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PRIME MINISTER
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SOCIALIST
REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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No. 13/2020/QD-TTg
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Hanoi, April 6,
2020
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DECISION
INCENTIVES
FOR DEVELOPMENT OF SOLAR ENERGY IN VIETNAM
Pursuant to Law on Governmental Organization
dated June 19, 2015;
Pursuant to Electricity Law dated December 3,
2004; Law on Amendments to Electricity Law dated November 20, 2012;
Pursuant to Law on Investment dated November 26,
2014; Law on Amendments to Law on Investment dated November 22, 2016;
Pursuant to Law on Construction dated June 18,
2014;
In implementation of Resolution No. 115/NQ-CP
dated August 31, 2018 of Government on implementing specific policies to assist
Ninh Thuan Province in socio-economic development and maintenance of
manufacture and livelihood stability of the people during 2018 - 2023;
At the request of Minister of Industry and
Trade;
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Chapter I
GENERAL PROVISIONS
Article 1. Scope
This Decision prescribes incentives for development
in Vietnam.
Article 2. Regulated entities
This Decision applies to organizations and
individuals participating in developing solar energy in Vietnam and other
relevant organizations and individuals.
Article 3. Interpretation
In this Decision, terms below are construed as
follows:
1. “Buyer” refers to Vietnam Electricity
Group (EVN), member entities authorized by the EVN, other organizations and
individuals that buy electricity from the Seller or other organizations
assigned with rights and obligations of organizations above as per the law.
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3. “Electricity distributor or retailer not
affiliated to EVN” refers to an entity that is not affiliated to EVN
licensed for operation in distributing, retailing and buying electricity from
distributors to sell for customers.
4. “Solar energy” refers to electricity
produced by solar panels using the method of converting light energy into
electrical energy.
5. “Rooftop solar system” refers solar
system in which solar panels are installed on the roof of the construction with
no more than 1 MW in power and directly or indirectly connected to power grid
with up to 35kV of the Buyers.
6. “Grid-connected solar power project”
refers to the project in which solar electricity is connected to national grid,
except for regulations specified in Clause 5 of this Article.
7. “Floating solar energy project” refers a
grid-connected solar power project with solar panels installed on constructions
floating on water surface.
8. “Terrestrial solar energy project” refers
to a grid-connected solar power project other than projects specified in Clause
7 of this Article.
9. “Commercial operation date of the whole or part
of grid-connected solar power system” refers to the date on which the whole or
part of solar power structures is ready to sell electricity to the Buyer and
must satisfy following requirements:
a) Completed initial tests with respect to the
whole or part of the construction as per the law;
b) Licensed by competent authorities to operate in
electricity generation;
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Chapter II
GRID-CONNECTED SOLAR
POWER
Article 4. Responsibilities of
the Buyer in grid-connected solar power projects
1. The Buyer is responsible for purchasing the
entire electricity produced from solar power projects connected to national
grid satisfactory to regulations on operating electricity systems and
electricity technical regulations and standards; prioritizing balancing to
fully utilize power generation capacity of solar power projects.
2. Use of power purchase agreement from for
grid-connected solar power energy projects shall be compulsory in electricity
sale between the Seller and the Buyer which is the EVN or member entity
authorized by the EVN.
3. 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.
Article 5. Electricity price
for grid-connected solar power projects
1. Grid-connected solar power projects prioritized
for investment by competent authorities before November 23, 2019 whose
commercial operation date lies within July 1, 2019 to December 31, 2020
inclusively may apply electricity purchase price schedule for grid-connected
solar power under Annex of this Decision.
2. Electricity purchase price under the electricity
purchase price schedule does not include VAT and shall be adjusted according to
the central rate of VND to USD dollar publicized by the State Bank of Vietnam
on the date the Seller produces invoices. The electricity purchase price shall
be applied for 20 years from the commercial operation date.
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4. Purchase price of electricity from grid-connected
solar power projects that fail to satisfy requirements specified in Clauses 1
and 3 of this Article shall be determined based on competition.
5. Electricity purchase prices under Clauses 1 and
3 of this Article shall be applied to projects in which capacity of solar cells
exceed 16% or module exceeds 15%.
6. Purchase price of electricity from
grid-connected solar power projects specified in Clauses 1 and 3 of this
Article shall be accounted and fully provided in input figures of annual electricity
sale and retail price scheme of the EVN.
Article 6. Development of
grid-connected solar power projects
1. Primary equipment of grid-connected solar power
projects must satisfy Vietnamese technical standards and regulations or
international standards (IEC) or similar standards. Electricity quality of
grid-connected solar power projects must satisfy requirements regarding
voltage, frequency and requirements in terms of operating national electricity
system according to applicable regulations and law.
2. Investment for construction of grid-connected
solar power projects shall be conducted according to regulations and law on
investment, construction, electricity safety, land, fire safety, environmental
protection and other relevant law provisions.
3. Preferential treatment regarding tax, land use
and water surface use with respect to grid-connected solar power projects shall
comply with relevant applicable regulations and law.
