{"id":1191,"date":"2021-07-06T11:43:10","date_gmt":"2021-07-06T04:43:10","guid":{"rendered":"https:\/\/blogs.duanemorris.com\/vietnam\/?p=1191"},"modified":"2021-07-06T11:44:09","modified_gmt":"2021-07-06T04:44:09","slug":"vietnam-direct-power-purchase-agreements-dppa-and-solar-rooftop-updating-development-of-new-regulations-on-dppa-and-ci-rooftop-in-vietnam","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/vietnam\/2021\/07\/06\/vietnam-direct-power-purchase-agreements-dppa-and-solar-rooftop-updating-development-of-new-regulations-on-dppa-and-ci-rooftop-in-vietnam\/","title":{"rendered":"VIETNAM: DIRECT POWER PURCHASE AGREEMENTS (DPPA) AND SOLAR ROOFTOP- UPDATING DEVELOPMENT OF NEW REGULATIONS ON DPPA AND C&I ROOFTOP IN VIETNAM"},"content":{"rendered":"

Both draft regulations for the Direct Power Purchase Agreement (DPPA) pilot program and the C&I Rooftop Solar are now still under review by the competent authorities. Below are some key updates in these two sectors in Vietnam up to June 2021:<\/p>\n

1. Key updates on the Direct Power Purchase Agreement (DPPA) pilot pro-gram:<\/p>\n

\u00b7 MOIT is still reviewing the 2nd draft Circular on the pilot implementation of the direct power purchase between RE GENCO and the consumer (\u201cDraft DPPA Circular\u201d). The Circular will then be circulated throughout the rest of the gov-ernment before being legally approved and going into effect, ideally by the end of 2021;<\/p>\n

\u00b7 The Draft DPPA Circular maintains a target size of 1 GW for PDP-approved wind and solar projects above 30 MWac;<\/p>\n

\u00b7 RE Generation Companies (RE GENCO) and industrial Consumer(s) must apply together for participation in the DPPA Pilot Program through the DPPA online application portal;<\/p>\n

\u00b7 The RE GENCO must commit to reaching commercial operation date (COD) within 270 working days from the date of selection announcement;<\/p>\n

\u00b7 The DPPA Mechanism per the Draft Circular dated 8 April 2021 remains un-changed.<\/p>\n

\u00b7 DPPA Pilot Program Timeline:<\/p>\n

– Pilot Project Planning (May-December 2019): MOIT Public Consulta-tion; First Action Plan agreed with ERAV; Market Preparation;<\/p>\n

– Legal Approval\/Invitation to Participate (Q2-Q4\/2021): MOIT Circular draft published for public comment; MOIT Circular goes into effect; Pilot Program launched;<\/p>\n

– Project Selection (Q1-Q2\/2022): Applications to MOIT submitted and evaluated; Transaction documents executed; Operational capacity devel-oped.<\/em><\/p>\n

(Source: DPPA Pilot Program Update (V-LEEP II, June 2021)<\/strong>)<\/p>\n

2. Key updates on the C&I Rooftop Solar:<\/p>\n

\u00b7 In 2020, Vietnam recorded 102,000 rooftop systems and reached 9.58 GW in capacity;<\/p>\n

\u00b7 The FIT 2 scheme expired at the end of 2020 and now the market is still waiting for the new Government\u2019s new regulations on FIT 3;<\/p>\n

\u00b7 The draft regulations on FIT 3 for rooftop solar projects are still under re-view with the proposed FIT 3 as below:<\/p>\n

\u2134 For projects that achieve commercial operation in 2021, the FIT-3 in-centive will depend on project size:<\/p>\n

– Less than 20kWp system: 6.84 UScent\/kWh
\n– 20kWp to less than 100kWp: 6.35 UScent\/kWh
\n– 100kWp to 1,250kWp: 5.89 UScent\/kWh<\/p>\n

\u2134 For projects COD in 2022 and onward: MOIT to review and propose new tariff on annual basis;<\/p>\n

\u2134 Rooftop solar systems will be required to have a minimum self-consumption rate of 20% or a maximum excess power sale of 80% gener-ation; <\/p>\n

\u2134 Rooftop solar systems over 100kWp in size may be required to install mini-SCADA systems to support remote monitoring and system controls.<\/p>\n

For more information on the above, please do not hesitate to contact the author Dr. Oliver Massmann under omassmann@duanemorris.com. Dr. Oliver Massmann is the General Di-rector of Duane Morris Vietnam LLC, Member to the Supervisory Board of PetroVietnam Insurance JSC and the only foreign lawyer presenting in Vietnamese language to members of the NATIONAL ASSEMBLY OF VIETNAM.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Both draft regulations for the Direct Power Purchase Agreement (DPPA) pilot program and the C&I Rooftop Solar are now still under review by the competent authorities. Below are some key updates in these two sectors in Vietnam up to June 2021: 1. Key updates on the Direct Power Purchase Agreement (DPPA) pilot pro-gram: \u00b7 MOIT … <\/p>\n

Continue reading “VIETNAM: DIRECT POWER PURCHASE AGREEMENTS (DPPA) AND SOLAR ROOFTOP- UPDATING DEVELOPMENT OF NEW REGULATIONS ON DPPA AND C&I ROOFTOP IN VIETNAM”<\/span><\/a><\/p>\n","protected":false},"author":24,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[821,109,807,26],"ppma_author":[1007],"class_list":["post-1191","post","type-post","status-publish","format-standard","hentry","category-vietnam-general","tag-dppa","tag-energy","tag-rooftop","tag-vietnam"],"authors":[{"term_id":1007,"user_id":24,"is_guest":0,"slug":"omassmann","display_name":"Dr. Oliver Massmann","avatar_url":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-content\/uploads\/sites\/19\/2014\/08\/massmannoliver-125x150.jpg","author_category":"1","last_name":"Massmann","first_name":"Dr. Oliver","job_title":"","user_url":"http:\/\/www.duanemorris.com\/attorneys\/olivermassmann.html","description":"Read Oliver's bio.<\/a>"}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/posts\/1191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/comments?post=1191"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/posts\/1191\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/media?parent=1191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/categories?post=1191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/tags?post=1191"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/ppma_author?post=1191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}