Vietnam: Update on Rooftop Solar Power Policy (As of 18 January 2021)

The feed-in-tariffs under Decision No.13/2020/QD-TTg on encouraging mechanisms for solar power development in Vietnam (“Decision 13”) officially expired since 31 December 2020. Accordingly, EVN has announced its power companies stopped buying rooftop solar power after 31 December 2020 to wait for further guidance from the Government. This suspension not only affects rooftop solar power projects reaching commercial operation date in 2021 (“RSP Projects”) and planning to sell their produced electricity to EVN but also puts a hold on granting licenses to new RSP Projects until further official guidance (pursuant to our verbal consultations with various local departments of planning and investment across Vietnam). According to a Ministry of Industry and Trade (MOIT) official, a new decision replacing Decision 13 would be released in the first quarter of 2021. While the nationwide solar auction is intended to commence in June 2021, it is currently uncertain as to which pricing mechanism, FiT or auction, will apply to RSP Projects in 2021.

We will keep you updated on this once any relevant new legislation is available.

The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.

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