Saturday, April 25, 2020

The Viet Nam policy tariff, either selling the total electricity generated or consuming of Photovoltaic project


The development policy of the photovoltaic power plant of government strongly impacts to NPV and LCOE. According to the policy tariff, either selling the total electricity generated or consuming (FiT). The values in different countries with a FiT rate is shown in Table 2, as well as the years supported. From Table 1, the country has the best FiT rate in Japan (0.297 USD/kWh) and the worst FIT rate in the UK (0.052 USD/kWh). However, the simulation tool is playing an essential role in the economic analysis of the renewable energy system.

Table 2. The policy Fit rate of different countries

Reference
Country
FIT rate
 [USD/kWh]
Years Supported 
[years]
[1]


UK
0.052
20
China
0.059
20
Denmark
0.086
1-10
0.058
10-20
Germany
0.131
20
Italy
0.182
20
Malaysia
0.185
25
Thailand
0.21
25
France
0.263
20
Japan
0.297
21
        [2]
Vietnam
0.0985
25

In April 2020, the Vietnamese government issued a new policy for solar power projects as shown in Table 2. According to Table 2, the FIT rate of electricity for rooftop solar power projects is the highest. This indicates that the government is further rooftop solar power projects. Next are floating projects.

Table 2. The FIT rate of the PV project in Vietnam (@4/2020)[3]

PV system
FIT rate [Cent US/kWh]
Rooftop
8.38
PV Farm
7.09
Floating PV Farm
7.69
Reference:
1. Tantisattayakul, Thanapol, and Premrudee Kanchanapiya.: Financial measures for promoting residential rooftop photovoltaics under a feed-in tariff framework in Thailand. Energy Policy, 109, pp.260-269 (2017).
2. Nguyen Xuan Phuc: Decision No. 11/2017/QD-TTg dated April 11th 2017 on Mechanism for solar power development in Vietnam
3. Nguyen Xuan Phuc: Decision No. 13/2020/QD-TTg dated April 6th 2020 on Mechanism for solar power development in Vietnam

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