The new regulation on tariffs of wind power projects in Vietnam


The Prime Minister of Vietnamese Government has issued the Decision No 39/2018/QĐ-TTg dated 10/9/2018 for adjusting and supplementing a number of articles of the Decision No 37/2011/QĐ-TTg dated at 29/6/2011 on the mechanism to support the development of wind power projects in Vietnam.


The Decision regulates that the buyer is responsible to buy all electricity from the wind power projects at the  point of electricity delivery with the new tariff as follows:

The tariff of 1928 VND/kWh (equivalent to 8.5 UScent/kWh) for on-shore wind power projects and 2223 VND/kWh (equivalent to 9.8 UScent/kWh) for off-shore wind power projects. This is the tariffs excluding VAT with the average exchange rate as 22,683 VND/1USD announced by Vietnamese Stat Bank at 30/8/2018 and adjusted by the fluctuation of exchange rate of VND/USD.

The cost of purchasing electricity from wind power projects is calculated and included in the input parameters of the electricity price scheme of the Electricity of Vietnam.

The above electricity tariffs are applied to a part or whole of the grid connected wind power projects with commercial operation date before 1 November 2021 for 20 years from the date of commercial operation.

For the wind power projects commercially operated prior to issuing Decision No. 39/2018/QD-TTg dated 10/9/2018 the above electricity tariffs will be applied  from 1 November 2018 for the remaining period of signed PPA.

The wind power projects have been applied for these electricity tariffs will be not subject to the price mechanism applicable to the electricity generation of the project according to other current regulations.

The Prime Minister assigns the Ministry of Industry and Trade to propose and submit to the Government for consideration and decision the mechanism for auction of wind power development and tariffs for wind power projects applied from 1/11/2021.

Besides, Decision No. 39/2018/QD-TTg also amended the conditions for starting construction of wind power, accordingly, the investors are only allowed to start construction of wind power projects when they meet the conditions for project construction start in accordance with the law on construction, and have the PPA signed with electricity Buyer and grid connection agreement with a Power Distribution or Power Transmission company, and wind data report for a continuous period of at least 12 months.

Regarding the tariffs of solar power projects, the Prime Minister has decided to allow Ninh Thuan province to enjoy the electricity tariff policy under Decision No. 11/2017 / QD-TTg dated April 11, 2017 until 2020 for solar power projects and connection infrastructure with the designed capacity of 2,000MW and tariff of 2086 VND/kWh (equivalent to 9.35 UScent/kWh). Besides, the solar power projects also enjoy the incentives on corporate income tax, import tax, exemption from land use fee, land rental … in accordance with current regulations.

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