Prime Minister Nguyen Xuan Phuc signed Resolution 115/NQ-CP on 31 August 2018 to confirm some special policies to support Ninh Thuan province (“Resolution 115”). Pursuant to Article 1.1.e of the Resolution 115, the Prime Minister confirmed that the commercial operation date (COD) deadline (previously 30 June 2019) for solar projects in Ninh Thuan province to enjoy the 9.35 US cents feed in tariff has been extended to the end of 2020. This extension applies to those solar energy projects approved in the relevant Master Plan (approx. 2000MW). Resolution 115 took effect on 31 August 2018 and lays to rest the badly kept secret that Ninh Thuan, a literal hot spot for solar projects, will enjoy more favorable terms than projects in other locations which remain bound to the 30 June 2019 COD deadline. Clear and definitive statements as to what will happen after 30 June 2019 for projects in other locations is now desperately required. Our view and intel is that no-one else should bank on extensions and should develop strategies now to mitigate risks of missing the 30 June 2019 date (e.g. – look to be an early mover in the hotly-anticipated DPPA (direct power purchase) market).
For more information about renewable energy projects in Vietnam, please contact Giles at GTCooper@duanemorris.com or any of the lawyers in our office listing. Giles is co-General Director of Duane Morris Vietnam LLC and branch director of Duane Morris’ HCMC office.