September 14 (Renewables Now) - The government of Vietnam has voted in favour of a draft decision to increase feed-in tariffs (FiTs) for wind power and the creation of a tendering mechanism for the sector after 2021.
The in-principle approval, issued earlier this week, aims to boost renewables development in the country and comes into effect from November 1, 2018. It envisages an increase in the tariffs for onshore and offshore wind projects to VND 1.928 (USD 0.085) and VND 2.223 (USD 0.098) per kWh, respectively. The rate for all wind projects currently stands at USD 0.078 per kWh.
The new tariffs will apply to projects that will achieve their commercial operation date (COD) before November 1, 2021 and will be in force for 20 years after the COD. For new power plants that get commissioned before November 2018, the new FiTs will be applicable for the remaining term of the project’s power purchase agreement (PPA).
According to the government’s decision, the Ministry of Industry and Trade (MOIT) will have to devise an auction mechanism for selecting wind projects after November 1, 2021.
(USD 1.0 = EUR 0.855)