Unified interim pricing for renewable energy projects
Responding to VTC News on the morning of May 21, Mr. Tran Viet Hoa - Director of the Electricity Regulatory Authority (Ministry of Industry and Trade) - said that the provisional prices of the projects will be applied until EVN and investors reach an official price agreement.
"The estimated price of the projects is 50% of the price frame for transitional renewable energy projects of the Ministry of Industry and Trade. These 15 projects are completing documents to generate electricity to the grid," said Mr. Hoa.
According to the electricity price framework of the Ministry of Industry and Trade, the electricity purchase price of transitional projects ranges from 1,508-1,816 VND per kWh, the provisional price of the above projects is about 754 - 908 VND per kWh (excluding VAT).
Also according to Mr. Hoa, as of May 19, 2023, out of 37 negotiation documents that investors sent to EVN, there were 15 transitional wind and solar power plants with a total capacity of about 1,200 MW that had been agreed upon by the Ministry of Industry and Trade for temporary prices (including 03 solar power plants, 07 onshore wind power plants and 05 offshore wind power plants).
In addition, the Investor and EVN have agreed on temporary prices for 06 factories, and are expected to complete the documents to submit to the Ministry of Industry and Trade next week.
15 renewable energy projects have had their estimated prices approved by the Ministry of Industry and Trade (Photo: Ministry of Industry and Trade).
Regarding the method of calculating electricity prices, 24 Investors have agreed to apply the similar cash flow discount method according to the instructions in Circular No. 57/2020/TT-BCT dated December 31, 2020 of the Ministry of Industry and Trade.
“This is a positive signal, demonstrating the negotiation efforts of the Investors and Vietnam Electricity Group in the spirit of harmonizing interests and sharing risks between the parties, following the direction of the Prime Minister; contributing to reducing the tension in electricity supply, avoiding waste of social resources and natural resources,” Mr. Hoa emphasized.
However, there are still 48 out of 85 transitional power plants whose investors have not submitted negotiation documents to EVN, 11 documents still need to be supplemented and completed. Some investors have been asked to supplement documents since the end of March but after 2 months, they have not been able to supplement.
“This is the time when investors need to urgently complete procedures and submit documents so that the electricity price agreement is not prolonged, shortening the time to put these projects into operation, and gradually solving the business problems of enterprises,” said Mr. Hoa.
Complete legal procedures, soon connect to the national grid
According to Mr. Hoa, in order to mobilize power plants in general and transitional renewable energy plants in particular to operate and generate electricity to the national grid, the project must comply with current legal regulations in the fields of planning, land, environment, construction, fire prevention and fighting, etc.
In the electricity sector, according to the Electricity Law, electricity projects must be granted an electricity operation license before being put into operation. However, according to statistics, only 16/85 transitional renewable energy power plants (accounting for about 18.8%) have been granted an electricity operation license; 12 plants have had their investors submit their documents and are completing their documents on the online public service portal of the Ministry of Industry and Trade.
The Ministry of Industry and Trade's approval of provisional prices has partly resolved the difficulty of electricity shortages during peak seasons and allowed businesses to invest in renewable energy (Photo: Investment Newspaper).
“The Ministry of Industry and Trade has urgently carried out appraisal and on-site inspection of the transitional factories with profiles on the Public Service Portal to ensure the rights of investors,” Mr. Hoa shared.
From the data on the granted electricity operation licenses mentioned above, Mr. Hoa commented that the completion of legal documents to grant electricity operation licenses has not received due attention from investors.
“Some investors said that they previously believed that they needed to agree on a provisional price/negotiate an official electricity price to be eligible to submit a license application; some investors, although aware of the regulations, admitted that they were still slow in submitting their license applications, “waiting” until a provisional price was agreed upon to speed up the process of completing the application,” said Mr. Hoa.
According to the guidance from the Ministry of Industry and Trade, the negotiation of temporary prices and the preparation of dossiers for granting electricity operation licenses on the Ministry of Industry and Trade's online public service portal need to be carried out by investors in parallel, as quickly as possible, and in accordance with the guidance of relevant legal documents, to ensure rights and obligations before the law.
According to the provisions of the Decrees guiding the implementation of the Electricity Law, projects must fully meet the conditions on electricity development planning; design and construct project items according to approved designs; inspection and acceptance must meet the requirements according to regulations; meet the human resource conditions for technical management and operation teams, etc.
The procedures and dossier components for applying for a license for renewable energy power plants have been detailed in Circular No. 21/2020/TT-BCT dated September 9, 2020 of the Ministry of Industry and Trade.
“To remove obstacles and difficulties for investors to quickly put renewable energy power plants into operation, avoid wasting resources and social investment costs, and at the same time supplement clean power sources for the national power system, it is necessary for the government and businesses to cooperate with EVN and the Ministry of Industry and Trade in the spirit of the rule of law,” Mr. Hoa emphasized.
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