HCMC – The Ministry of Industry and Trade is drafting a Government decree to implement the Electricity Law, which will promote the development of renewable energy, including offshore wind power.
The draft includes incentives for domestic and foreign investors involved in solar and wind energy projects. Under the proposed policy, solar and wind projects integrated with energy storage systems will be prioritized for connection to the national grid. These projects could benefit from tax reductions, lower investment costs, and streamlined administrative processes.
The draft also encourages research and development in renewable energy technology, focusing on solar panels, wind turbines, and energy conversion systems. Programs advancing these technologies will be prioritized under existing laws.
Projects using entirely green hydrogen or green ammonia, contributing to the national grid, and being the first-of-their-kind in Vietnam will qualify for additional benefits. Incentives include exemptions on sea area usage fees during construction and discounts for the first nine years of operation. Developers will also receive guaranteed purchase agreements for at least 80% of their electricity output.
Foreign investors are allowed up to 65% ownership in projects involving domestic partners. They must meet conditions such as experience in similar projects, financial capacity, and approval from relevant ministries, including Defense and Public Security.
Offshore wind power projects will be selected through bidding, with electricity prices capped at a Government-set ceiling. Winning bids will form the basis for power purchase agreements with the national grid operator.
