COVID-related construction and supply chain delays resulted in many solar and wind projects in Vietnam failing to achieve commercial operations before the feed-in-tariff (FIT) deadline of 31 December 2020 for solar projects and 1 November 2021 for wind projects.
Achieving commercial operations before this deadline was a key requirement to qualifying for the 20-year FIT of USD 0.0709/kWh for solar projects, USD 0.085/kWh for onshore wind projects and USD 0.098/kWh for offshore wind projects.
On 3 October 2022, the Ministry of Industry and Trade (MOIT) released Circular 15/2022/TT-BCT (Circular 15), which sets out a framework for Vietnam Electricity (EVN) to enter into bilateral tariff negotiations with the developers of these projects that failed to achieve commercial operations before the applicable FIT deadline (referred to in Circular 15 as transitional projects), by reference to a ceiling price (i.e. the maximum tariff payable by EVN).
On 7 January 2023, the MOIT announced that the ceiling price will be VND 1,184.90/kWh for ground mounted solar projects, VND 1,508.27/kWh for floating solar projects, VND 1,587.12/kWh for onshore wind projects and VND 1,815.95/kWh for offshore wind projects.
EVN will now use these ceiling prices to negotiate tariffs with transitional solar and wind projects that do not yet have a tariff in place.