15 renewable energy projects have had their estimated prices approved by the Ministry of Industry and Trade

Agree on temporary pricing for renewable energy projects.

Speaking to VTC News on the morning of May 21st, Mr. Tran Viet Hoa, Director of the Electricity Regulatory Authority ( Ministry of Industry and Trade ), stated that the provisional prices for the projects will be applied until EVN and the investors reach an agreement on the official price.

"The provisional price for these projects is 50% of the price framework for transitional renewable energy projects set by the Ministry of Industry and Trade. These 15 projects are currently finalizing their documentation to generate electricity and connect to the grid," Mr. Hoa said.

According to the Ministry of Industry and Trade's electricity pricing framework, the electricity purchase price for transitional projects ranges from 1,508 to 1,816 VND per kWh, while the provisional price for these projects is approximately 754 to 908 VND per kWh (excluding VAT).

According to Mr. Hoa, as of May 19, 2023, out of 37 negotiation dossiers submitted by investors to EVN, 15 wind and solar power plants with a total capacity of approximately 1,200 MW have had their provisional prices agreed upon by the Ministry of Industry and Trade (including 3 solar power plants, 7 onshore wind power plants, and 5 offshore wind power plants).

In addition, the investor and EVN have agreed on a provisional price for 06 power plants, and the necessary documents are expected to be finalized and submitted to the Ministry of Industry and Trade next week.

15 renewable energy projects have had their provisional prices approved by the Ministry of Industry and Trade (Photo: Ministry of Industry and Trade).

Regarding the method of calculating electricity prices, 24 investors have agreed to apply a similar discounted cash flow method as guided by Circular No. 57/2020/TT-BCT dated December 31, 2020, of the Ministry of Industry and Trade.

"This is a positive sign, demonstrating the negotiation efforts of the investors and Vietnam Electricity Group in the spirit of harmonizing interests and sharing risks between the parties, as directed by the Prime Minister ; contributing to reducing electricity supply tensions and avoiding waste of social resources and natural resources," Mr. Hoa emphasized.

However, out of the 85 power plants designated for transition, 48 have yet to submit negotiation documents to EVN, and 11 documents still require further supplementation and completion. Some investors were requested to supplement their documents at the end of March, but after two months, they still haven't done so.

"This is the time when investors need to urgently complete procedures and submit documents so that electricity price agreements are not prolonged, shortening the time to bring these projects into operation, and gradually solving the business problems of enterprises," Mr. Hoa said.

Complete the legal procedures and connect to the national power grid as soon as possible.

According to Mr. Hoa, in order to mobilize power plants in general, and renewable energy plants in particular, to operate and generate electricity for the national grid, the project must comply with current legal regulations in the fields of planning, land, environment, construction, fire prevention and control, etc.

In the electricity sector, according to the Electricity Law, electricity projects must obtain an electricity operation license before being put into operation. However, according to statistics, only 16 out of 85 renewable energy power plants (approximately 18.8%) have been granted electricity operation licenses; 12 plants have had their applications submitted by investors and are currently completing their applications on the Ministry of Industry and Trade's online public service portal.

The Ministry of Industry and Trade's approval of provisional prices has somewhat alleviated the difficulties of electricity shortages during peak seasons and encouraged businesses to invest in renewable energy (Photo: Investment Newspaper).

"For transitional factories with records on the Public Service Portal, the Ministry of Industry and Trade has been urgently carrying out assessment and on-site inspections to ensure the rights of investors," Mr. Hoa shared.

Based on the data on electricity operating licenses issued, Mr. Hoa concluded that investors have not yet paid sufficient attention to completing the legal documentation for obtaining electricity operating licenses.

"Some investors said that previously they believed they needed to agree on a provisional price/negotiate the official electricity price before being eligible to submit an application for a permit; some investors, although aware of the regulations, admitted to being slow in submitting their permit applications, 'waiting' until they agreed on a provisional price before speeding up the process of completing the application," Mr. Hoa said.

According to guidance from the Ministry of Industry and Trade, the process of agreeing on temporary prices and preparing applications for electricity operation licenses through the Ministry's online public service portal needs to be carried out simultaneously and as urgently as possible by investors, in strict compliance with relevant legal regulations, to ensure their rights and obligations under the law.

According to the regulations in the Decrees guiding the implementation of the Electricity Law, projects must fully meet the conditions regarding electricity development planning; design and construction of project components according to the approved design; inspection and acceptance meeting the requirements as prescribed; and meeting the human resource requirements for technical management and operation teams, etc.

The procedures and required documents for applying for licenses for renewable energy power plants have been detailed in Circular No. 21/2020/TT-BCT dated September 9, 2020, of the Ministry of Industry and Trade.

"To resolve obstacles and difficulties so that investors can quickly bring renewable energy power plants into operation, avoid wasting resources and investment costs of society, and at the same time supplement clean electricity for the national power system, it is essential to have the joint efforts of the government, businesses, and EVN, in coordination with the Ministry of Industry and Trade, in the spirit of upholding the law," Mr. Hoa emphasized.

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Source: https://vtc.vn/15-du-an-nang-luong-tai-tao-duoc-bo-cong-thuong-phe-duyet-gia-tam-tinh-ar784144.html