EFFECTIVE PERIOD OF A POWER PURCHASE AGREEMENT FOR GRID-CONNECTED SOLAR POWER PROJECTS IS 20 YEARS
On April 06, 2020, the Prime Minister promulgates the Decision No. 13/2020/QD-TTg on mechanism for encouragement of solar power development in Vietnam.
Accordingly, the effective period of a power purchase agreement for grid-connected solar power projects may not exceed 20 years from the commercial operation date. After this term, both parties may extend the agreement or sign a new agreement in accordance with law provisions at that time. A model power purchase agreement for grid-connected solar power projects must be applied in the power purchase between the electricity seller and the electricity buyer that is Vietnam Electricity Corporation or member units authorized by Vietnam National Electricity Corporation.
The purchasing price of solar power ranges from VND 1,644 - 1,943 per kWh, for floating solar, ground solar power and rooftop solar power projects. This price does not include value added tax and is applicable within 20 years from the date of commercial operation.
For Ninh Thuan province, the power purchase price from grid-connected solar power projects that have been included in the electricity development planning at all levels and have a commercial operation date before January 1, 2021 with a total cumulative capacity not exceeding 2,000 MW is VND 2,086/kWh.
This Decision takes effect on May 22, 2020.
