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Decision paves way for solar power development

Opportunities to invest in Vietnam’s solar energy sector are abundant after Prime Minister Nguyen Xuan Phuc issued a decision to encourage the development of solar power projects.
Decision paves way for solar power development ảnh 1Illustrative image (Source: Internet)
Hanoi (VNA) – Opportunities to invest in Vietnam’s solar energy sector areabundant after Prime Minister Nguyen XuanPhuc issued a decision to encourage the development of solar power projects.

Under Decision 11/2017/QD-TTg, which takes effectivefrom June 1, 2017, all output produced by solar power projects will bepurchased for 2,086 VND (9.35 UScent)/kWh (excluding VAT) - a profitable ratefor investors.

The price will be adjusted in line with the VND/USD exchange rate, and only appliedto power grid-connected projects with the cell efficiency above 16 percent or productivitymodule over 15 percent.

Investors involved in solar power projects in Vietnam will beeligible for various incentives, especially support related to land, investmentcapital and import and corporate income tax.

The decision aims to draw finances to the field, with many investors interestedin the industry.

In March, the Central Highlands province of Dak Lak granted investmentcertificates and signed agreements with partners to develop a series of solarpower projects with total investment of 3.3 billion USD.

The US power group AES signed a memorandum ofunderstanding with provincial authorities to construct a 750-million-USD solarpower plant with combined capacity of 300-500 MW.

Also, Xuan Thien Dak Lak Lt.d, Solar Park Global of the Republic of Korea (RoK)and Long Thanh Infrastructure Investment received approval to implementprojects with respective worth of 2.2 billion USD, 45 million USD and 308million USD.

Meanwhile,the RoK’s electricity developer Solkiss signed an agreement with the northern provinceof Yen Bai to build a 500MW-solar electricity project worth more than 1 billionUSD in Thac Ba Lake.

Many more domestic and foreign investors have been pouringtheir money into solar energy projects in the central provinces of Binh Dinh,Khanh Hoa, Ninh Thuan, Thua Thien-Hue, Ha Tinh and Quang Ngai, and the MekongDelta province of Soc Trang.

However, the number and value of projects invested by foreign firms in thefield remains limited.

The Foreign Investment Agency under the Ministry of Planning and Investmentsaid that only 16 foreign-invested green energy projects were operating inVietnam as of the end of 2016, with total registered capital of 778 million USDand only 18 percent of them invest in solar power.

The decision is expected to pave the way for investors,especially foreign investors, to expand their operation in the power industry.-VNA
VNA
# solar energy #Vietnam #investment
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