It has been 10 month waiting after Decision 11/QDD-TTg expired, now the Prime Minister has issued Decision 13/2020 on the incentive mechanism for solar power development. We would like to update the very new key issues as follows:
1. FIT scheme
Following notification No. 402/TB-VPCP of Prime Minister Nguyen Xuan Phuc, now FIT scheme is confirmed that it only applies for the following projects:
– For grid-connected projects: the projects that: (i) has
in-principle investment decision before 23/11/2019, and (ii) COD of
the whole or part(s) of project from 01/7/2019 to 31/12/2020.
– For grid-connected projects in Ninh Thuan: (i) the projects
that were included into power development plans, (ii) COD before
01/01/2021, and (iii) the accumulated capacity not exceeding 2,000
MW.
It is noted that regarding grid-connected projects, FIT scheme is
only applied for projects with solar cell's capacity more than
16% or module more than 15%.
– For rooftop projects: the projects that are brought into
operation, generate electricity and have electricity meter readings
confirmed from 01/7/2019 to 31/12/2020.
The term of FIT scheme for the above projects shall be applied for
20 years from COD.
2. FIT2
FIT2 are as follows:
– Floating solar energy projects: UScent 7.69
– Ground mounted solar energy projects: UScent 7.09
– Rooftop energy solar energy projects: UScent 8.38
For Ninh Thuan province, grid-connected solar power projects that (ii) COD before 01/01/2021, and (iii) the accumulated capacity not exceeding 2,000 MW will be applied the FiT of UScent 9.35.
3. Competitive mechanism
The projects that do not fall with the scope of FIT scheme shall be subject to competitive scheme.
4. COD definition
COD of the whole or part(s) of the grid-connected project is
defined as the date that the whole or part(s) of the project is
ready to sell electricity to the buyer and satisfy the
follows:
a) Has finished the initial tests for the whole or part(s) of the
construction;
b) Has been issued electricity operation license;
c) Has agreed to the index of the electricity meter in order to
make payment.
5. Rooftop project definition
Rooftop projects are the projects have photovoltaic panels installed on the rooftop of the construction and have the capacity not exceeds 01 MW, connect to the grids which is less than 35kV.
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