In brief

Among other renewable power sources, rooftop solar (RTS) power has increasingly become an important power supply source in Vietnam in recent years. However, the implementation of the PDP8, demands some changes to policies and regulations on the development of RTS power. In this update, we provide an overview of the RTS power development in Vietnam from a regulatory and legal perspective, along with an analysis of key legal considerations for the development of new RTS power projects in Vietnam.

Key takeaways

According to the latest drafts of the PDP8 Implementation Plan and New RTS Mechanism, the MOIT proposes each province select the specific RTS power systems to be developed. In particular, the development of grid-connected RTS power for on-site self-consumption in each province will be subject to the capacity limit allocated to each province to be approved under the PDP8 Implementation Plan, based on the total installed capacity of 2,600 megawatts nationwide, to ensure the safety of the national grid and the power system. On the other hand, the development of off-grid RTS power for on-site self-consumption will not be subject to similar limitation.

In this legal update, we discuss key regulatory and legal developments for RTS projects in Vietnam, including:

• Market outlook and policy orientation
• Key legal considerations for RTS power development
  • Lack of a clear legal framework
  • Foreign ownership caps
  • Tax incentives
  • Grid connection
  • Key licenses and approvals
  • Contract execution

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