Urgent price negotiation, bringing renewable energy projects to the grid

Currently, 84 renewable energy projects (with a capacity of more than 4,670 MW) are behind schedule in commercial operation compared to the plan. Of these, 34 transitional projects (28 wind power projects, 6 solar power projects) with a total capacity of about 2,091 MW have completed construction, testing, and ensured sufficient operating conditions but have not been mobilized, causing great losses to investors and wasting resources. After nearly 2.5 years of waiting for a new price policy for solar power and more than 1.5 years for wind power, investors have requested the Ministry of Industry and Trade to promptly remove difficulties so that the negotiation procedures for power purchase contracts for the projects can be implemented soon.

Regarding these issues, Mr. Tran Viet Hoa, Director of the Electricity Regulatory Authority, Ministry of Industry and Trade, said that in the face of the current tense power supply situation during the peak of the hot season, the Ministry of Industry and Trade has implemented many solutions, including requiring the Vietnam Electricity Group (EVN) to urgently negotiate with investors of renewable energy projects to mobilize this power source soon. "Up to now, the Ministry of Industry and Trade has agreed on the temporary prices of 8 transitional wind and solar power plants. Accordingly, when fully meeting the regulations, these plants will be able to mobilize electricity to the national grid," Mr. Tran Viet Hoa emphasized.

Also related to solving difficulties for renewable energy plants, on May 18, the Government Office issued Notice No. 182/TB-VPCP conveying the conclusion of Deputy Prime Minister Tran Hong Ha at the meeting on implementing the conclusion of the Government leaders regarding the negotiation of electricity prices for wind power and solar power projects that have completed construction investment but have not yet been put into operation. Deputy Prime Minister Tran Hong Ha requested the Ministry of Industry and Trade to urgently amend and supplement Circular No. 15/2022/TT-BCT dated October 3, 2022, stipulating the method of developing a transitional electricity generation price framework for solar and wind power plants; Decision No. 21/QD-BCT dated January 7, 2023 on the transitional electricity generation price framework for solar and wind power plants in accordance with the correct processes, procedures and regulations.

For projects that have completed investment and construction work and completed legal documents according to regulations, the Deputy Prime Minister requested the Ministry of Industry and Trade to urgently issue a document before May 20, 2023, directing EVN to negotiate with investors at a temporary price and operate electricity generation on the grid. After negotiations are completed and prices are agreed upon, payments will be made at the official price from the date of transmission to the grid. For projects that are not yet qualified for operation and still have problems with legal procedures, the Ministry of Industry and Trade and localities where the transitional electricity projects are located must urgently guide enterprises to complete the procedures and documents according to regulations.

For transitional projects that have completed investment procedures and are included in the adjusted Power Plan VII (National Power Development Plan for the 2011-2020 period with a view to 2030) but have expired, the Ministry of Industry and Trade shall issue a document guiding enterprises and localities where the projects are located to comply with the provisions of the law on planning, Resolution No. 61/2022/QH15 dated June 16, 2022 of the National Assembly and relevant regulations. The Ministry of Planning and Investment shall promptly issue a document before May 25, 2023 guiding the People's Committees of provinces and cities to review and decide on adjusting the investment policy for transitional projects with an implementation period exceeding 24 months compared to the period specified in the first investment policy approval certificate in accordance with regulations.

VU DUNG

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