Hundreds of wind, solar power investors petition Vietnam authorities to uphold feed-in tariffs

Investors and financial institutions related to 173 wind and solar power projects in Vietnam have called on the government to maintain the feed-in tariffs (FIT) and commercial operation dates (COD) previously recognized.

The appeal came in a second urgent petition recently submitted to the government, the Ministry of Industry and Trade, state utility Vietnam Electricity (EVN), and other relevant agencies.

Earlier this year, nearly 30 international and domestic investors, who have poured billions of U.S. dollars into solar and wind power projects in Vietnam, had sent an urgent letter to authorities.

According to the second petition, the COD for these 173 projects was recognized before or during 2021, despite the absence of official construction acceptance documents at the time.

The investors have argued that the legal regulations in effect then did not require such acceptance documents for COD recognition.

However, starting January 2025, EVNEPTC, EVN’s power trading unit, began withholding part of payments and applying temporary tariffs below the contracted FIT rates.

There have been even proposals to retroactively adjust COD dates to the time when acceptance documents were issued, potentially leading to lower electricity prices.

The investors held that these actions not only breach power purchase agreements but also violate the Politburo's Resolution 68-NQ/TW and the government's Resolution 233/NQ-CP, both of which emphasize the principle of non-retroactivity, respect for contracts, and protection of bona fide investors’ rights.

Resolution 68 of the Politburo, Vietnam's highest decision-making body, dated May 4, 2025, clearly identifies the private sector as the most important driving force of the economy. Meanwhile, Resolution 233/NQ-CP, dated December 10, 2024, addresses the resolution of obstacles affecting renewable energy projects.

An international investor explained that revenue from electricity sales is the lifeblood that enables companies to service bank loans, cover operating costs, and meet tax obligations. Any reduction would put them at risk of default and breaking commitments with both domestic and international financial partners, the investor said.

According to statistics, the total affected capacity exceeds 6,000 MWp, with combined investment surpassing $13 billion, including roughly $4 billion in foreign capital from countries such as Japan, Singapore, the UK, France, South Korea, and China.

The investors urged the government to uphold the previously recognized COD, honor FIT payments as stipulated in contracts, and refrain from retroactively applying new regulations.

“The commitment reflects policy consistency, protects national credibility, and attracts sustainable investment in clean energy,” the petition reads.

A conclusion from the Government Inspectorate at the end of 2023 noted that allowing several solar power projects to enjoy the FIT rate of 9.35 U.S. cents per kWh for 20 years was not in compliance with regulations, requiring a recalculation of the electricity purchase price.

Accordingly, the FIT1 rate of 9.35 U.S. cents per kWh may fall to the FIT2 rate of 7.09 cents or even 4.8 cents, down 24-47% from the current rate paid by the Vietnam Electricity (EVN).

The Ministry of Industry and Trade said that the adjusted rate reflects the actual investment and operational costs. However, many businesses argued that this rate is not suitable, given that interest rates in Vietnam are significantly higher than in other countries in the region.