Wind and solar investors 'threaten legal action' over tariff pact
ReCharge News|Gareth Chetwynd|Mar 13, 2026
Vietnam is facing tensions with foreign investors in its renewable energy sector due to unilateral changes to previously agreed electricity tariffs, affecting about 12GW of capacity. Several international chambers of commerce have urged the Vietnamese government to resolve the dispute amicably to avoid potential defaults and losses on significant investments. Amidst this, Vietnam is also impacted by a blockade in the Strait of Hormuz, affecting its LNG imports crucial for energy security.
Vietnam is facing tensions with foreign investors in its renewable energy sector due to unilateral changes to previously agreed electricity tariffs, affecting about 12GW of capacity. Several international chambers of commerce have urged the Vietnamese government to resolve the dispute amicably to avoid potential defaults and losses on significant investments. Amidst this, Vietnam is also impacted by a blockade in the Strait of Hormuz, affecting its LNG imports crucial for energy security.
Vietnam is turning to renewables to help solve a potential energy crisis, but relations with foreign investors appear to be deteriorating
A clutch of renewables developers are threatening to take legal action if Vietnam continues to impose electricity tariffs outside the terms that were previously agreed for their wind and solar projects, according to Reuters news agency.
A dispute involving investors from several countries has been simmering since last year when Vietnam unilaterally reduced the subsidised feed-in tariffs agreed on projects amounting to about 12GW of capacity.
A retroactive change to tariffs, which took effect in January 2025, was introduced followed investigations into alleged abuses in accessing the preferential rates.
... more [truncated due to possible copyright]Vietnam is turning to renewables to help solve a potential energy crisis, but relations with foreign investors appear to be deteriorating
A clutch of renewables developers are threatening to take legal action if Vietnam continues to impose electricity tariffs outside the terms that were previously agreed for their wind and solar projects, according to Reuters news agency.
A dispute involving investors from several countries has been simmering since last year when Vietnam unilaterally reduced the subsidised feed-in tariffs agreed on projects amounting to about 12GW of capacity.
A retroactive change to tariffs, which took effect in January 2025, was introduced followed investigations into alleged abuses in accessing the preferential rates.
Negotiations failed to produce an agreement, prompting the chambers of commerce in Vietnam from the European Union, Britain, Japan, South Korea and Thailand to send a joint letter to the government, dated 12 March, Reuters reported.
Authorities were urged to find an amicable solution to a dispute that the signatory chambers said could lead to defaults and significant losses on multibillion-dollar investments in Vietnam's renewable energy sector.
If a solution is not found electricity producers "may seek to enforce remedies, including pursuing dispute resolution in Vietnam or other jurisdictions," according to the document cited.
Iran conflict
Key Asian economies, including Vietnam, Japan, South Korea and the Philippines, are among the most exposed to the current conflict in the Persian Gulf due to their heavy dependence on cargoes of imported liquefied natural gas (LNG).
These countries turned to seaborne LNG to boost their energy security after the last energy global crisis, which was caused by Russia’s invasion of Ukraine in 2022.
Vietnam was one of several nations that invested heavily in LNG regassification infrastructure and began importing seaborne gas for the first time.
But a high proportion of shipments come through the Strait of Hormuz, which is now virtually blocked to shipping. Key LNG supply Qatar has declared a force majeur on all shipments.
Green Vietnam
In recent years, Vietnam has also seen a boom in renewable energy investments, driven by generous feed-in tariffs.
This has not gone well for state-owned power utility EVN which, as the sole buyer of generated electricity, has seen losses pile up as power prices rose.
Reuters said EVN had provided no immediate comment on the matter.
The letter follows several coordinated actions aimed at persuading Vietnam to change course. In May 2026, this case was made in another letter signed by 16 affected companies and firms, including private equity fund Dragon Capital, the Vietnamese subsidiary of Philippines' ACEN energy group, and investors from Thailand, Portugal, the Netherlands, South Korea, Singapore and China.
Vietnam is in the early stages of trying to build up an offshore wind sector too.
These plans have attracted potential investments from major developers such as PNE and Copenhagen Infrastructure Partners.
In the case of PNE, plans to build a 2GW offshore wind farm stumbled when authorities instead opted for a recently created local player.
Vietnamese authorities reportedly selected subsidiary of real estate conglomerate Vingroup to build the project instead.