Preferential mechanism
In Chapter II, the Decree stipulates in detail the incentive mechanism and support for the development of the power storage system of renewable energy projects, in which renewable energy projects with an installed power storage system and connections to the national power system are prioritized for mobilization during peak hours of the power system according to regulations, except for self-produced and self-consumed power sources.
The Decree also stipulates preferential policies, supporting appropriate research and development of technology in the fields of wind power and solar power; conditions and duration of application of preferential and support policies.
Notably, the project specified in Clause 1 of this Article is entitled to the following preferential mechanisms:
a) Exemption from the cost of using the sea area during the basic construction period but not exceeding 3 years from the date of construction. 50% reduction in the cost of using the sea area within 9 years after the exemption period of the basic construction period.
b) Exemption from land use fees and land rents during the basic construction period but not exceeding 3 years from the date of construction. After the exemption period of the basic construction period, the exemption and reduction of land use fees and land rents shall be implemented in accordance with the provisions of the law on investment and land.
c) The minimum long-term contractual electricity output is 70% within the loan principal repayment period but not exceeding 12 years, unless the investor and the electricity buyer have another agreement. This mechanism is not applied in cases where the project cannot produce the minimum committed output due to the project's side or due to the need for load or the technical conditions of the power system, which cannot consume all output.
d) After the period specified in Point a and Point c of this Clause, the application of preferential mechanisms shall comply with the provisions of law at the time of expiration.
Discount for new energy projects
For new power projects entitled to preferential and support policies specified in Clause 2, Article 23 of the Electricity Law when meeting the following conditions:
- New power projects are produced from 100% green hydrogen or 100% green am ammonia or 100% a mixture of green hydrogen and green ammonia.
- Power supply project for the national power system;
- The first project for each new type of energy plant.
The above projects are entitled to preferential mechanisms such as: exemption of land use fees for the sea area during the basic construction period but not more than 3 years from the date of construction; 50% reduction in land use fees for the sea area within 9 years after the exemption period of the basic construction period.
Exemption from land use fees and land rents during the basic construction period but not exceeding 3 years from the date of construction. After the exemption period of the basic construction period, the exemption and reduction of land use fees and land rents shall be implemented in accordance with the provisions of the law on investment and land.
The minimum long-term contract electricity output is 70% of the loan principal repayment period but not exceeding 12 years, unless the investor and the electricity buyer have another agreement.
This mechanism is not applied in cases where the project cannot produce the minimum committed output due to the project's side or due to the need for load or the technical conditions of the power system, which cannot consume all output.
After the deadline specified in points 1 and 3 above, the application of preferential mechanisms shall comply with the provisions of law at the time of expiration.
Regulations on developing self-produced and self-consumed electricity
Organizations and individuals who own self-produced and self-consumed electricity sources such as rooftop solar power can sell surplus electricity if they do not use them all.
Other self-produced and self-consumed power sources are allowed to sell surplus electricity but not more than 10% of actual electricity.
The cost of purchasing surplus electricity products from renewable energy sources and new energy is fully accounted for and included in the input parameters of the annual wholesale and retail electricity price plan of Vietnam Electricity Group.
The Decree also stipulates in detail the installation capacity; procedures for developing self-produced and self-consumed power sources; documents, contracts, and models for easy implementation by organizations and individuals.
