The Ministry of Industry and Trade (MOIT) has just issued Document No. 9608/BCT-DL, dated December 16, 2019, to the People's Committees of the provinces and cities directly under the Central Government and the Electricity of Vietnam, on stopping proposals and agreements for solar power projects (SPPs) under Feed in Tariff (FIT) mechanism.

According to the document of MOIT, after Decision No. 11/2017/QD-TTg of Prime Minister, dated April 11, 2017 (Decision No. 11) on the incentive mechanism for developing SPPs in Vietnam, there about 135 SPPs with a total capacity of about 8,935 MW have been added to the Power Development Planning (PDP).

Up to now, a total capacity of SPPs in operation has reached about 4500 MW that contributes to guarantee electricity supply for the socio-economic development of the country and life needs of the people.

On November 22, 2019, the Government Office in the announcement No. 402/TB-VPCP informed the conclusion of the Prime Minister Nguyen Xuan Phuc on the draft of incentive mechanism for solar power development in Vietnam applied from July 1, 2019 (following Decision No. 11), in which showed that FIT must be applied only for SPPs with signed PPA and SPPs construction with being put into operation in 2020.

Currently, MOIT is working with ministries and agencies to finalize the draft on incentive mechanism for developing SPPs in Vietnam.

In order to ensure the interests of investors, in the coming time, MOIT asks the Ministry of Industry and Trade shall the People's Committee of the provinces, cities and EVN to stop the proposals, agreements for developing SPPs under FIT mechanism until the new instruction of the competent level.

Source: http://nangluongvietnam.vn