<div id="readability-page-1"><div><p>[HANOI] Vietnam’s state utility Vietnam Electricity (EVN) has proposed to slash payments to 173 renewable-energy projects by as much as 43 per cent for the electricity these power plants sold to EVN, during the periods they were deemed to have fallen short of the approval conditions.</p><p>EVN’s move affects projects with a combined capacity of about 12 gigawatts and are worth roughly US$13 billion; these include assets owned by Singapore’s SP Group and Sembcorp.</p><p>This comes as Vietnam seeks to resolve a long-running dispute over eligibility under the country’s earlier feed-in tariff (FiT) regime, under which the state, through EVN, guaranteed fixed and generous tariffs for up to 20 years for qualified solar and wind power plants.</p><p>At meetings held in mid-April with investors, EVN outlined a plan to settle payments for projects that began commercial operations and sold power to the state utility under FiT schemes before they had been granted the necessary construction completion acceptance (CCA) certificates, according to minutes of meetings seen by <em>The Business Times</em>.</p><p>Instead of receiving the full preferential FiT rates stipulated in their earlier power-purchase agreements already signed with EVN, project owners would be paid a transitional tariff of 1,184.9 dong (S$5.7 cents) per kilowatt-hour for the period between their commercial operation date (COD) and the CCA approval dates. </p><p>This is a steep discount from the original FiT rates these projects previously enjoyed – about 43 per cent below the FiT1 rate of 2,086 dong/kWh for those commissioned before Jun 30, 2019. Projects commissioned before Dec 31, 2020 are to get 28 per cent less than the FiT2 rate of 1,644 dong/kWh. </p><div><div><h3>Navigate Asia in<br/>a new global order</h3><p>Get the insights delivered to your inbox.</p></div></div><p>Any difference between payments already made at FiT levels and the lower transitional tariff would be clawed back over time. Plant owners are to repay the amount to the government in equal monthly instalments over a period capped at the interval between their COD and CCA dates.</p><p>Under the proposal, once projects receive CCA approval, payments would revert to the agreed FiT rates for the remainder of the contract term. </p><p>An official from one of the foreign power investors hardest hit because of the scale of its affected projects said: “The impact is quite significant. We’re not happy, but have no intention to pursue complaints or litigation.”</p><div><div><div><p>SEE ALSO</p><div><div><div><div><p><img height="2160" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/3837a5872b8943dfeccfff1ad68c18b31b8ec5a9bd016c7d46c034b8c437b9d4/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="3500" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/3837a5872b8943dfeccfff1ad68c18b31b8ec5a9bd016c7d46c034b8c437b9d4/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Vietnam reboots direct clean-power push after pricing hurdles slow corporate uptake</span></h3><p></p></div></div><div><div><div><p><img height="701" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/34a808844f589693f56b029b2db5938f22191b70a41420ad2927af01273e7c58/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1052" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/34a808844f589693f56b029b2db5938f22191b70a41420ad2927af01273e7c58/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Over 20 power giants including SP Group, Mitsubishi press Vietnam over US$13 billion clean energy row</span></h3><p></p></div></div><div><div><div><p><img height="600" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/239ba6227f3b5ddc08774917243d1a4788ca5e8f40ce6d2b42ed4f85cffeb97d/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1196" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/239ba6227f3b5ddc08774917243d1a4788ca5e8f40ce6d2b42ed4f85cffeb97d/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Singapore’s Sembcorp, SP Group caught in Vietnam’s clean energy U-turn</span></h3><p></p></div></div></div></div></div></div><p>Liquidity pressures are forcing pragmatism.</p><p>“The dispute has dragged on for too long. We just want to resolve this and focus on other work,” he added, noting that the company needed cash flow to settle outstanding debts, especially since EVN has said it would resume full FiT payments from the CCA approval date onward.</p><h2>Years-long dispute over FiT eligibility</h2><p>Between 2017 and 2020, investors rushed to pour billions of dollars into Vietnam’s renewable sector to qualify their projects for FiT incentives.</p><p>A 2023 government review later flagged 173 projects for lacking the required CCAs. The findings led EVN to suspend payments for affected projects and raised the risk that FiT rates could be reduced or revoked.</p><p>Investors have pointed out that the projects previously met all conditions required for COD recognition under EVN’s own guidelines, and noted that no regulation at the time mandated a CCA before COD approval or allowed retroactive tariff adjustments.</p><p>In a letter in November 2025, Singapore’s SP Group and more than 20 foreign power companies urged Hanoi to hold urgent talks, and warned that payment delays tied to the retroactive review had pushed some investors to the brink.</p><p>SP Group has two affected projects with a combined capacity of 100 megawatt-peak, according to the letter. </p><p>Singapore’s energy giant Sembcorp, though not a signatory, also has several solar farms caught in the dispute. In a response to BT in March 2025, the company said that the issue had no material impact on the company’s earnings. </p><p>In March this year, chambers of commerce from the UK, Europe, Japan, South Korea and Thailand also wrote to the Vietnamese government calling for an “effective and amicable” resolution. They warned that the impasse risked triggering financing defaults and forcing companies to publicly disclose in their financial statements significant losses from their multi-billion-dollar investments in Vietnam’s renewable-energy sector.</p><p>No formal resolution from the Vietnamese authorities has been announced so far.</p><p>Thomas Jakobsen, managing director of Indochina Energy Partners (IEP), a solar-power producer, investor and developer active in South-east Asia, told BT earlier this year that the previous FiT regime fuelled “too fast” renewable expansion and<strong> </strong>exposed structural risks by encouraging development beyond official planning targets.</p><p>“It was very clear early on that this type of FiT, as seen in many other countries, would end in heartbreak,” he said.</p><p>He instead gives his support to Vietnam’s latest direct power purchase agreement (DPPA) mechanism, which is a more sustainable, market-based alternative.</p><p>“Investors who stayed disciplined during the FiT era are now well positioned to continue investing in Vietnam’s renewable sector through DPPAs to meet the country’s goal,” he said.</p><div><p>Decoding Asia newsletter: your guide to navigating Asia in a new global order. <span>Sign up here to get Decoding Asia newsletter.</span> Delivered to your inbox. Free.</p></div></div></div>

<p>Vietnam Electricity (EVN) has proposed a 43% cut in payments to 173 renewable energy projects, affecting around 12 gigawatts of capacity worth approximately US$13 billion. This decision arises from a dispute over eligibility under the previous feed-in tariff (FiT) regime. EVN plans to pay a transitional tariff until projects receive construction completion acceptance (CCA) certificates, after which payments will revert to agreed FiT rates. Investors, including Singapore's SP Group and Sembcorp, have expressed concerns over cash flow and potential financial losses due to payment delays and the ongoing dispute.</p>

Vietnam’s EVN suggests steep payment cuts for clean-energy projects in US$13 billion dispute