In the draft, the Ministry of Industry and Trade proposed that solar and wind power projects with electricity storage systems and connections to the national power grid enjoy many preferential mechanisms.

Specifically, priority is given to mobilizing electricity sources according to current regulations on the electricity system and electricity market.

The electricity storage system of solar and wind power projects is a commodity and product that enjoys preferential tax policies according to the law.

In addition, still enjoy other preferential mechanisms according to current law.

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The Ministry of Industry and Trade has proposed a series of preferential policies and support for renewable energy and new energy projects. Photo: Hoang Ha

In this draft, the Ministry of Industry and Trade has developed many contents about offshore wind power projects, which will be renewable energy projects in the list of industries and professions with special investment incentives such as incentives of exemption from fees for using sea areas during construction and 50% reduction of this amount for 12 years during operation; exemption from land use fees, land rent; long-term minimum contract electricity output is 50%.

If the enterprise is 100% state-owned, it will be exempted from guaranteeing the implementation of the investment project according to the provisions of the Investment Law; the Prime Minister will consider and decide to grant credit exceeding the limit for offshore wind power projects according to the provisions of the Law on Credit Institutions.

When implementing a project, foreign investors must ensure market access conditions for foreign investors, choose the form of investment and carry out investment procedures according to legal regulations, with a maximum capital ownership ratio of 65% when there is participation of domestic investors.

Investors must implement at least one project of equivalent scale in Vietnam or in the world; have financial capacity, capital mobilization plan or loan commitment, human resources, expertise, experience. Have total audited net asset value in the last three years greater than the total expected investment of the project. The project must also have the consensus of the Ministry of National Defense, Ministry of Public Security, Ministry of Foreign Affairs.

This draft also proposes to regulate priority policies and support research and development of appropriate wind and solar power technologies.

For example, research and development of technology in the field of wind power and solar power in Vietnam is encouraged and supported for development according to the provisions of Article 8 of the Electricity Law and relevant legal provisions.

The State will prioritize the implementation of research, development, and application programs for science and technology, the production of solar panels, wind turbines, and power conversion equipment.

However, to be eligible for preferential policies and development support, new energy power projects must meet the following conditions: power projects produced from 100% green hydrogen or 100% green ammonia or a 100% mixture of these two sources; projects supplying electricity to the national power system; and the first project for each type of new energy power.

In case the above projects are clean energy projects in the list of industries and professions with special investment incentives according to the provisions of the law on investment, in addition to the incentive mechanisms and policies according to the law on investment, they will also enjoy the following incentive mechanisms:

  • Exemption from sea area usage fee during construction period. 50% reduction in sea area usage fee within 9 years from the date of operation.
  • Exemption from land use fees and land rent during construction period. After construction period, exemption and reduction shall be implemented according to the provisions of law on investment and land.
  • The minimum long-term contract electricity output is 80% within the loan principal repayment period but not exceeding 12 years for projects selling electricity to the national power system.

According to the Electricity Law, new energy electricity is electricity produced from green hydrogen, green ammonia or other forms of new energy as prescribed by law.

Renewable energy is electricity produced from one or more primary energy sources including: solar energy; wind; ocean energy; energy from water power, including hydropower; biomass energy; energy from waste, except waste from production and business processes using fossil fuels and waste identified as hazardous; other forms of renewable energy as prescribed by law.

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