Ministry of Industry and Trade: Reviewing power projects enjoying incorrect preferential FIT prices for recovery

Renewable power projects under inspection that enjoy preferential FIT prices that are not in accordance with regulations will have their electricity bills recovered through offset payments for electricity purchases.

Many investors in renewable energy projects are waiting for transitional price negotiations but are facing many difficulties. In the photo: a renewable energy project has submitted documents and is waiting for price negotiations - Photo: N.KH.

The Ministry of Industry and Trade has just reported to Permanent Deputy Prime Minister Nguyen Hoa Binh on the plan to implement the Government's resolution on removing obstacles and difficulties for renewable energy projects.

Will supplement planning, remove land procedures

The project's removal is carried out on the basis of the resolution of the 2024 regular Government meeting, the Government agrees in principle to remove difficulties and obstacles for renewable energy projects subject to inspection.

Regarding the issue of planning supplements, the Government Inspectorate stated that the Ministry of Industry and Trade approved, supplemented and advised the Prime Minister to approve 154 solar power projects with a total capacity of 13,837 MW without any basis or legal basis for planning.

With this conclusion, the Ministry of Industry and Trade recommends that the Prime Minister issue a document or decision to update the list of solar power projects in the power source structure until 2030 according to the 8th power plan.

Among these, projects that violate regulations related to projects that violate regulations on national defense and security, planning of key national projects and works will be eliminated. Projects that have been reviewed for socio-economic efficiency will be updated for dual-use planning.

For projects with problems related to land procedures, they will be allowed to complete them according to regulations and the implementing unit will be the provincial People's Committee. For projects with problems related to mineral reserves, irrigation, and forest land, the province will coordinate to evaluate, resolve, and report issues beyond its authority. For projects that have not completed construction acceptance, they will also be allowed to complete the procedures according to regulations.

One issue of concern is the handling of FIT prices (preferential prices). For projects that do not meet the conditions to enjoy this price, the Ministry of Industry and Trade said that projects that do not meet the conditions to enjoy FIT prices will have to determine the electricity purchase and sale price according to regulations.

Power projects enjoying preferential FIT prices that are not in accordance with regulations will have to have their prices re-determined.

At the same time, recover the preferential FIT prices that have been incorrectly enjoyed through offset payments for electricity purchases. The solution is based on optimization to analyze, evaluate, and compare socio-economic benefits, minimizing disputes, complaints, and impacts on the investment environment.

To handle this, the Ministry of Industry and Trade proposed a plan that Vietnam Electricity Group (EVN) take the lead and coordinate with project investors to determine conditions for enjoying preferential prices; for projects not entitled to this price, EVN reports to competent authorities as a basis for offsetting payment for electricity purchases.

For rooftop solar power projects built on agricultural and forestry land, the Ministry proposed that EVN review and make a list of projects to report to the provincial People's Committee, and determine the land for farming and cultivation. If land violations are determined, the project will not be entitled to FIT prices and must re-determine the electricity purchase and sale price.

According to the Ministry of Industry and Trade, in the process of resolving difficulties and problems of wind and solar power projects, in cases beyond their authority, agencies will send a summary report to the Ministry for the Steering Committee to consider and resolve. At the same time, the Ministry recommends that the Permanent Deputy Prime Minister direct ministries, branches and localities to proactively resolve problems.

Source: https://tuoitre.vn/bo-cong-thuong-ra-soat-du-an-dien-huong-gia-fit-uu-dai-khong-dung-de-thu-hoi-20241226081833783.htm