes January 1, 2021 with total capacity no more than 2,000 MW is VND 2,086/kWh (VAT excluded).

About rooftop solar power system, Buyer which is EVN or authorized member entity thereof must conform to power purchase agreement form. Power purchase agreement in case of rooftop solar power systems shall remain for a maximum of 20 years from the date of initial electricity generation. After the period mentioned above, extending or signing new contracts shall comply with applicable regulations and law.

The price regulated in electricity purchase tariff for rooftop solar power system is applied to rooftop solar power systems which power generate and electricity meter reading confirmation dates range from July 1, 2019 to December 31, 2020 and shall be applied for 20 years from the initial date of electricity generation.

The Decision may take effect from May 22, 2020.

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