{"id":19816,"date":"2025-05-02T18:00:02","date_gmt":"2025-05-02T10:00:02","guid":{"rendered":"https:\/\/sia.net.tw\/vietnams-solar-feed-in-tariffs-in-2025-incentivizing-energy-storage\/"},"modified":"2025-06-11T17:02:19","modified_gmt":"2025-06-11T09:02:19","slug":"vietnam-introduces-2025-solar-feed-in-tariffs-to-promote-energy-storage-integration","status":"publish","type":"post","link":"https:\/\/sia.net.tw\/en\/vietnam-introduces-2025-solar-feed-in-tariffs-to-promote-energy-storage-integration\/","title":{"rendered":"Vietnam Introduces 2025 Solar feed-in tariffs (FiTs) to Promote Energy Storage Integration"},"content":{"rendered":"

April 2025 | Southeast Asia Impact Alliance<\/strong><\/p>\n

Vietnam is taking another step toward modernizing its renewable energy sector by unveiling updated feed-in tariffs (FiTs) for solar power, with a notable emphasis on encouraging battery energy storage systems (BESS). This policy move, effective throughout 2025, was formalized through Decision 988\/QD-BCT issued by the Ministry of Industry and Trade (MOIT), building upon Circular 09\/2025\/TT-BCT. These updated FiTs aim to enhance grid reliability while aligning with the nation\u2019s broader energy transition strategy.<\/p>\n

Key Features of the 2025 FiT Framework<\/strong><\/h3>\n

The most significant development in this update is the introduction of differentiated tariffs for solar power projects that incorporate battery storage. For the first time, solar plants equipped with BESS will be eligible for higher rates to compensate for the added complexity and investment costs. Tariff levels are also region-specific, taking into account solar radiation potential in Northern, Central, and Southern Vietnam.<\/p>\n

Power producers will continue to sign long-term power purchase agreements (PPAs) with Vietnam Electricity (EVN), the state utility, under existing contractual frameworks.<\/p>\n

Context: Evolving Renewable Energy Policy<\/strong><\/h3>\n

Vietnam\u2019s FiT scheme has been instrumental in driving clean energy development since its introduction. Over the years, the policy has undergone several revisions to better reflect market dynamics and infrastructure needs. In 2023, regulatory updates laid the groundwork for a more flexible pricing system, covering both solar and wind energy, including legacy exemptions for older projects.<\/p>\n

The current pricing mechanism defines a tariff range, with a maximum ceiling adjusted annually by EVN and the Electricity Regulatory Authority of Vietnam (ERAV), based on market and technical inputs.<\/p>\n

2025 Solar Tariff Highlights<\/strong><\/h3>\n

The newly approved tariff levels vary based on system type and regional solar intensity. Projects that include energy storage receive a premium compared to those without. The maximum feed-in tariffs (FiTs) rates (excluding VAT) for different configurations are as follows:<\/p>\n\n\n\n\n\n\n\n
Region<\/th>\nGround-Mounted (No BESS)<\/th>\nGround-Mounted (With BESS)<\/th>\nFloating (No BESS)<\/th>\nFloating (With BESS)<\/th>\n<\/tr>\n<\/thead>\n
North<\/td>\nVND 1,382.7 (US$0.053)\/kWh<\/td>\nVND 1,571.98 (US$0.060)\/kWh<\/td>\nVND 1,685.8 (US$0.065)\/kWh<\/td>\nVND 1,876.57 (US$0.075)\/kWh<\/td>\n<\/tr>\n
Central<\/td>\nVND 1,107.1 (US$0.043)\/kWh<\/td>\nVND 1,257.05 (US$0.048)\/kWh<\/td>\nVND 1,336.1 (US$0.051)\/kWh<\/td>\nVND 1,487.18 (US$0.057)\/kWh<\/td>\n<\/tr>\n
South<\/td>\nVND 1,012 (US$0.039)\/kWh<\/td>\nVND 1,149.86 (US$0.044)\/kWh<\/td>\nVND 1,228.2 (US$0.047)\/kWh<\/td>\nVND 1,367.13 (US$0.053)\/kWh<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

To qualify for BESS-specific tariffs, projects must meet technical thresholds such as a storage capacity equal to at least 10% of the plant\u2019s capacity and a minimum 2-hour discharge capability<\/strong>.<\/p>\n

Incentives for New Energy Projects<\/strong><\/h3>\n

Beyond the feed-in tariffs (FiTs), Vietnam is also offering policy incentives to catalyze investments in innovative energy solutions. According to Decree 58\/2025\/ND-CP, projects involving 100% green hydrogen or green ammonia can access preferential treatment, including:<\/p>\n