Illustrative image (Source: VNA) HCM City (VNS/VNA) - Investors in solar energy projects are racing to begin operations beforeJune 30, 2019, to qualify for incentives offered by theGovernment.
Opportunities to invest in the solar energy sector havebecome abundant after Prime Minister Nguyen Xuan Phuc issued a decision toencourage the development of the sector last year.
Under Decision 11/2017/QD-TTg, which took effect in June lastyear, power generated by solar projects will be paid 9.3cents/kWh (2,086 VND) for 20 years, a profitable rate for investors. The price could change for operators going on stream after June 30 next year.
Similarly, investors signing power sellingcontracts with the Vietnam Electricity Corporation untilthat date will be eligible for various incentives related to land, capitaland import and corporate taxes.
According to the Ministry of Industry and Trade’s electricity and renewableenergy department, as of the end of last June100 major solar energy projects with a total capacity of4.7 GW by 2020 had been licensed.
Besides, generation of 11.55MW of rooftop solarenergy has also been approved.
The central provinces of Ninh Thuan and Binh Thuan, the southernprovinces of Tay Ninh and Long An and the CentralHighlands province of Dak Lak offer the bestlocations for solar energywith few rainy days and many sunny days ina year.
In Ninh Thuan, for instance, the numberof hours of sunshine in a year is 2,800and the radiation is equivalent to 1,800kWh/m2 ina year.
The Trung Nam Group plans to invest 5 trillion VND (218 million USD) intobuilding a 204MW solar plant in Thuan Bac district in Ninh Thuan.
It is expected to become operational by June 2019and supply 450 million kWh of powera year to become one of the most important energyprojects in the country.
CMX Renewables with Singaporean partner Sunseap will set up a168MW plant at a cost of 4.4 trillion VND (192 million USD).
In Binh Thuan, solar energy capacity is expected to rise to4,755MW by 2030 and the plants are expected to cost 110 trillionVND (4.8 billion USD) to build. The province has licensed 15 projects.
In Tay Ninh, Xuan Cau Group and Thailand’s B.Grimm Company have invested420 million USD in setting up a 420MW solar energy plant.
In Long An, Bamboo Capital InvestmentFund has joined hands with the Republic of Korea’s Hanwhato build a 100MW plant, and in Dak Lak, three projects witha total capacity of 3,367MW have been approved in Ea Sup district.
According to the national renewable energy developmentstrategy for 2030, solar power will increase from 10 million kWh in2015 to 1.4 billion kWh in 2020 and 35.4 billion kWh in 2030.
In one year after Decision 11/2017/QD-TTg and guidancecirculars were issued, many major solar projects have beenproposed.
However, they face many hurdles due to lack of clarityover tax provisions, connectivity with the gridand relationship between power sellers and buyers, especially inthe case of rooftop solar energy.
Investors wanted related authorities to soon put in placethe complete mechanism and link them with the grid system toavoid wastage since numerous projects are likely to go onstream at the same time before next June.-VNS/VNA
VNA
