Power Sector Flash Note - New prices approved for renewable power

On January 7, 2023, the Ministry of Industry and Trade (MoIT) released Decision 21/QD-BCT announcing new prices for “transitional solar and wind power plants,” which are ~17%-29% lower vs the previous Feed-In-Tariffs (FiT). Transitional solar and wind power plants include 4,000 MW of wind power capacity that finished construction but missed the October 2021 deadline for a favorable FiT, in addition to new wind power projects that have already secured investment approval and are under construction. We also expect the same mechanism for completely-new renewable power projects. Furthermore, we believe the new prices will offer huge growth potential for the renewable power sector — especially onshore wind power (see page 2).

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