EVN proposes electricity generation price framework, renewable energy investors worry about risks

Renewable energy projects are concerned about risks when the price range is low - Photo: NGOC HIEN

Accordingly, the electricity generation price framework for power sources proposed by EVN includes hydropower, coal-fired thermal power and gas-fired thermal power, renewable energy sources and imported electricity.

Hydropower prices remain unchanged, coal and gas power prices increase

Specifically, for hydropower, the proposed price range is VND 1,110/kWh, based on regulations on the method of determining the maximum price of the power generation price range for hydropower plants of all three regions.

For power plants using imported coal, the electricity generation price frame determined by EVN is 1,705.68 VND/kWh. This level is based on the input parameters of Quang Trach 1 thermal power plant, the only coal-fired thermal power plant using imported coal invested by EVN.

For combined cycle gas turbine power plants using natural gas, the price is determined from 3,077.79 - 3,069.38 VND/kWh. Input parameters are calculated based on the negotiation records of the power purchase contracts of O Mon 2 and O Mon 4 power plants using Lot B gas.

For LNG gas turbine thermal power plants, there are currently no new LNG power plants with approved feasibility studies within 48 months for calculation. Therefore, EVN uses parameters from Nhon Trach 3 and 4 power plants, which have built a price framework and have a power purchase contract with EVN. Therefore, the price of this type is determined to be 3,327.42 VND/kWh.

For the above power sources, the electricity generation price frame remains the same or increases compared to the previously issued price frame.

Specifically, the price frame for hydropower remains at the same level as the price issued in 2024; for LNG power plants, the electricity generation price frame is approved with a ceiling price of VND 2,590.85/kWh (excluding VAT); for coal-fired thermal power plants, it is VND 1,559.70/kWh (excluding VAT).

For renewable energy sources, the electricity generation price framework is determined based on the types of solar power plants, wind power and biomass power plants, solid waste power plants, and pumped energy power plants. Most of these price frameworks are lower than the current level.

Specifically, for ground-mounted solar power, the price is 1,382.7 VND/kWh in the North; 1,107.1 VND/kWh in the Central region; 1,012 VND/kWh in the South; floating solar power plants cost 1,685.8 VND/kWh in the North, 1,336.1 VND/kWh in the Central region, and 1,228.1 VND/kWh in the South.

Solar and wind power prices drop sharply

Regarding wind power plants, EVN also requested the Ministry of Industry and Trade to review the calculation results of the consulting unit and the Electricity Trading Company (EPTC) to ensure objectivity.

EVN proposed approval based on the calculation results of EPTC, in which the onshore wind power plant has a price of 1,643.89 VND/kWh and the nearshore wind power plant has a price of 1,913.67 VND/kWh.

For biomass power projects, the proposed price is 1,967.52 VND/kWh. For solid waste power plants, the electricity generation price is 1,914.37 VND/kWh. For pumped storage hydropower plants, it is 3,357.85 VND/kWh.

Regarding electricity import prices, EVN proposed that the Ministry of Industry and Trade issue a price framework for importing electricity from Laos according to the Government agreement and a price framework for importing electricity from China as a basis for implementation.

In addition, EVN also said that there are currently no specific regulations on calculating and determining the electricity generation price frame for types of power sources invested under the build-operate-transfer (BOT) model.

Therefore, this group recommends that the Ministry of Industry and Trade soon issue regulations on determining the electricity generation price framework for this type of source, as a basis for EVN to continue negotiating electricity prices and power purchase contracts with investors.

Talking to Tuoi Tre Online, some renewable energy investors said that with the price framework mechanism as proposed by EVN, the current price is too low, lower than the current price, so it is not attractive enough.

Especially when the proposed price is in VND, while investors borrow in USD to import equipment, determining the price in VND can pose risks to investors, especially in the context that hundreds of projects are at risk of retroactive electricity prices due to the lack of a certificate of completion acceptance from a competent state agency (CCA).

Currently, in addition to the price applied according to the preferential mechanism, the ceiling price frame approved by the Ministry of Industry and Trade for transitional solar power projects is 1,185 - 1,508 VND/kWh, wind power is 1,587 - 1,816 VND/kWh.

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Source: https://tuoitre.vn/evn-de-xuat-khung-gia-phat-dien-nha-dau-tu-dien-tai-tao-lo-ngai-rui-ro-20250325112226443.htm