Vietnam’s state utility EVN has proposed a solution to the feed-in tariff (FiT) dispute. (Photo: iStock)
Vietnam’s long-running feed-in tariff (FiT) dispute has entered a new phase, with state utility EVN proposing to apply “transitional tariffs” to renewable energy projects with controversy. Under the plan, some projects could see tariff cuts of more than 40% compared to FiT levels.
Reactions among international developers are mixed. While some expressed dissatisfaction and signaled no intention to pursue further legal action.
How big is Vietnam’s FiT dispute?
From April 13, EVN held a three-day series of briefings with more than 150 renewable energy developers, aiming to resolve a FiT subsidy dispute that has dragged on for three years.
Unlock the full article to explore three key takeaways:
- EVN's transitional tariff of VND 1,184.9/kWh represents a 43% cut from FiT1 rates and 28% from FiT2
- Some developers won’t sue despite rising cash strain; others propose revised terms
- Developers are optimistic about DPPA, which could drive the next wave of renewable energy