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Despite bankability concerns inherent in power purchase agreements, investing in renewable power is a bright spot in Vietnam as developers rush to take advantage of the current feed-in tariff.
With Vietnam struggling alongside the rest of the world in attempting to overcome the coronavirus pandemic, the government has taken solutions to fuel the energy sector.
Vaibhav Saxena, foreign lawyer at Vietnam International Law Firm, discusses how Decision No.13/2020/QD-TTg will impact the Vietnamese solar power market.
The feed-in tariff (FiT) for biomass power projects will range from VND1,634 to VND1,968 per kWh, exclusive of value-added tax, setting the stage for more investment in biomass electricity.
Positive feed-in tariff incentives have proven a most effective policy tool to induce a rapid growth in renewables, and Vietnam is a prime example of this.