Vietnam sets new rules to reward clean energy producers - Asia Property Awards
Published November 24, 2025
Vietnam Implements New Regulations to Incentivize Clean Energy Producers
Vietnam has announced a set of new regulations aimed at rewarding producers of clean energy. The initiative is part of the country's broader strategy to transition to renewable energy sources and reduce reliance on fossil fuels. This regulatory framework is expected to enhance the investment climate for renewable energy projects, thereby supporting the government's commitment to sustainable development.
The Ministry of Industry and Trade (MOIT) has outlined the new rules in Decision No. 21/QD-BCT, which was officially issued on January 12, 2023. The decision establishes a feed-in tariff (FiT) mechanism for various renewable energy sources, including wind, solar, and biomass. This mechanism is designed to guarantee a fixed price for electricity generated from these sources, providing a stable income for producers and encouraging further investment in the sector.
Under the new regulations, the FiT for solar power projects has been set at 1,620 VND (approximately 0.07 USD) per kilowatt-hour for ground-mounted solar farms and 2,086 VND (about 0.09 USD) per kilowatt-hour for rooftop solar installations. For wind energy, the FiT is established at 1,927 VND (around 0.08 USD) per kilowatt-hour for onshore wind farms and 2,223 VND (approximately 0.09 USD) per kilowatt-hour for offshore wind projects.
In addition to the FiT, the regulations also include provisions for biomass energy projects, which will receive a tariff of 1,400 VND (approximately 0.06 USD) per kilowatt-hour. These tariffs are crucial for attracting both domestic and foreign investments into Vietnam's renewable energy sector.
The Vietnamese government aims to achieve a renewable energy share of 20% in the national power generation mix by 2030, a significant increase from the current levels. The new regulations are expected to play a vital role in reaching this goal, as they provide a clear financial incentive for clean energy producers.
Vietnam's renewable energy landscape has been rapidly evolving in recent years. The country has witnessed a surge in solar and wind energy projects, driven by favorable government policies and a growing demand for clean energy. According to the latest data from the Electricity of Vietnam (EVN), the total installed capacity of renewable energy reached approximately 20,000 megawatts (MW) by the end of 2022, accounting for about 30% of the total electricity generation capacity.
Despite the progress, challenges remain in the implementation of renewable energy projects. The MOIT has acknowledged issues related to grid capacity and the integration of renewable energy into the national power system. To address these challenges, the government is working on enhancing grid infrastructure and developing energy storage solutions to ensure a stable supply of electricity from renewable sources.
The new regulations also emphasize the importance of environmental sustainability and social responsibility in the development of renewable energy projects. Producers are encouraged to adopt best practices in environmental management and to engage with local communities to promote sustainable development.
As Vietnam continues to advance its renewable energy agenda, the government is actively seeking partnerships with international organizations and foreign investors. The new rules are expected to attract significant foreign direct investment (FDI) into the renewable energy sector, further bolstering the country's economic growth and contributing to its climate goals.
In conclusion, Vietnam's new regulations to reward clean energy producers mark a significant step towards achieving a sustainable energy future. By establishing a clear framework for feed-in tariffs and promoting investment in renewable energy projects, the government is positioning the country as a leader in the renewable energy sector in Southeast Asia.
As the global demand for clean energy continues to rise, Vietnam's proactive approach to incentivizing renewable energy production will not only help meet domestic energy needs but also contribute to the global fight against climate change. The success of these new regulations will be closely monitored as the country aims to balance economic growth with environmental sustainability in the years to come.
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