The Ministry of Industry and Trade has told the authorities of cities and provinces and Vietnam Electricity Group (EVN) to stop proposing solar power projects under the feed-in tariff (FIT) program until a new decision is issued.
Earlier, Announcement 402 noted that except for projects that had signed power purchase agreements and were under construction for operation in 2020, the remainder and new projects cannot apply for FITs. Instead, they will be carried out through public tenders to slash power purchase prices.
The ministry is collaborating with the relevant ministries and departments to complete a draft on preferential policies for the development of solar power projects in Vietnam, resulting in the order to suspend solar power project proposals, under the FIT program.
After the prime minister issued Decision 11/2017, offering incentives for solar power projects, as many as 135 projects with a combined capacity of 9,935 megawatts (MW) were added to the national power scheme, according to the ministry. Several solar farms with a total capacity of roughly 4,500 MW have been connected to the national grid to date.
Statistics from EVN indicate that since July 1, only two solar power projects have met the requirements to obtain a commercial operations date: the Hacom Solar and Solar Park 01 plants.
Many investors attributed the limited number of solar power plants being put into service to the absence of new purchase prices for solar power and the development of power transmission lines not matching solar power projects.
Solar power output currently accounts for 2% of the country’s total power production, as of early this year, Motthegioi news site reported. As a result, the number of solar power projects is forecast to rise in the coming years. SGT
The Global Infrastructure Facility (GIF)’s Governing Council has approved 1.5 million USD in funding for the World Bank (WB) and Vietnam to carry out the Solar Pilot Auction Programme, the WB said on December 18.
A draft document on solar power development will be filed to the Prime Minister for approval on December 15, local media reported.