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INVESTMENT CONSULTING SOLAR POWER PROJECTS
Solar power is known as an inexhaustible precious renewable energy source of nature that brings many benefits to humans. In recent years, solar power has developed strongly in Vietnam, making an important contribution to ensuring energy security and reducing greenhouse gas emissions. In this article, Siglaw will advise on investment and development of solar power projects in Vietnam – difficulties, advantages and procedures to understand.
What preferential policies does Vietnam have to attract investment in solar power projects?
Firstly, the Renewable Energy Development Strategy for the period 2015-2030, with a vision to 2050 approved by the Government in September 2015 has set out specific targets, according to which the amount of electricity produced from renewable sources renewable energy will increase from 58 billion kWh in 2015 to 101 billion kWh in 2020; 186 billion kWh in 2030 and 452 billion kWh in 2050.
Secondly, to create motivation and encourage the development of solar power, the Government has had many open policies to facilitate the development of solar power, the Ministry of Industry and Trade has developed and submitted to the Government a series of mechanisms such as: Feed-in-Tariff for solar power, wind power, electricity produced from solid waste, biomass power… The Government also issued other preferential policies for investors such as priority in supply. credit, exemption/reduction of corporate income tax, land rent, use of a sample power purchase agreement, etc.
Third, Mechanism for the development of solar power in Vietnam
- The term of the power purchase agreement for solar power projects is 20 years from the date of commercial operation.
- Import tax exemption for goods, raw materials, supplies and finished products creating fixed assets for solar power projects.
- Exemption of corporate income tax for solar power projects.
- For grid-connected projects: The electricity buyer is responsible for purchasing the entire electricity output from the grid-connected projects with the purchase price of 9.35 UScents/kWh (excluding value added tax, equivalent to 2,174 VND/kWh).
- For rooftop power projects: Implement a net-metering mechanism using a 2-way meter system. During a billing cycle, electricity generated by rooftop projects that is greater than the amount consumed is carried over to the next billing cycle. At the end of the year or at the end of the power purchase and sale contract, the excess generated electricity will be sold to the buyer at the prescribed selling price
Procedures for investment in solar power projects
Setting up a solar power investment project
Solar energy development projects must first be projects under the national solar energy development planning or provincial solar energy development. These plans will be adjusted and supplemented from time to time as required.
If the investor builds the project by himself, he/she must make a report and submit it to the competent authority to verify his/her project and include it in the previous development planning. The Ministry of Industry and Trade will verify and add solar energy projects with a capacity of less than or equal to 50 MW; Submitting to the Prime Minister for approval the further planning of projects with a capacity of more than 50 MW.
Apply for decision on investment policy for solar power project
- Dossier to apply for the decision to approve the investment policy of a solar power project
- a) A written request for implementation of the solar power project investment project, including a commitment to bear all costs and risks if the project is not approved;
- b) Documents on the legal status of the investor of the solar power project;
- c) Documents proving the financial capacity of the solar power project investor, including at least one of the following documents: financial statements of the last 2 years of the investor; commitment to financial support of the parent company; financial institution’s commitment to financial support; guarantee on the financial capacity of the investor; other documents proving the investor’s financial capacity;
- d) Investment project proposal for a solar power project, including the following main contents: investor, investment objective, investment scale, investment capital and capital mobilization plan, location, and duration , implementation progress, information on the current status of land use at the project site and proposed land use needs (if any), labor needs, proposals for investment incentives, impacts , socio-economic efficiency of the project, preliminary assessment of environmental impacts (if any) in accordance with the law on environmental protection.
If the construction law provides for the preparation of a pre-feasibility study report, the investor may submit a pre-feasibility study report instead of the investment project proposal;
- dd) If the investment project does not request the State to allocate or lease land or permit the change of land use purpose, a copy of the paper on land use rights or another document determining the right to use the site shall be submitted. to carry out investment projects;
- e) The explanation of the technology used in the investment project, for the project subject to appraisal and consultation on technology in accordance with the law on technology transfer;
- g) Other documents related to the investment project of the solar power project, requirements on conditions and capacity of the investor as prescribed by law (if any).
- Time limit for processing applications for approval of investment policies for solar power projects
- Up to 65 days for projects that need approval from the Prime Minister;
- Up to 40 days for projects that need approval from the Provincial People’s Committee.
Issuance of Investment Registration Certificate at the Investment Registration Authority (Article 35 Decree 31/2021-ND-CP)
After receiving the Decision approving the policy of the Prime Minister or the People’s Committee of the province, the Investment Registration Authority shall grant the Investment Registration Certificate of the solar power project to the Investor within 05 working days. .
Procedures for applying for an Enterprise Registration Certificate
After being approved for the investment policy and granted the Investment Registration Certificate for the solar power project, the investor shall establish an economic organization and go through the procedures for the issuance of the Certificate of Business Registration in Vietnam. Business registration agency.
- Dossier to establish a solar power business
- Application for business registration
- Company rules
- List of members/ List of founding shareholders and shareholders being foreign investors
- Certified copies of the following documents:
- Personal identification papers of members being individuals (CCCD; valid ID card or passport);
- Establishment decision, enterprise registration certificate or other equivalent documents of the organization and authorization document; Personal identification document of the member being an individual (CCCD; ID card or passport) of the authorized representative of the member being an organization (Members are foreign organizations: A copy of the Business Registration Certificate or equivalent document must be consularly legalized)
- Investment registration certificate;
- Time: 5-7 working days
2.5. Implement procedures for connection, signing of solar power purchase and sale contracts, construction procedures, land, fire prevention and fighting, and environment of the solar power project.
Siglaw’s special offers for customers
- Free consultation on contracts, regulations on enterprise law, investment law of Vietnam.
- Free consultation on issues related to recruitment, use of foreign workers, residence of foreigners in accordance with Vietnamese law.
- Incentives for regular consultation and answers to tax-related issues: Personal income tax, corporate income tax, etc. at the time of consulting on offshore investment projects.
- … And many other added values that exceed customers’ expectations!
Above is the advice of Siglaw Firm on Solar Battery Investment. If you have any questions, please contact:
Phone: (+84) 961 366 238
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