The government has approved a temporary purchase price for renewable projects

The Ministry of Industry and Trade has approved a temporary electricity purchase price for 19 renewable energy projects, which is half the maximum rate. These projects have a combined capacity of 1,347 megawatts and will sell electricity to the government at VND753-908 ($0.032-0.039) per kilowatt-hour before VAT.

However, another 48 projects have yet to come to an agreement with the government on the purchase price. These projects missed the operation deadline of December 31, 2020 for solar power projects and November 1, 2023 for wind power projects, and therefore were not eligible for the incentive price that the government announced to encourage investment in renewable energy.

The temporary purchase price will help renewable energy developers to partly recoup their investment after a long time waiting for a decision from the government on the purchase price. It’s important to note that this price is only temporary until the industry ministry determines an official rate.