Vietnam’s Ministry of Industry and Trade (MOIT) has unveiled a revised feed-in tariff (FIT) framework for solar power, incorporating location-based pricing and, for the first time, incentivizing projects equipped with energy storage systems (ESS).
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As global costs for solar, wind, and battery storage systems fall, Vietnam could replace fixed feed-in tariffs (FiTs) with standardized competitive auctions to procure clean energy at the lowest cost.
Vietnam''s Ministry of Industry and Trade (MOIT) has unveiled a revised feed-in tariff (FIT) framework for solar power, incorporating location-based pricing and, for the first
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Vu Phong Energy Group is a leading company in Vietnam that provides comprehensive solutions for solar power installation, operation and maintenance. We have successfully implemented hundreds of projects across the country,
Vietnam is now developing a competitive bidding mechanism for solar energy to improve grid efficiency, promote competition, and ensure a stable energy supply, but it''s currently in the works and hasn''t been implemented yet.
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Vietnam is now developing a competitive bidding mechanism for solar energy to improve grid efficiency, promote competition, and ensure a stable energy supply, but it’s currently in the works and hasn’t been implemented yet. As such, Vietnam has been in a transition phase since the end of the FiT policy.
FiT mechanisms set a fixed price for solar energy, overlooking regional variations in solar potential. This resulted in underdevelopment of solar PV in northern Vietnam, where solar radiation is low, while leading to overdevelopment in the south-central and southern regions, where solar radiation is high.
Such financial hurdles have challenged the government’s ability to use fossil fuels to expand electricity supply in step with Vietnam’s fast-growing economy. Contrastingly, solar and wind power’s lower capital requirements and faster development timelines are well-suited to meeting Vietnam’s near-term energy needs.
On average, the solar radiation ranges from 1,300 to 2,900 kWh per year, increasing towards the southern regions. This article examines Vietnam’s key policies and models that have played a crucial role in driving the expansion of solar energy.
Vietnam’s solar panel trade is regulated under Decree 26/2023/ND-CP, which outlines the Schedule of Export Tariffs and Preferential Import Tariffs. This decree, effective from July 15, 2023, sets specific import duties on goods, including solar panels and related components.
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