On May 27, the Electricity Trading Company (under Vietnam Electricity Group - EVN) completed negotiations, signed minutes and initialed electricity purchase contracts with 40/40 renewable energy project investors proposing a temporary price of 50% of the ceiling price.
Responding to VTC News on the morning of May 28, Mr. Tran Viet Hoa, Director of the Electricity Regulatory Authority (Ministry of Industry and Trade), said that out of 40 renewable energy projects including wind power and solar power with temporary prices, 19 projects or parts of projects have had their temporary prices approved by the Ministry of Industry and Trade and signed PPAs, 16 projects have been connected to the grid, have been and are being tested, 5 projects have been connected to the national grid with a total capacity of 303 MW, have completed testing, and are generating commercial electricity.
Currently, there are 16 renewable energy transition projects connected to the grid, being tested, and 5 projects put into commercial operation. (Photo: Thanh Nien Newspaper).
"Of the 85 transitional renewable energy projects that have not yet had prices, 53 projects have submitted documents for negotiation, but 40 projects have agreed to apply a temporary price equal to 50% of the ceiling price frame, 13 projects are waiting for official price negotiations according to the ceiling price frame and 32 projects have not submitted documents. According to Decision No. 21, the ceiling price frame for transitional solar power is 1,185-1,508 VND/kWh, wind power is 1,587-1,816 VND/kWh. We have repeatedly requested investors to urgently submit documents and complete legal procedures to negotiate with EVN," said Mr. Hoa.
Nearly 5 months have passed since the price ceiling for the transitional project was announced (January 10, 2023), however, price negotiations are still slow. According to Mr. Tran Viet Hoa, the reason is that many investors have violated legal regulations on planning, land, construction investment, etc. Therefore, this project has not met legal procedures and cannot negotiate prices with EVN.
To date, 32/85 projects with a total capacity of 1,576.05 MW have not yet submitted documents to the Electricity Trading Company to negotiate electricity prices and power purchase contracts. Some investors have been asked to supplement their documents since the end of March 2023, but after 2 months, they have not been able to supplement them.
“The completion of legal documents has not yet received due attention from investors. This has led to delays in preparing and submitting documents to competent authorities. It is also possible that many projects have completed legal procedures but have not yet installed sufficient equipment to be ready for connection to the national grid. Therefore, any investors who are still lacking in conditions need to complete them soon to connect to the national grid and commercially exploit them,” said Mr. Hoa.
According to Mr. Hoa, the total capacity of more than 53 projects that have submitted documents is currently over 3,000 MW. However, the available capacity does not reach the designed capacity, because at this time wind power is being exploited very poorly, while solar energy is being exploited better.
“In fact, although renewable energy sources have been put into commercial exploitation, their capacity is still not much compared to actual demand. Therefore, the most important thing at this time is to save energy to limit the risk of power shortages, while reducing investment capital and investment pressure in the energy sector,” said Mr. Hoa.
Previously, providing information to the press on some issues related to the electricity supply situation and the connection and calculation of electricity prices of renewable energy projects, Deputy Minister of Industry and Trade Dang Hoang An said that he had signed an urgent document to EVN requesting that the group urgently negotiate with solar and wind power plants to transition to temporary prices and operate electricity generation on the grid when the investment and construction work and legal documents have been completed according to regulations.
After negotiation, the agreed price will be settled according to the official price regulations from the date of electricity generation to the grid.
The Ministry of Industry and Trade requested EVN to direct its member units to coordinate with investors to complete legal procedures related to EVN such as connection agreements (if expired) before May 27; complete testing (according to regulations in Decision No. 25 dated May 16, 2019 of the Electricity Regulatory Authority) before May 27 for plants registered for testing; review the testing results of power plants, ensuring compliance with technical requirements and relevant regulations.
In addition, the Ministry of Industry and Trade requests the People's Committees of provinces and cities to direct the Department of Industry and Trade according to the decentralization of solar and wind power plants to coordinate with investors to promptly carry out the work of design appraisal, design adjustment (if any) and inspect the acceptance work according to their authority.
The Ministry of Industry and Trade also directed the Electricity and Renewable Energy Department to guide investors facing planning problems during the process of adjusting investors; the Electricity Regulatory Authority urgently carries out the work of granting electricity operation licenses for completed investment projects in order to put the projects into operation soon, ensuring electricity supply and resource exploitation, avoiding investment waste.
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