return icon Vietnamnet.vn

Transferring solar projects to foreign investors 'normal': MoIT

The Ministry of Industry and Trade (MoIT) has said that transferring all or part of a solar power project was normal according to market rules and the Investment Law.

 

{keywords}

As of May 11, Viet Nam had 92 solar power projects in commercial operation. — Photo baodautu.vn

 

The MoIT was responding after concerns were raised that many solar power projects initially assigned to Vietnamese investors were being transferred to foreign investors.

Hoang Tien Dung, director of the MoIT’s Electricity and Renewable Energy Authority, said: “The existing regulations allow the transfer of projects to eligible foreign investors. Transferring projects and changing shareholders need the approval of the Ministry of Planning and Investment or the Department of Planning and Investment depending on project scale."

As of May 11, according to the Department of Electricity and Renewable Energy, Viet Nam had 92 solar power projects and 10 wind power projects with a total capacity of nearly 6,000 MW in commercial operation.

A number of them have been transferred partially or wholly to foreign investors by establishing joint ventures or share sales, including investors from Thailand, the Philippines, China, Singapore and Saudi Arabia.

Coal and gas power projects are invested under the business-operation-transfer (BOT) model with a Government guarantee during the projects' construction. However, at present, solar and wind power projects do not have Government guarantees.

"In the current context, domestic and foreign private investors developing power projects without a Government guarantee is a positive point attracting investment to the electricity industry," the MoIT representative said.

In addition, foreign investors often had more experience and ability in investing and managing plants. Foreign investors' participation in power projects would increase investment efficiency and bring more benefits to investors and society.

Decision 11/2017/QD-TTg and Decision 13/2020/QD-TTg on incentives for solar power development were aimed at those goals. Foreign investors are allowed to put investment into solar power projects according to regulations specified in these decisions as well as the laws on investment in general and foreign investment in Viet Nam in particular.

Feed-in tariffs (FIT) for solar power in Viet Nam were considered too high, so Dung said that domestic and foreign investors should only focus on projects that had investment efficiency and benefits.

“The FIT for solar power projects are attractive but not high enough,” said Dung, adding that the FIT in the past 10 years had fallen quickly due to the development of science and technology from 9.35 US cents per kWh in 2017 to 7.09 cents in 2019 for solar power projects on land.

According to the MoIT, the cost of developing renewable energy used to be higher than for traditional power. Viet Nam had applied the FIT mechanism to promote the development of renewable energy. This mechanism was an effective tool to promote the rapid development of renewable energy around the world, especially for new markets like Viet Nam.

The development of renewable energy had ensured enough power to supply the economy, reducing costly oil-fired power and greenhouse gas emissions.

However, the FIT mechanism also had some limitations. The mechanism had attracted investment in solar power projects focusing on areas with potential. That had led to grid overload in those areas and increased competition for land.

When Viet Nam's renewable energy market developed and there were more changes to renewable energy technologies, Viet Nam needed to change the FIT mechanism to solve these limitations, Dung said. — VNS

Preferential programme promotes solar power

Preferential programme promotes solar power

The HCM City Power Corporation Corporation under Vietnam Electricity (EVNHCMC) is co-operating with suppliers to carry out preferential programmes to encourage enterprises and individuals in the city to use solar power.

Vietnam needs long-term policies on solar power development

Vietnam needs long-term policies on solar power development

The Decision 13/2020 on the development of solar power in Vietnam was released by the government on April 6, 2020.

MORE NEWS

The “seven-star” islands in Quang Ninh

Along with crystal blue sea and beaches, the 7 Sao (seven star) islands also have caves and primeval forests.

Customs you only see in Vietnam

The travel site Culture Trip has listed a number of Vietnamese customs that often surprise foreign tourists:

Investors and buyers play waiting game in credit switch

The State Bank of Vietnam finally created extra credit room for some banks on September 7. However, the extension is deemed low and may not help real estate businesses and homebuyers access feasible capital sources for their projects.

Woodwork exports to EU, US drop as consumers cut spending

Many woodwork manufacturers complain that exports have been sliding as people in target markets have been tightening their purse strings.

Vietnam: new destination for multinationals to set up R&D centers

Vietnam wants to upgrade foreign direct investment (FDI) quality by manufacturing products with higher hi-tech and added value, and multinationals are also striving to do this after many years in Vietnam.

Huge real estate projects seek new investors

Many investors have quit large-scale investment projects capitalized at trillions of dong.

VIETNAM NEWS HEADLINES SEPTEMBER 24

Work starts on Tan Van-Nhon Trach section of HCM City’s Ring Road No.3

Three Vietnamese airlines named among world’s best air services

Vietnam Airlines, Vietjet Air, and Bamboo Airways have been honoured in different categories by Skytrax, a UK-based site which ranks airlines and airports.

Vietnam Days Abroad 2022 to take place in Austria, India, RoK

Vietnam Days Abroad 2022 will be held in Austria, India, and the Republic of Korea (RoK) on the occasion of the anniversaries of diplomatic relations between Vietnam and these countries.

UN backs Vietnam’s development priorities: Secretary-General

The United Nations (UN) will continue paying attention to and support Vietnam's development priorities towards green and sustainable orientations, and just transition, especially in terms of financial access.

Vietnam merits seat at UN Human Rights Council: Washington Times

The Washington Times has published an article in which it supports Vietnam's candidacy for the United Nations Human Rights Council (UNHRC) for the 2023-2025 term.

Storm Noru to enter East Sea, localities warned to stay alert

The National Centre for Hydro-Meteorological Forecasting has predicted that storm Noru will enter the East Sea on September 25 evening, and recommended coastal localities to brace themselves for the storm.

Vietnam plans to vaccinate under-5 children against COVID-19 if there’s scientific basis

The Ministry of Health has asked provinces to calculate the number of children from 6 months old to under 5 years old to prepare a plan on COVID-19 vaccination for them when there are enough conditions and scientific basis.

VIETNAM BUSINESS NEWS SEPTEMBER 24

Untapped opportunities for Vietnamese pepper exports to UK

Startup ecosystem requires helping hand

Big passion for establishing businesses with novel ideas from many Vietnamese people is creating a vivid startup ecosystem for the country. However, the community is longing for more favourable conditions for it to grow further.
back_to_top