Phu My solar power plant in central region. (Photo: BCG)
Vietnam’s government is conducting a comprehensive review of its feed-in tariff (FIT) regulations, a move that could significantly cut revenue for some operating renewable energy projects.
This has sparked concern among industry players, who have filed a petition through business chambers to the National Assembly. They accuse state-owned enterprises of breaching contractual agreements, warning that 173 solar and wind power projects across the country face the risk of bankruptcy or even market exit.
FIT calculation errors lead to industry backlash
Last year, Vietnam’s Government Inspectorate found that certain solar projects in Ninh Thuan province had received FIT rates that did not comply with regulations. This resulted in an additional cost of VND 1.48 trillion (about USD 57.7 million) for state-owned Vietnam Electricity (EVN). Consequently, the Ministry of Industry and Trade (MOIT) was instructed to review and rectify affected projects.
