In the first three years, when the policy will be trialed, the customer needs to buy at least 80 percent of the agreed amount of power.
Solar and wind farms with a capacity of 30 megawatts or more can sign these agreements, and need to begin commercial operation within nine months of joining the pilot program.
The program with a total capacity of around 1,000 megawatts is set to start this year and run until 2023. At the end of the trial period the ministry will review it and take a decision on making the arrangement permanent.
The program is being considered amid the challenges solar power plants face in running at full capacity due to the limited capacity of the country’s transmission lines.
Vietnam is set to cut up to 1.74 billion kilowatt-hours of renewable energy in the second half this year to deal with national grid overload, Vietnam Electricity, has announced.