VIET NAM: Prime Minister's Decision No. 11/2017/QD-TTg of 2017 on the Mechanism for Encouragement of the Development of Solar Power Projects in Vietnam

Meta Data
Title in national language: 
Nội dung toàn văn Decision No. 11/2017/QĐ-TTg
Draft: 
No
Revision of previous policy?: 
No
Effective Start Year: 
2017
Effective End Year: 
2019
Scope: 
National
Document Type: 
Other
Economic Sector: 
Power
Energy Types: 
Renewable, Solar
Issued by: 
Prime Minister of the Socialist Republic of Vietnam
Notes: 
Unofficial translation
Source: 
Viet Nam Energy Partnership Group (EN)
File: 
Decision No.11-2017-QD-TTg (EN)
Decision No.11-2017-QD-TTg (VN)
Overall Summary: 
The Decision No.11/2017/QD-TTg of the Prime Minister dated 11 April 2017 on the mechanism for encouragement of the development of solar power projects in Vietnam regulates mechanisms for encouragement of the development of solar power projects in Vietnam. The Decision contains provisions for funding, investment and incentives, including feed-in tariffs, tax incentives, preferential treatment on land, import duty exemptions.The Decision also sets out the responsibilities of the relevant state agencies and ministries including the Ministry of Industry and Trade, the Ministry of Planning and Investment and the Ministry of Finance.
Renewable Energy
RE prioritization, portfolio standards: 
The Electricity Buyer shall be responsible for purchasing the entire electricity generated from solar power projects; with priority given to deploy full generating capacity of commercially operating solar power. The purchase and selling shall be performed via the power purchase agreement in accordance with the standardized power purchase agreement issued by the Ministry of Industry and Trade for solar power projects. Within thirty (30) days since the Seller has prepared completed required dossier and Power Selling Proposal, the Purchaser and Seller shall enter into the PPA in accordance with regulations. The PPA of solar power projectsis valid for 20 (twenty) years from the date of commercial use. After 20 years, the PPA may be extended or renewed by both parties pursuant to existing regulations.
RE feed-in tariffs: 
The Electricity Buyer shall buy all electricity production generated from the Gridconnected Projects at a FiT of VND 2.086/kWh (USDcents 9.35/kWh, exclusive of VAT) at the Electricity Delivery Points according to exchange rate of VND 22,316/USD announced on 10/04/2017 by the State Bank of Vietnam. The FiT shall be subject to fluctuations of VND-USD exchange rate. This tariff shall be applied only for the Grid-connected Projects with solar cell efficiency of more than 16% or with module of over 15%. The adjustment of FIT subject to fluctuations of VND-USD exchange rate shall be executed according to SPPA issued by MoIT.
Net metering: 
The Roof-mounted Projects shall benefit net-metering mechanism by using two-way electricity meters. In a payment cycle, if the generated electricity is bigger than consumption, it must be transferred to subsequent payment cycle. At the end of the year or when the PPA is terminated, excessive generated electricity shall be sold to the Electricity Buyer at tariff regulated in the clause 1 of this Article. Annually, based on the central rate of VND versus USD quoted by the State Bank of Vietnam on the last quoting date of the previous year, the MoIT shall promulgate purchase price for roof-mounted projects for the following year.
RE capital subsidy, grant, or rebate: 
Solar power projects, transmission lines and transformers connected to the grid must be reduced or exempted from land use charge and rent pursuant to current regulations regarding the projects having investment incentives. Based on the approved planning by the competent authorities, the Provincial People’s Committee must allocate appropriate land for the Investor to carry out their projects. Compensation for land clearance must be subject to land regulations.
Public investment loans or grants: 
Mobilization of investment capital: Any organization or individual participating in the development of solar power projects shall be entitled to mobilize capital from both domestic and foreign organizations and individuals for their solar power projects as per existing regulations.
Pricing
Renewable energy subsidies: 
Corporate income tax (CIT): the exemption and reduction of corporate income tax imposed on solar power projects is similar to the projects in the fields of investment priorities as stipulated in the existing laws on taxes.
Trade
Import taxes and fee exemptions: 
Import duty: all solar projects shall be exempted from import duty for imported goods as fixed assets of the projects. Apply the current regulations of export and import duties for imported goods which serve project production including raw materials, supplies, semifinished products which have not been domestically produced.
Governance
Energy institutional structures: 
The Ministry of Industry and Trade shall be responsible for preparing and submitting the national solar power development planning to the Prime Minister for approval; promulgating, guiding, monitoring and inspecting the implementation of the approved national solar power development planning. People’s Committees of municipalities and provinces (collectively referred to as provincial People’s Committees) where solar potential is considerable are responsible for preparingand submit the provincial solar power development planning to the Minister of Industry and Trade for approval.