EVN calculated and developed the power generation price framework for wind and solar energy projects

Previously, EVN received document No. 7695/BCT-DTDL, dated November 2, 2023, from MOIT on developing a power generation price framework applicable to various types of power projects. Implementing this direction, on November 9, 2023, EVN requested EPTC to calculate and develop a power generation price framework (may hire consultants if necessary) for the solar power projects (ground-mounted solar power, floating solar power), wind power projects (inland wind, sea and offshore wind power projects) in accordance with Circular No. 19/2023/TT-BCT dated November 1, 2023 of MOIT stipulating methods of developing the electricity generation price framework for wind and solar power projects.

As we all know, before issuing Circular No. 19, MOIT carried out the public opinions comments on the Government Electronic Information Portal and a number of official electronic information sites on this content.

In principle, developing prices for wind and solar power projects is to solve values from the minimum value (0 VND/kWh) to the maximum value and that would issue annually. The electricity generation prices for a standard wind and solar power projects is calculated by the average fixed price plus fixed operating and maintaining price.

On the method, the price calculation formula bases on relevant parameters (the fixed investing, operating, maintaining costs, interest for electricity exchanging).

As for the method of developing the electricity generation price framework (similar to the method of developing the price framework applied to transitional projects specified in Circular No. 15/2022/TT-BCT), the only difference on parameter selection for electing input parameters to calculate price framework, concreting as follows:

Firstly: Parameters of installed capacity, project economic life, debt repayment period, equity/loan ratio, profit margin, standard distribution coefficient corresponding to expected electricity for wind power, regulated ions in Circular No. 15/2022/TT-BCT.

Secondly: The investment rate parameters, foreign currency loan ratio, O&M cost ratio and calculated parameters for the standard average power output over in many years of wind and solar power projects that selected on the basis of consulting data from consulting organizations to ensure universality and update of data from around the world, instead of using past data of power projects.

Thirdly: Domestic and foreign currency loan interest rates are determined according to statistical data of credit institutions. As for the order of developing and promulgating the power generation price framework: Before November 1 every year, EVN is responsible for calculating, or may hire a consultant to select a standard set of parameters for standard wind and solar power projects and calculate the electricity generation prices of standard wind and solar power projects according to regulations.

Proposing to select the parameters for standard wind and solar power projects to calculate the power generation price frame and prepare documents to calculate the power generation price framework for the solar power projects (ground-mounted, floating solar power projects) and the wind power projects (on land, at sea, offshore) according to prescribed in Article 11 of this Circular and submitted to MOIT for approval.

Within 5 working days (from the date of receiving the document for calculating the electricity generation price framework mentioned in Point b, Clause 2 of this Article), the Electricity Regulatory Authority is responsible for checking the details of the document content and calculating the fullness of the document.

In necessary case, the Electricity Regulatory Authority shall issue a written request to EVN to amend, supplement, or clarify the contents in the document. But no later than 15 working days (from the date of receiving the request to amend, supplement, or clarify the contents in the records of the Electricity Regulatory Authority), EVN is responsible for sending a written explanation report. Present the content in the document upon request.

In case of receiving a valid document and a report explaining and clarifying the contents of EVN's document, within 20 working days (from the date of receiving the document), the Electricity Regulatory Authority is responsible for organizing to appraise the electricity generation price framework submitted by EVN.

In the necessary case, the Electricity Regulatory Authority will organize for taking opinions on the electricity generation price framework through the Advisory Council established by MOIT, no later than 15 working days (from the date of organizing the appraisal of the electricity generation price framework ).The Electricity Regulatory Authority is responsible for submitting to the Minister of Industry and Trade for approval of the electricity generation price framework for this type of solar power projects (land and floating solar power projects) and wind power projects (onshore, at sea, offshore projects for the next year and will announce on the website of the Electricity Regulatory Authority. In case the next year's electricity generation price framework has not been announced, it is allowed to temporarily apply the most recently effective electricity generation price framework.