Preferential policies for developing renewable energy and new energy

Kinhtedothi - The Government issued Decree No. 58/2025/ND-CP dated March 3, 2025 detailing a number of articles of the Electricity Law on the development of renewable energy and new energy.

Incentive mechanism to support the development of electricity storage systems for renewable energy projects

The Decree stipulates that power projects from renewable energy sources with installed power storage systems and connected to the national power system are given priority to mobilize during peak hours of the power system according to regulations, except for self-produced and self-consumed power sources.

Preferential policies to support appropriate research and development of technology in the fields of wind power and solar power

The Decree stipulates that research and development of technology in the field of wind power and solar power in Vietnam is encouraged and supported for development according to the provisions of Article 8 of the Electricity Law and relevant legal provisions.

The State prioritizes the implementation of programs for research, development, application of science and technology, production of solar panels, wind turbines, and power conversion equipment.

Other preferential and support policies according to current law.

Conditions for applying preferential policies and support for the development of new energy power

According to regulations, new energy power projects are entitled to preferential and support policies stipulated in Clause 2, Article 23 of the Electricity Law when meeting the following conditions:

- New energy power projects produced from 100% green hydrogen or 100% green ammonia or 100% mixture of green hydrogen and green ammonia;

- Project to supply electricity to the national power system;

- First project for each type of new energy electricity.

The above projects enjoy the following preferential mechanisms:

1- Exemption from sea area usage fee during the basic construction period but not exceeding 03 years from the date of commencement of construction. 50% reduction in sea area usage fee within 09 years after the exemption period of the basic construction period;

2- Exemption from land use fees and land rent during the basic construction period but not exceeding 03 years from the date of commencement of construction. After the exemption period of the basic construction period, the exemption or reduction of land use fees and land rent shall be implemented in accordance with the provisions of law on investment and land;

3- The minimum long-term contract electricity output is 70% of the loan principal repayment period but not exceeding 12 years, unless the investor and the electricity buyer have another agreement. This mechanism shall not be applied in cases where the project cannot generate the minimum committed output due to reasons from the project side or due to load demand or technical conditions of the power system that cannot consume all the output;

4- After the deadline specified in points 1 and 3 above, the application of preferential mechanisms shall comply with the legal provisions at the time of termination of the deadline.

This Decree takes effect from March 3, 2025.

Source: https://kinhtedothi.vn/chinh-sach-uu-dai-phat-trien-dien-nang-luong-tai-tao-dien-nang-luong-moi.html