New decree incentivises renewable, new energy development

New decree incentivises renewable, new energy development

The research and development of technology in Việt Nam's wind and solar power sectors are being actively encouraged and supported, according to a recently issued government decree.

A renewable energy project in the southern province of Bình Thuận. — Photo nangluongsachvietnam.vn

The decree, which took effect on March 3, outlines several provisions of the Electricity Law regarding the development of renewable and new energy sources. It specifies that projects utilising renewable energy sources with integrated energy storage systems, connected to the national electricity grid, will be prioritised for mobilisation during peak electricity demand hours, in accordance with regulations, excluding self-produced and self-consumed electricity.

The Government is prioritising programmes aimed at the research, development and application of science and technology, as well as the production of solar panels, wind turbines and power conversion equipment.

Furthermore, new energy projects are eligible for preferential policies and support as outlined in Clause 2, Article 23 of the Electricity Law, provided they meet the following criteria: The project must generate energy from 100 per cent green hydrogen, 100 per cent green ammonia, or a 100 per cent mixture of green hydrogen and green ammonia; the project must supply electricity to the national power grid; and the project must be the first of its kind within each new energy category.

Incentives for such projects include exemption from maritime area use fees during the infrastructure construction period (up to three years from the start of construction) and a 50 per cent reduction in these fees for the subsequent nine years.

Additionally, the projects are exempt from land use and land lease fees during the infrastructure construction period, also not exceeding three years from the start of construction. After the exemption period, the reduction or exemption will be carried out in line with relevant investment and land regulations. 

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