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Vietnam Energy Forum

The MOIT requests to handle the 'stalemate' at the transitional wind and solar power projects

 - After the conference between the Ministry of Industry and Trade (MOIT), the Electricity of Vietnam (EVN) and the investors of the transitional renewable energy (RE) projects, in May 24 and 25, 2023, MOIT issued 2 documents for guiding to remove deadlock in transitional wind and solar power projects.

Specifically, on May 24, 2023 MOIT sent a document to EVN on negotiating temporary prices of transitional power plants. In this document, MOIT requested EVN to urgently negotiate with investors of the transitional solar and wind power plants with temporary prices and put them into operation when they completed construction investment, and the legal documents as prescribed.

After negotiating and agreeing on the prices, payment will be made according to the official prices from the date of generation to the grid. EVN affirmed that it always maximally supports investors in order to complete project documents to ensure compliance with regulations, so that the process of working and negotiating between electricity buyers and sellers can take place as quickly as possible.

EVN is willing to work even on holidays to speed up negotiations. According to EVN, a number of the projects currently have many legal problems. Most of the projects no perfect and lack various legal procedures, in which the most difficulties and obstacles related to land for project implementation. In case the investor does not complete the legal issues, and does not fully comply with the provisions of the law, it will be very difficult for EVN to mobilize electricity from these projects, because that is no different from cooperation in violation of the law.

On May 25, 2023 MOIT issued a document on the implementation of Notice No. 182/TB-VPCP dated May 17 by the Government Office to the People's Committees of the provinces and cities, provincial Departments of Industry and Trade, EVN, and Department of Electricity Power and Renewable Energy and the Electricity Regulatory Authority. In this document, MOIT requested EVN to urgently implement the following contents:

Firstly: For projects that have completed construction investment and completed legal documents according to regulations, EVN must urgently negotiate with investors of the transitional wind and solar power plants with temporary prices and put them into operation for generating electricity on the power grid.

Secondly: For the transitional power plants that have been approved by MOIT with temporary prices, EVN requested to urgently sign power purchase agreement (PPA) and review procedures to soon put them into operation and generate electricity on the grid. With the remaining power plants, EVN must urgently negotiate the temporary prices with the investors before May 27 to submit it to MOIT for approval and concurrently complete the procedures for signing the PPA.

On the other hand, EVN should direct its member units to coordinate with investors to complete legal procedures before May 27, and complete the tests according to 25/QD-DTDL dated March 16 of the Electricity Regulatory Authority before May 27 for power plants that have registered for testing. Reviewing test results of power plants, ensuring appropriate in accordance with relevant technical requirements and regulations.

EVN would maximally examine the documents submitted by investors and review the requirements for the investors on the composition of the electricity price negotiation document, ensuring the simplification of the procedure, but it is tight, reasonable and in accordance with regulations.

MOIT also requested the Electricity and Renewable Energy Department and the People's Committees of the provinces and cities to direct the Departments of Industry and Trade in the provinces with the transitional solar and wind power plants to coordinate with investors to urgently carry out the design and design adjustment (if any) and check the pre-acceptance work according to its competence.

MOIT assigned the Electricity and Renewable Energy Department to be responsible for guiding investors with planning problems in the process of adjusting investment policies. For the Electricity Regulatory Authority, the Ministry requested to urgently grant electricity activity permits for completed projects.

According to EVN on receipting documents, results of negotiation and approval of electricity prices for transitional renewable energy projects as 5:30 pm, May 25, 2023, there were 44/85 renewable energy projects without prices sent documents to the Electricity Trading Company (EVNEPTC) for negotiating electricity prices and PPA. In which there are 28 projects proposed a temporary price equal to 50% of the ceiling prices of the price framework (according to MOIT Decision No. 21). Of which, 19 projects (or part of projects) have been approved by MOIT for temporary prices and signed PPA.

According to EVN, in the process of reviewing documents, negotiations and basing on the conclusion of Deputy Prime Minister Tran Hong Ha in Notice No. 182/TB-VPCP dated May 17, 2023, in 37 the projects submitted the documents on May 24, 202 EVN received a proposal to apply the temporary prices for 24 projects. The two sides met and agreed the following contents:

Firstly: The temporary electricity prices (excluding VAT) are equal to 50% of the ceiling price of the electricity generation price bracket for each type of power plant specified in the Decision No. 21/QD-BCT dated January 7, 2023 of MOIT.

Secondly: The official electricity prices and the balance-sheet of electricity bills will implement follow the guidance/decision of the competent authority.

Regarding the results of negotiations, so far, 19 projects (or part of projects) have been approved by MOIT for temporary prices and signing PPA.

Specifically, the wind power projects including: Nam Binh 1, VPL Ben Tre, Yang Trung, Cho Long, Hung Hai Gia Lai, Lac Hoa 2, Hoa Dong 2, Vien An, Hanbaram, Huong Hiep 1, Tan Phu Dong, Hiep Thanh, Ia Le 1, Huong Linh 7.

The solar power projects including: Phu My 1, Phu My 3, Thien Tan 1.2, Thien Tan 1.3 and solar power plant in Phuoc Minh commune, Thuan Nam district, Ninh Thuan province (450 MWac) with a capacity total of 1,347 MW approved by MOIT ratified through the provisional price.

At present, EVNEPTC and the investors are coordinating to soon sign the PPA.

With the Nhon Hoi wind power project phase 2, with a capacity of 30 MW, the negotiation has been completed and the procedures are being completed to soon submit to MOIT for approving the temporary price.

Besides, there are also 4 projects with a total capacity of 154 MW (including wind power plants: No. 5 - Hanh Hai 2, 3, 4 and Cau Dat), EVN EPTC and the investors both invest and negotiate and review documents for submitting to competent authorities for approval according to regulations.

VietnamEnergy.vn

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