Anticipated Release of New Green Power Pricing Structure Draft in November

Anticipated Release of New Green Power Pricing Structure Draft in November

The Ministry of Industry and Trade (MoIT) in Vietnam is currently in the process of collecting data to develop a draft for a new pricing structure for solar and wind power. The draft, expected to be released in November, will also propose guidelines for determining the capacity scale of solar and wind power plants eligible for investor selection, aligning with Power Development Plan VIII.

According to the draft, the pricing of solar power will be determined based on the intensity of sunlight in each region, with the northern region having a higher price bracket to encourage investment. The proposed pricing structure is expected to be similar to that applied to transitional projects outlined in Circular No.15/2022/TT-BCT, but with variations in input parameters. These parameters will include factors such as installed capacity, economic project lifespan, debt repayment periods, equity to loan ratio, profit margins, and a standard distribution coefficient corresponding to energy output expectations. Other parameters, such as investment rates, foreign loan ratios, and operations and maintenance costs, among others, will also be considered.

The draft is also anticipated to include parameters for calculating the average long-term energy output of standard solar and wind power plants, based on data provided by consultants to ensure universality. Additionally, rules for setting local and foreign currency interest rates will be established.

As per the provisions of the Law on Electricity, Vietnam Electricity (EVN) will be responsible for calculating the pricing structure and submitting proposals to the MoIT for approval annually, before November.

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