Ministry of Industry and Trade: Renewable energy has not been mobilized yet due to lack of documents

Many investors in renewable energy projects violate regulations on planning and land, and lack electricity licenses, so they cannot negotiate prices with EVN and mobilize power to the grid.

On May 26, the Department of Electricity and Renewable Energy ( Ministry of Industry and Trade ) said that there are currently 52 wind and solar power projects with a total capacity of 3,155 MW (equivalent to 67% of the transitional projects) that have submitted negotiation documents.

Of these, 42 plants (nearly 2,259 MW) have completed price negotiations with EVN. 36 plants (nearly 2,064 MW) have proposed a temporary electricity price equal to 50% of the price frame as a basis for mobilization. Thus, there are 33 power plants (1,581 MW) that have not yet submitted negotiation documents, accounting for about 33%.

The Ministry of Industry and Trade has approved temporary prices for 19 investors, with a total capacity of nearly 1,347 MW. EVN is completing procedures with 17 other plants after the two sides agreed on temporary prices, and will submit them to the ministry for approval in May.

Stating the reason for the delay in negotiating and operating transitional renewable energy projects , the Ministry of Industry and Trade said that many investors violated legal regulations on planning, land, and construction investment, so they have not met legal procedures.

"Some investors were asked to supplement their documents since the end of March, but after two months they still have not been able to supplement them. Therefore, these projects have not been able to negotiate prices with EVN," said the Ministry of Industry and Trade.

According to the ministry, many investors have not yet completed the legal documents to grant electricity operation licenses for their projects - a necessary procedure under the Electricity Law for electricity projects to be exploited. This is also the reason for the delay in preparing and submitting documents to competent authorities.

As of May 23, only 18 transitional renewable energy projects (nearly 19% of projects) have been granted this license. With 19 power plants with temporary price approval, 68% of projects have electricity operation licenses. Of the 12 transitional projects that have submitted price negotiation documents but have not yet had licensing documents, there are 11 wind power projects and 1 solar power project.

A wind power project in Soc Trang in transition. Photo: Anh Minh — A wind power project in Soc Trang in transition. Photo: *Anh Minh*

Regarding procedures related to EVN, the Ministry of Industry and Trade assigned EVN and investors to complete the connection agreement (if expired) before June 5. For projects registered for testing to serve the recognition of commercial operation (COD), EVN will review the results of the plants to ensure technical and regulatory requirements and complete before June 10.

Negotiate temporary prices and simplify procedures to soon operate and generate electricity with transitional renewable projects, but the Ministry of Industry and Trade said this also needs to be strictly ensured and in accordance with regulations.

The Ministry also urged investors to quickly complete procedures and submit documents so that electricity price agreements are not prolonged, shortening the time to put these projects into operation.

Currently, the total capacity of renewable energy projects that are behind schedule is more than 4,600 MW. Of these, nearly 2,100 MW of 34 transitional projects have completed construction and testing. These projects will not enjoy preferential prices (FIT prices) for 20 years and must negotiate electricity prices with EVN according to the electricity price framework issued by the Ministry of Industry and Trade earlier this year, with prices 20-30% lower than before.

Mr. Minh

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