On December 11, 2017, in Hanoi at the working meeting on renewable energy (RE) development between Mr. Tran Tuan Anh, the Minister of Industry and Trade (MoIT) and Mr. Ousmane Dione, the National Director of the World Bank (WB) in Vietnam, Mr. Ousmane Dione asked Vietnam to modify the power purchase agreement (PPA) on RE in accordance with the most common international practice under the neutral jurisdiction.
Mr. Ousmane Dione said, currently WB is trying the best to find the ways to attract the international experts and private capitals for RE market in Vietnam. Therefore, it is suggested that Vietnam should soon create a legal framework, improve mechanisms and policies, firstly the existing regulations on RE prices. Beside the current feed in tariff (FiT) mechanism, the investment in procurement for RE projects through the auction system with samples of the international banks will allow Vietnam to cut the costs.
The Minister Tran Tuan Anh promised to consider this proposal of WB and carefully weigh it for each type of RE and informed that in recent years, the Vietnamese government has paid considerable attention to the development of renewable energy such as issued the strategy of RE development, set specific targets for each type of RE in the National Power Planning No VII (revised project).
In particular, there were set up the mechanisms for stimulating development of wind power (in 2011), biomass power (in 2014) and solar power (in 2017).
The Minister Tran Tuan Anh high appreciated assistance of WB in implementing phase 1 of the renewable energy development projects (REDP) for small hydropower projects and considered the participation of WB in phase 2 of REDP is very necessary as a catalyst to help the domestic banks, investors to respond the environmental requirements. He also asked WB to actively coordinate with the concerned agencies in developing the second phase of REDPs and submit them to the competent authorities for approval to develop them as soon as possible.