The Ministry of Industry and Trade is drafting a decree detailing certain provisions of the Electricity Law regarding the development of renewable energy and new energy. The draft proposes a series of incentives and support measures for projects in these sectors.

Under the draft, solar and wind power projects with energy storage systems connected to the national power grid will enjoy several preferential policies.

These projects will be prioritized for electricity dispatch as per current regulations on the power system and electricity market.

Additionally, the energy storage systems of solar and wind power projects will be considered products eligible for tax incentives under applicable laws. These projects will also benefit from other advantages as specified by existing legal provisions.

Offshore wind power projects to receive special investment incentives

The draft highlights specific benefits for offshore wind power projects, categorizing them as renewable energy projects eligible for special investment incentives.

These include exemptions from sea area usage fees during construction and a 50% reduction in such fees for 12 years of operation.

Projects will also be exempt from land use and lease fees. Moreover, a minimum long-term contracted electricity volume of 50% is guaranteed.

State-owned enterprises holding 100% charter capital can bypass requirements for investment guarantees under the Investment Law and may receive approval from the Prime Minister for credit limits exceeding statutory thresholds under the Law on Credit Institutions.

For foreign investors, the draft mandates compliance with market access conditions for foreign investment, with a maximum capital ownership of 65% if local partners are involved.

Investors must demonstrate experience with projects of similar scale in Vietnam or abroad, possess financial capacity, and provide audited evidence of net assets exceeding the proposed project’s total investment.

Additionally, the project must align with the agreements of the Ministries of National Defense, Public Security, and Foreign Affairs.

Emphasis on research and technology for solar and wind energy

The draft encourages and supports research, development, and application of technology in the solar and wind energy sectors in Vietnam.

This includes government-prioritized programs for the production of photovoltaic panels, wind turbines, and energy conversion equipment.

Projects in new energy categories must meet certain criteria to qualify for incentives. These include producing electricity entirely from green hydrogen, green ammonia, or their mixtures; supplying electricity to the national grid; and being the first project of their type in each new energy category.

Eligible clean energy projects will enjoy significant benefits, including exemption from sea area usage fees during construction and a 50% reduction for nine years after operation.

They will also be exempt from land use and lease fees during construction, with further exemptions or reductions as per investment and land laws.

Long-term contracted electricity volumes of 80% are guaranteed for up to 12 years, provided the electricity is sold to the national grid.

The Electricity Law defines new energy as electricity generated from green hydrogen, green ammonia, or other emerging energy sources.

Renewable energy includes electricity derived from primary sources such as solar, wind, oceanic, hydropower, biomass, and waste energy, excluding fossil fuel-based waste classified as hazardous.

Tam An