Approved provisional price for 3,181 MW of renewable electricity, only more than 950 MW has been connected to the grid

Of the 85 transitional renewable energy projects, 79 projects with a total capacity of 4,449.86 MW submitted applications to EVN's Electricity Trading Company for electricity price negotiations and power purchase agreements. Of these, 67 projects (total capacity of 3,849.41 MW) requested a provisional price equal to 50% of the ceiling price of the price framework (according to Decision No. 21 of the Ministry of Industry and Trade ).

EVN announced that, to date, the group of investors has completed price negotiations and initialed power purchase agreements (PPAs) for 59 out of 67 projects. Of these, the Ministry of Industry and Trade has also approved provisional prices for 58 projects with a total capacity of 3,181.41 MW.

Phê duyệt giá tạm cho 3.181 MW điện tái tạo, mới có hơn 950 MW lên lưới - Ảnh 1. — The Power Development Plan 8 clearly states that Vietnam's solar power potential is approximately 963,000 MW.

Thus, the electricity output that has been provisionally approved is currently quite high, over 3,181 MW, but the amount of electricity officially supplied to the grid so far, according to records, is only 18 projects with more than 952 MW.

The cumulative electricity output of transitional renewable energy projects from the time of Commercial Operation Date (COD) until August 10th reached approximately 268 million kWh. Of this, the average daily electricity output accounted for about 0.4% of the total mobilized power generation.

Furthermore, the update shows that, among these 85 projects, 22 projects have been inspected and approved by competent state management agencies; 29 projects have been granted power operation licenses for the entire plant/part of the plant; and 38 projects have received decisions to extend investment approval.

However, there are still 6 projects with a total capacity of 284.70 MW that have not yet submitted their negotiation documents.

Previously, regarding 14 solar power projects that were improperly granted preferential FIT rates, which the Ministry of Industry and Trade requested EVN to review and propose solutions for, Government Inspectorate 's inspection conclusion No. 1027 included a section on advising on the issuance of Decision 13/2020 on the mechanism to encourage the development of solar power in Vietnam.

According to this conclusion, although the 9.35 cents/kWh price stipulated in Resolution 115 applies to solar power projects with a design capacity of 2,000 MW, which have been approved by the Prime Minister and are also projects whose planning has been approved by the Prime Minister, the Ministry of Industry and Trade, in Decision 13/2020, advised that the FIT price be applied to "projects already included in the power development plan at all levels," contrary to the content of Resolution 115 and the Government's conclusion in Notice 402.

Consequently, 14 projects were incorrectly subject to the FIT price of 9.35 cents/kWh as stipulated in Resolution 115. Therefore, from 2020 to June 30, 2022, EVN had to pay an additional approximately 1,481 billion VND (estimated figure) compared to payments made to the correct beneficiaries as per Resolution 115.

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