VIET NAM: Decision of the Prime Minister No. 37/2011/QD-TTg of 2011 on Mechanisms for Support and Development of Wind Power Projects in Vietnam

Meta Data
Draft: 
No
Revision of previous policy?: 
No
Draft Year: 
2011
Effective Start Year: 
2011
Scope: 
National
Document Type: 
Other
Economic Sector: 
Power
Energy Types: 
Power, Renewable, Wind
Issued by: 
Prime Minister of the Socialist Republic of Vietnam
Notes: 
Translation of Vinh Khang Law Firm
Source: 
Wind Works
File: 
Decision No. 37/2011/QD-TTg of 2011
Overall Summary: 
The Decision regulates mechanisms for support and development of wind power projects in Vietnam. Objects expressed by this Decision are organizations participating in power operations in connection with development of wind power projects in Vietnam.
Renewable Energy
RE action plans: 
The plan for developing national and local wind powers will be updated once for a period of 2011 – 2020 and vision to 2030 which will be amended and modified when necessary. From subsequent planning stages, the plan for developing the wind power will be incorporated into provincial and national electricity development plans.
RE feed-in tariffs: 
The Buyer is obliged to purchase entire electricity output from the wind power projects at delivery price at 1,614 VND/kWh (excluding VAT, equivalent to 7.8 UScents/kWh). Such purchase price is adjustable by fluctuations in VND/USD exchange rate.
RE capital subsidy, grant, or rebate: 
The wind power projects will entitle to incentives in accordance with current regulations about the State’s investment credit.---The wind power projects, transmission lines and transformers connected to the national power grid will be exempted from, reduced on land use fee, rent in accordance with legal regulations being in force for the projects in investment preference sectors.---Through Vietnam Environment Protection Fund, the State will give subsidy of 207 VND/kWh (equivalent to 1.0 UScents/kWh) the buyer that has entirely purchased electricity output from wind power projects.
RE reductions in taxes: 
Corporate income tax: Rate of corporate income tax, exemption and reduction of corporate income tax to the wind power projects will be applied like the projects in investment preference sectors as regulated in the Investment Law, the Law on Corporate Income Tax and directives thereof.
Environment
Decarbonization strategy: 
The wind power projects will apply clean development mechanism in compliance with the State’s current regulations.
Carbon markets: 
The wind power projects will apply clean development mechanism in compliance with the State’s current regulations.
Land use change for energy production purposes: 
According to the plans approved by competent authorities, Provincial People’s Committees are liable for delivering lands to the Investors for developing the wind power projects. Site compensation, support, clearance will be in compliance with legal regulations being in force for the lands.
Pricing
Renewable energy subsidies: 
Corporate income tax: Rate of corporate income tax, exemption and reduction of corporate income tax to the wind power projects will be applied like the projects in investment preference sectors as regulated in the Investment Law, the Law on Corporate Income Tax and directives thereof.---Through Vietnam Environment Protection Fund, the State will give subsidy of 207 VND/kWh (equivalent to 1.0 UScents/kWh) the buyer that has entirely purchased electricity output from wind power projects.
Energy pricing: 
The Buyer is obliged to purchase entire electricity output from the wind power projects at delivery price at 1,614 VND/kWh (excluding VAT, equivalent to 7.8 UScents/kWh). Such purchase price is adjustable by fluctuations in VND/USD exchange rate.---
Energy Supply and Infrastructure
Cooperation in connectivity: 
Connecting the wind power projects to the national power grid must conform to the approved electricity development plan.
Trade
Import taxes and fee exemptions: 
Import duties: The wind power projects are exempted from import duties for any goods to be imported for creating fixed assets of the projects, as raw materials, semi-products which have not been manufactured in the country for the projects’ production [...].
Investment
Financial incentives for energy infrastructure: 
Corporate income tax: Rate of corporate income tax, exemption and reduction of corporate income tax to the wind power projects will be applied like the projects in investment preference sectors as regulated in the Investment Law, the Law on Corporate Income Tax and directives thereof.
Independent power producers: 
Sale and purchase of the electricity will be in form of electricity sale and purchase contract applied for the grid connected wind power projects issued by Ministry of Industry and Trade. [...].
Governance
Energy management principles: 
Investment and construction of the wind power projects must be in compliance with the wind power and electricity development plans to be approved by competent authorities.
National policy structure: 
The plan for developing national and local wind powers will be updated once for a period of 2011 – 2020 and vision to 2030 which will be amended and modified when necessary. From subsequent planning stages, the plan for developing the wind power will be incorporated into provincial and national electricity development plans.