Decision 08/2020/QD-TTg for biomass power: What could it mean for the sector’s development?
Abstract: Although biomass resource is abundant in Vietnam, the current state of the sector’s development does not match with the potential. To better utilize the domestic biomass potential, in March 2020, the Prime Minister signed Decision No. 08/2020/QD-TTg (Decision 08) on amending and supplementing several articles of the Decision No. 24/2014/QD-TTg dated March 2014 (Decision 24). This policy note highlights important changes in the polices on supporting biomass power development, such as: (i) The supporting mechanisms are only applicable for grid-connected biomass power plants; (ii) Decision 08 revoked article on the supporting mechanisms in tax and land fees exemption/reduction and (iii) Feed-in Tariff for biomass power projects was increasing: FIT for CHP projects has been raised from 5.8 UScent/kWh to 7.03 UScent/kWh. Avoided Cost Tariff (ACT) for non-CHP projects is replaced by a FIT of 8.47 UScent/kWh. The two other important points related to the implications from this new decision to the sector and propositions for the new circular of MOIT providing guidance to implement the Decision 08 would be addressed in this report.
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« Vietnam Initiative for Energy Transition. 2020. Decision 08/2020/QD-TTg for biomass power: What could it mean for the sector’s development?»