Vietnam mulls multi-layered FIT scheme as it kicks energy transition into gear

Published onFebruary 20, 2019

With its feed-in tariff set to expire at the end of June, Vietnam is considering different levels of payment, classified across three irradiation regions and involving four solar technologies. Future payments would range from $0.0659-0.0985/kWh, with the cloudy north in line for the highest tariffs and with the government likely to revise tariffs for new projects every two years.

The shape of Vietnam’s solar policy after its FIT regime expires in June will be one of the most hotly anticipated PV developments in Southeast Asia. According to a draft decision released by the Ministry of Industry and Trade, the 20-year FIT of $0.0935/kWh introduced in April 2017, and valid for projects that achieve commercial operation before June 30, could be replaced with a two-year solar tariff, which would take into consideration various irradiation levels. With the exception of the rooftop solar FIT in the cloudy north – which would be set at $0.0985/kWh in the first year and $0.0886/kWh thereafter – the proposed new tariffs are lower than the current ones. “Overall, from July 2019 to June 2020, the southern region will get 25% less FIT, the central region 15% less and the FIT for the northern region remains approximately the same,” said Rystad Energy analyst Minh Khoi Le. “The FIT will reduce by 5% across all regions for the same period in 2020-2021.”