266 N. H. NGUYEN ET AL.
Table 11.7 PDP7r renewable energy targets for installed capacity and share of
power generation
Targets of
RE for
power
generation
2020
2025
2030
Install
capacity
(MW)
Share in
power
generation
(%)
Install
capacity
(MW)
Share in
power
generation
(%)
Install
capacity
(MW)
Share in
power
generation
(%)
Biomass
–
1.0
–
1.2
–
2.1
Wind
800
0.8
2000
1.0
6000
2.1
Solar
850
0.5
4000
1.6
12,000
3.3
Source Data from Decision No. 428/QD-TTg issued by prime minister in 2016
Promotion Measures
In order to reach these targets, the government is introducing considerable incentives and mechanisms, such as funding and loans for renewable
energy projects, tax exemptions, net metering, FITs, support for local
development of renewable energy technologies and manufacturing of
equipment, power purchase agreements with EVN, the RPS mechanism, and the renewable energy market mechanism. These measures can
be categorized into three main types: (1) financial incentives designed
to improve the financing of projects; (2) fiscal incentives such as tax
exemptions and other tax-related subsidies; and (3) market price support
mechanisms and favorable regulation.
Financial Incentives. Decree No. 75/2011/ND-CP mandated that
projects utilizing any renewable energy source (wind, solar, geothermal,
bioenergy, small hydropower, etc.) will be supported with investment
and export credits covering construction costs for investment: loans up
to 70% of the total investment capital of the project (excluding working
capital), terms up to 12 years with an interest rate equivalent to government bond interest rates. Developers of renewable power project are
responsible for any investment from the connection point back to the
power plant, and the grid operators are responsible for any investment
from the connection point to the grid (either local or national grid under
their control). Developers of renewable power projects do not bear any
fees for grid connection. Renewable energy scientific research and technology development programs also receive financial support from the
government.
Table 11.7 PDP7r renewable energy targets for installed capacity and share of
power generation
Targets of
RE for
power
generation
2020
2025
2030
Install
capacity
(MW)
Share in
power
generation
(%)
Install
capacity
(MW)
Share in
power
generation
(%)
Install
capacity
(MW)
Share in
power
generation
(%)
Biomass
–
1.0
–
1.2
–
2.1
Wind
800
0.8
2000
1.0
6000
2.1
Solar
850
0.5
4000
1.6
12,000
3.3
Source Data from Decision No. 428/QD-TTg issued by prime minister in 2016
Promotion Measures
In order to reach these targets, the government is introducing considerable incentives and mechanisms, such as funding and loans for renewable
energy projects, tax exemptions, net metering, FITs, support for local
development of renewable energy technologies and manufacturing of
equipment, power purchase agreements with EVN, the RPS mechanism, and the renewable energy market mechanism. These measures can
be categorized into three main types: (1) financial incentives designed
to improve the financing of projects; (2) fiscal incentives such as tax
exemptions and other tax-related subsidies; and (3) market price support
mechanisms and favorable regulation.
Financial Incentives. Decree No. 75/2011/ND-CP mandated that
projects utilizing any renewable energy source (wind, solar, geothermal,
bioenergy, small hydropower, etc.) will be supported with investment
and export credits covering construction costs for investment: loans up
to 70% of the total investment capital of the project (excluding working
capital), terms up to 12 years with an interest rate equivalent to government bond interest rates. Developers of renewable power project are
responsible for any investment from the connection point back to the
power plant, and the grid operators are responsible for any investment
from the connection point to the grid (either local or national grid under
their control). Developers of renewable power projects do not bear any
fees for grid connection. Renewable energy scientific research and technology development programs also receive financial support from the
government.