{"id":839,"date":"2018-09-12T09:06:59","date_gmt":"2018-09-12T02:06:59","guid":{"rendered":"http:\/\/blogs.duanemorris.com\/vietnam\/?p=839"},"modified":"2018-09-12T09:06:59","modified_gmt":"2018-09-12T02:06:59","slug":"vietnam-power-sector-new-feed-in-tariffs-for-wind-energy-projects","status":"publish","type":"post","link":"https:\/\/blogs.duanemorris.com\/vietnam\/2018\/09\/12\/vietnam-power-sector-new-feed-in-tariffs-for-wind-energy-projects\/","title":{"rendered":"VIETNAM \u2013 POWER SECTOR – NEW FEED-IN-TARIFFS FOR WIND ENERGY PROJECTS"},"content":{"rendered":"

THE PRIME MINISTER\u2019S IN-PRINCIPLE APPROVAL<\/strong>
\nOn 11 September 2018, the Prime Minister has approved a draft decision on new feed-in tariffs (FITs) applicable to wind power projects in Vietnam. This FITs decision will become effective 1 November 2018 (the \u201cPM Decision\u201d). The PM Decision will amend and revise certain articles of the Prime Minister\u2019s Decision No. 37\/2011\/QD-TTg on the mechanisms supporting the development of wind power projects in Vietnam. <\/p>\n

FITS PRICE FOR WIND ENERGY PROJECTS <\/strong>
\nFITs price for wind power projects will be increased from the current 7.8 US cents \/ kWh to (i) 8.5 US cents \/ kWh applicable to onshore wind power projects, and (ii) 9.8 US cents \/ kWh applicable to offshore wind power projects.
\nOnshore and offshore wind power projects are roughly defined in the PM Decision as follows: (i) onshore wind power project means on-grid wind power project that having its wind turbines to be built and operated on inland areas and coastal zones (NB: boundary of such inland areas and coastal zones is the average low water line for 18.6 years), and (ii) offshore wind-power project means on-grid wind power project that having its wind turbines to be built and operated outside inland areas and coastal zones to the sea.
\nWe believe that the MOIT should provide further guidelines for a better definition of onshore and offshore wind power projects. <\/p>\n

COD FOR NEW FITS – WIND POWER PROJECTS<\/strong>
\nThe new FITs price must apply to a part or the whole of a wind power project that achieves commercial operation date (\u201cCOD\u201d) before 1 November 2021, and such new FITs will apply for 20 years from the COD of such wind power project.
\nFor wind power projects that have achieved COD prior to the effective date of the PM Decision (i.e., 1 November 2018), the new FITs price may apply for the remaining term of the relevant signed wind power purchase agreement (PPA). However, it is not crystal clear if the new FITs price will automatically apply to the current operating wind power projects, or it is still required to re-negotiate and revise the current signed wind PPA with EVN. In case of the latter, it will be very challenging to re-negotiate and revise the current signed wind PPA with EVN. <\/p>\n

AUCTION MECHANISM AFTER 1 NOVEMBER 2021<\/strong>
\nAccording to the PM Decision, MOIT must prepare and submit a policy on auction for selection of new wind power projects and wind power prices since 1 November 2021 onward.<\/p>\n

*************
\nPlease do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com or any lawyer in our office listing if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.<\/p>\n","protected":false},"excerpt":{"rendered":"

THE PRIME MINISTER\u2019S IN-PRINCIPLE APPROVAL On 11 September 2018, the Prime Minister has approved a draft decision on new feed-in tariffs (FITs) applicable to wind power projects in Vietnam. This FITs decision will become effective 1 November 2018 (the \u201cPM Decision\u201d). The PM Decision will amend and revise certain articles of the Prime Minister\u2019s Decision … <\/p>\n

Continue reading “VIETNAM \u2013 POWER SECTOR – NEW FEED-IN-TARIFFS FOR WIND ENERGY PROJECTS”<\/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":[845,92,69,26,622],"ppma_author":[1007],"class_list":["post-839","post","type-post","status-publish","format-standard","hentry","category-vietnam-general","tag-feed-in-tarifff","tag-power","tag-renewable-energy","tag-vietnam","tag-wind-energy"],"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","0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":"","8":""}],"_links":{"self":[{"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/posts\/839","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=839"}],"version-history":[{"count":0,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/posts\/839\/revisions"}],"wp:attachment":[{"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/media?parent=839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/categories?post=839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/tags?post=839"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/blogs.duanemorris.com\/vietnam\/wp-json\/wp\/v2\/ppma_author?post=839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}