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Government approves incentives for solar power

Released at: 09:41, 20/08/2016

Government approves incentives for solar power

Photo: Viet Tuan/Illustration

MoIT proposal aimed at encouraging solar power investments around the country.

by Quynh Nguyen

The government has approved a proposal from the Ministry of Industry and Trade (MoIT) to issue support mechanisms to encourage solar energy projects in the country. 

At the government’s regular meeting Prime Minister Nguyen Xuan Phuc asked MoIT to add more specific regulations to the country’s solar power plan.

A temporary power price will be piloted in the 2016-2018 period for solar power projects connected to the grid and with development potential. Transparency is also sought in the bidding process for solar power projects so the price may fall.

For solar power projects not connected to the grid (i.e., those installed on roofs), the PM asked MoIT to add regulations on certified emission reductions (CERs).

MoIT was also asked to complete regulations on license-exempt business registration and the waiver of taxes and fees for solar power roof panels where installed capacity does not exceed 50 kW.

The ministry is also to increase the localization rate of solar power projects in order to gradually cut the solar power price.  

In recent years Vietnam has attracted many investors in solar power, such as Hanwha Solar from South Korea with a $200 million investment in central Thua Thien Hue province and Solar Park from South Korea with a $600 million project in north-central Ha Tinh province.

India’s Tata Power Co. is also seeking investment opportunities in solar and wind power in the Mekong Delta’s Soc Trang province and south-central Ninh Thuan province. 

Leaders in central Quang Nam province met recently with Royale Star Holdings Pte., Ltd from Singapore regarding a solar power investment plan for the province. Last year Royale Star and Russia’s Arman Holding Wordwide Group cooperated with the Vietnam Natural Energy Development Investment Joint Stock Company to build a solar power plant in the province with total investment capital of $140 million and a capacity of 100 MW.

Two companies from the UK, G.T & Associates and Marshall & Street Ltd, last year proposed a solar power plant in Quang Nam with investment of about $225 million.

Quang Ngai province, meanwhile, has permitted the UK’s Kimin Power Co. to research an investment in a solar energy plant with a capacity of 150 MW on an area of about 250 ha.

Under the national plan outlined by the government, the total capacity of hydropower projects will be 21,600 MW by 2020 and 27,800 MW by 2030, increasing from 17,000 MW now.

The total capacity of wind power projects will be increased from 140 MW to 800 MW by 2020 and to 6,000MW by 2030. Solar capacity, meanwhile, is to rise from 850 MW to 4,000 MW by 2020 and 12,000 MW by 2030.

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