Vietnam’s Ministry of Industry and Trade has issued Circular 9608/BCT-DL, in which it urges regional governments throughout the country and state-owned utility Electricity of Vietnam (EVN) to suspend new approvals for large-scale PV projects under the FIT scheme.
According to the Vietnam Clean Energy Association (VCEA), the government has already approved 135 projects with a combined capacity of 8.93 GW under the scheme. Around 4.5 GW of those projects came online at the end of last June, when the first phase of the country's feed-in tariff (FIT) scheme expired.
The ministry said that only projects with signed FIT contracts that are scheduled for completion scheduled by the end of this year will be able to secure subsidies, while all of the remaining projects will have to compete again in future auctions. “The Ministry of Industry and Trade is now working with ministries and agencies to complete the draft of a new auction mechanism,” the government said.
The Vietnamese authorities announced plans to switch from subsidizing PV deployment through FITs in favor of solar auctions in early December, marking a clear shift away from earlier promises to reboot the FIT scheme.
Vietnam will need to add about 3.5-4 GW of new generating capacity per year to keep up with rising electricity demand, which is growing at an annual rate of around 10%.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.
“Urged”? This is a Leninist autocracy. Obey or get fired, in extreme cases shot.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.