Vietnam: Regulatory outlook and legal considerations for the development of rooftop solar power projects

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.


Contents

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

Click here to access the full alert.


Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.