Latest News about Fit
The Feed in Tariff (FIT) price of VND2,000 per kwh will expire in seven months, but the price for the next period has not been fixed yet.
Many wind power projects are being developed at a time when the transmission line has become overloaded. As a result, there could be difficulty selling power.
In Huong Hoa, called the "wind-power metropolis" of Vietnam, one sao (1 sao = 360 square meters) of hilly land is priced at VND4 billion.
The Feed-in-Tariff (FIT) of over VND2,000 per kwh, or 9.35 cent, has encouraged many investors to pour money into solar power. However, they have fallen into a dilemma because of unforeseeable problems.
The proportion of solar and wind power projects in the entire national electricity system is expected to increase, requiring thorough preparation because of the instability of these power sources, experts have said.
Gas-fired thermal power is catching the attention of foreign and domestic investors, now that Vietnam plans to stop new coal-fired power projects, according to the eighth national power development plan.
At present, the cost of solar power panels has cooled down, so shortly, the MoIT would suggest the purchasing price of solar power without using feed-in tariffs (FITs).
Over 100,000 rooftop solar power works with total capacity of 9,300 MW were connected to the national grid by December 31, 2020.
Energy service companies (ESCOs) are facing numerous risks since the regulatory framework for their sector is both incomplete and patchy, according to industry insiders.
The Ministry of Industry and Trade (MOIT) has proposed continuing the FIT (feed in tariff) for wind power, but lowering the tariff by 20 percent, causing concern among wind power developers.
Following a proposal by 10 provinces, the Ministry of Investment and Trade (MOIT) wants to extend the deadline for FIT (Feed in Tariff) application because many wind power projects cannot become operational prior to the given date.
According to the Electricity of Vietnam (EVN), the total capacity of rooftop solar power projects in southern provinces now makes up 60 percent of its total solar power capacity nationwide.
Tens of solar power projects are awaiting to be added to the list of power generation projects to be developed. Meanwhile, ministries are still discussing the new pricing mechanism after the preferential FIT expires.
APV, or Agriculture Photovoltaic system, is becoming increasingly popular around the world. It could be a feasible model in Vietnam if the government sets a reasonable legal framework to develop it.
As of August 23, 45,299 rooftop solar power projects had become operational with total capacity of 1,029 MWp, according to the Electricidty of Vietnam (EVN).
Covid-19 and the slow implementation of power transmission projects may make it impossible for solar power projects to connect to the national grid by the end of the year.
As wind and solar power project developers now can enjoy a high FIT (feed in tariff) price, investors are registering more projects to resell for profit.
A solution for the power industry has been put into discussion: selling entire power plants to investors after they are put into operation.