Article 7. Connecting
grid-connected solar power projects to electric systems
1. The Seller shall be responsible for investing,
installing, operating and maintaining electricity measuring instruments, power
lines and transformers (if any) from power plants of the Seller to the location
where the power is connected to power grid of the Buyer; organizing
accrediting, calibrating and testing electricity measuring instruments
according to regulations and law on measurement.
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Chapter III
ROOFTOP SOLAR POWER
SYSTEM
Article 8. Electricity purchase
price power purchase agreement form
1. Rooftop solar power systems may sell the entire
or part of electricity produced to the Buyer which is the EVN or other
organizations and individuals in case of not using power grids of EVN.
2. The EVN or authorized member entities shall pay
for the electricity transmitted to the national grid from rooftop solar power
systems according to electricity purchase price under the Annex attached to
this Decision. The price does not include VAT and shall be adjusted according
to conversion rate of VND to USD (translates to US cents/kWh), conversion rate
to be applied shall be central conversion rate of the VND to USD publicized by
State Bank of Vietnam at the end of the previous year to calculate electricity
bill for the following year. Parties are responsible for complying with
regulations and law on tax and charges.
3. In case the Buyer is not the EVN or authorized
member entity thereof, electricity purchase price and power purchase agreement
shall be agreed upon by parties satisfactory to applicable regulations and law.
4. Electricity purchase price under Clause 2 of
this Article is applied to rooftop solar power systems whose 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. Purchase price for electricity of rooftop solar power
systems specified in Clause 2 of this Article shall be accounted and fully
provided in the inputs figures of annual electricity sale and retail price
scheme of the EVN. Invoices shall be made separately for distributed
electricity and received electricity.
5. 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.
Article 9. Development of
rooftop solar power systems, electricity connection and measurement
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2. The EVN shall invest, install and maintain
electricity measuring instruments of rooftop solar power systems signing power
purchase agreements with the EVN or authorized member entity thereof.
3. Rooftop solar power systems must have capacity
of solar cells larger than 16% or module larger than 15%.
4. Organizations and individuals investing for
installation of rooftop solar power systems must fulfill electricity safety,
construction safety, environment and fire safety requirements according
applicable regulations and law.
Chapter IV
IMPLEMENTATION
Article 10. Responsibilities
of regulatory agencies
1. Ministry of Industry and Trade
a) Take charge and cooperate with People’s
Committee of Ninh Thuan Province and EVN in monitoring grid-connected solar
power systems whose commercial operation date satisfies preferential
electricity purchase price under Clause 3 Article 5 of this Article and
conforms to Resolution No. 115/NQ-CP dated August 31, 2018 of Government on
implementation of specific policies to assist Ninh Thuan Province in
socio-economic development and maintenance of manufacture and livelihood
stability during 2018 – 2023;
b) Organize, guide and cooperate with People’s
Committees of provinces and central-affiliated cities in examining and
monitoring implementation of this Decision;
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d) Promulgate regulations on measurement and record
of produced electricity and payment with respect to rooftop solar power systems
involving electricity distributors and retailers not affiliated to the EVN;
dd) Cooperate with ministries and local governments
in mobilizing resources to promote rooftop solar power programs;
e) Conduct research to develop bidding mechanism
regarding solar power projects and implementation progress and report to Prime
Minister for approval for nationwide implementation.
2. People’s Committees of provinces and
central-affiliated cities
a) Cooperate and assist investors in terms of
compensation, land clearance, infrastructure and personnel to invest, implement
and develop solar power projects on a provincial scale;
b) Monitor and examine implementation of local
solar power projects within their competence;
c) Perform state management regarding activities
related to solar power on a provincial scale according to applicable
regulations and law.
d) Report to Ministry of Industry and Trade about
application and investment for development of solar power on a provincial
scale.
Article 11. Vietnam Electricity
Group
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2. Conduct research to invest in energy saving
solutions to ensure functional operation of electric systems upon integrating
renewable energy.
3. Develop information system to manage
grid-connected solar power and rooftop solar power development on a nationwide
scale.
4. Examine progress of electricity projects which
are to relieve capacity of grid-connected solar power projects and rooftop
solar power systems, do not cause the national grid to overload.
5. On a yearly basis, report to Ministry of
Industry and Trade on connection of solar power, total capacity of electricity
purchased from grid-connected solar power projects and rooftop solar power
systems.
Article 12. Entry into force
1. This Decision comes into effect from May 22, 2020.
2. Ministers, heads of ministerial agencies, heads
of governmental agencies, Chairpersons of People’s Committees of provinces and
central-affiliated cities; heads of agencies and entities related to
development of solar power projects in Vietnam are responsible for
implementation of this Decision./.
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ANNEX
SOLAR POWER PURCHASE PRICE SCHEDULE
(Attached to Decision No. 13/2020/QD-TTg dated April 6, 2020 of Prime
Minister)
No.
Solar power
technology
Price
VND/kWh
Equivalent in
US cent/kWh
1
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1,783
7.69
2
Terrestrial solar energy projects
1,644
7.09
3
Rooftop solar power systems
1,943
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Note: Conversion rate shall be the central
conversion rate of VND to USD publicized by the State Bank of Vietnam in March
10, 2020.