The latest data from Vietnam Electricity Group (EVN) shows that: As of September 8, 80/85 transitional renewable energy projects, with a total capacity of 4,497 MW, have submitted documents to the Electricity Trading Company to negotiate electricity prices and power purchase contracts, an increase of 1 project (Lig Huong Hoa 2 Wind Power Plant) compared to last week.
Of which, 67 projects (total capacity 3,849.41 MW) proposed a temporary price equal to 50% of the ceiling price of the price frame according to Decision No. 21/QD-BCT dated January 7, 2023 of the Ministry of Industry and Trade .
EVN and investors have completed price negotiations and signed power purchase contracts with 62/67 projects; the Ministry of Industry and Trade has approved provisional prices for 58 projects with a total capacity of 3,181.41 MW.
There are 20 factories/parts of factories with a total capacity of 1,171.72 MW that have completed COD procedures and generated commercial electricity to the grid. The cumulative electricity output of transitional renewable energy projects from COD to September 7 reached more than 531 million kWh; of which, the average daily electricity output accounts for about 0.57% of the total mobilized power output.
23 projects have been accepted by competent state management agencies for the construction/part of the construction; 29 projects have been granted electricity operation licenses for the entire plant/part of the plant; 39 projects have had decisions to extend investment policies.
Thus, as of September 8, there are still 5 projects with a total capacity of 236.70 MW that have not yet submitted negotiation documents.
Although many projects have negotiated temporary prices, according to VietNamNet's investigation, 9 months after Decision 21 of the Ministry of Industry and Trade, there is still no project that has officially negotiated prices with EVN.
These are projects that "slide" the preferential support price (FiT) in 2020 and 2021. Therefore, Decision 21 issued by the Ministry of Industry and Trade in January 2023 has provided a framework for electricity generation prices for transitional wind and solar power projects.
According to this decision, the ceiling price for ground-mounted solar power plants is VND1,184.90/kWh; for floating solar power plants it is VND1,508.27/kWh; for inland wind power plants it is VND1,587.12/kWh; for offshore wind power plants it is VND1,815.95/kWh.
However, investors still use the low ceiling price as an excuse to not sign power purchase contracts with EVN. Meanwhile, EVN regularly requests the Ministry of Industry and Trade to provide more specific instructions on price negotiation methods.
The Government Office has sent a document requesting the Ministry of Industry and Trade to review the price framework in Decision 21, and provide guidance on negotiating electricity prices according to this decision. However, up to now, a source said that the Ministry has not yet provided specific guidance to EVN. Therefore, the 80 factories mentioned above have only agreed on a temporary price equal to 50% of the ceiling price in Decision 21.
“It has been nearly a year since Decision 21 was issued by the Ministry of Industry and Trade, but no factory has had an official price yet,” the source admitted.
EVN is still impatiently waiting for the Ministry of Industry and Trade to provide guidance on how to negotiate with investors to get official prices for these projects.
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