Renewable energy investors propose to keep electricity purchase price unchanged for 173 projects

Many renewable energy projects sell electricity to the grid, but investors are only paid a portion of the sold electricity output - Photo: NGOC HIEN

Investors, investment funds, and the Binh Thuan Wind and Solar Power Association, along with a series of domestic investors, have just signed an urgent petition letter to the Government, the Ministry of Industry and Trade , Vietnam Electricity Group, and relevant authorities regarding the handling method for 173 wind and solar power projects that have had a commercial operation date (COD), but have not yet received a document approving the acceptance results at the time of operation.

Renewable energy investors want to keep preferential electricity purchase prices

Investors said that after the first petition, the Electricity Trading Company (EVNEPTC), a unit under EVN, held several meetings to collect opinions from investors, but EVNEPTC's proposals did not resolve the core issues that investors were concerned about.

Investors believe that the solution proposed by the Power Trading Company is that while waiting for instructions or conclusions from the competent authority, this unit will temporarily pay the electricity bill according to the principle of applying the electricity price equivalent to the fixed preferential electricity purchase price (FIT), or the ceiling price of the transitional price frame in effect at the time the relevant power plant accepts the acceptance; after receiving instructions or conclusions from the competent authority, the parties will "amend the contract" and make payment for the electricity bill according to regulations.

According to investors, the above proposal is contrary to the agreement in the current power purchase contract as well as current laws.

In addition, investors said that there is no legal basis to temporarily withhold part of the electricity purchase price, apply a temporary price list contrary to the previously agreed price list, or require investors to sign amendments to the purchase and sale contract.

In addition, since the electricity bill payment period in January 2025, the Electricity Trading Company has unilaterally withheld a portion of the payment by applying a temporary price list.

Meanwhile, investors believe that revenue from electricity sales is the only source of income that helps investors maintain the operation of power plants, fulfill tax obligations, and pay on time principal and interest on loans to domestic and international banks and financial institutions.

"This situation causes us to violate our obligations to banks and domestic and foreign lending institutions, face the risk of insolvency due to monthly debt repayment pressure and fall into a cash flow shortage, affecting maintenance, repair and operation of the factory, directly threatening the stability and feasibility of our projects as well as our business operations," the investors emphasized.

Therefore, investors recommend that the authorities confirm and implement the commercial operation date as initially approved, pay electricity bills as per the contract and not retroactively determine the commercial operation conditions, preferential electricity purchase and sale prices for projects that have been put into operation...

List of investors, associations and financial institutions that have signed a petition to the Government proposing to keep electricity purchase and sale prices unchanged

Why is there a proposal to recalculate electricity prices?

Recently, the authorities in Vietnam have proposed solutions to overcome the violations of renewable energy projects, which have been specifically concluded by the Government Inspectorate in Conclusion No. 1027.

Of which, 173 solar and wind power plants/parts of solar power plants were recognized for commercial operation date and enjoyed preferential electricity purchase and sale prices without having received written approval from the competent state agency for the results of the investor's construction acceptance.

Among the solutions to remove difficulties for energy projects, the authorities propose that projects that violate the regulations and do not meet the conditions will not enjoy preferential prices and must re-determine the electricity price. At the same time, the preferential FIT prices that have been incorrectly enjoyed will be recovered through compensation and payment for electricity purchases.

Therefore, instead of enjoying high electricity purchase prices of up to 9.35 cents/kWh (equivalent to 2,231 VND/kWh according to FIT 1 price) or 1,692 VND/kWh (equivalent to 7.09 cents/kWh according to FIT 2 price), projects at risk will enjoy the same price as transitional projects, which is no more than 1,184.9 VND/kWh.

Thus, if electricity prices are recalculated, the projects will have their electricity prices reduced by 24-47% compared to the price that Vietnam Electricity Group (EVN) is currently buying.

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NGOC HIEN

Source: https://tuoitre.vn/cac-nha-dau-tu-nang-luong-tai-tao-lai-kien-nghi-giu-nguyen-gia-mua-ban-dien-voi-173-du-an-20250522115423236.htm