Hundreds of solar power projects were approved in error, exceeding capacity by nearly 20 times.

Failure to properly implement planning

The conclusion of the Government Inspectorate clearly stated that the Ministry of Industry and Trade did not comply with regulations, the planning for solar power development was not in line with the planning period until 2020, and there was no provincial-level solar power planning until 2020.

Meanwhile, the Ministry has approved the addition of 114 solar power projects with a total capacity of 4,166 MW to the provincial power planning, while only 14 projects (870 MW) were approved in the planning.

According to the inspection conclusion, 92 projects with a total capacity of 3,194 MW were approved without legal basis for planning.

The Ministry of Industry and Trade also advised the Prime Minister to approve the addition of 54 separate projects with a total capacity of 10,521 MW to the adjusted Power Plan VII, while there was no plan, so there was no legal basis.

Many solar power projects have violations. Photo: Nguyen Tuan — Many solar power projects have violations. Illustration photo: Nguyen Tuan

The Government Inspectorate said that rooftop solar power was invested rapidly with a large capacity of 7,864 MW, increasing the total solar power capacity to 16,506 MW, nearly 20 times higher than approved. This led to an imbalance between power sources and grids, power source structure, and regions, causing difficulties in operating the system.

The consequences of the above violations, according to the Government Inspectorate, are: The FIT price paid to investors and system costs increased by at least 5.5 cents/kWh; causing local overload, difficulty in operating the system, forcing power plants to reduce generation.

"The main responsibility for the above shortcomings and violations belongs to the Ministry of Industry and Trade and the People's Committees of the provinces that proposed to invest in the project" - the conclusion stated.

In addition, the conclusion also pointed out violations in advising on the issuance of Decision 13/2020 on the mechanism to encourage solar power development in Vietnam, which is contrary to Resolution 115 of the Government.

This resulted in 15 solar power projects enjoying the preferential price of 9.35 cents/kWh being not targeted to the right subjects, so the total amount that EVN had to pay was about 1,481 billion VND more.

The Ministry of Industry and Trade also advised that the conditions for grid-connected solar power projects to apply the FIT price of 7.09 cents/kWh are not in line with the conclusion of the Government Standing Committee. The Government Inspectorate determined that the main responsibility belongs to the Ministry of Industry and Trade in its advisory role, as well as related ministries and branches.

Transfer to the investigation agency

The inspection agency believes that the consultation on the issuance of a 20-year period for applying FIT prices to grid-connected solar power projects is too long and unreasonable.

The Ministry of Industry and Trade has not yet completed a number of assigned tasks such as not advising on bidding regulations, delaying the issuance of a mechanism to purchase electricity from old projects that have expired preferential prices, and delaying the implementation of a competitive wholesale electricity market...

From the above conclusions, the Government Inspectorate recommends the need to perfect legal regulations on electricity management. At the same time, it recommends that the Government assign the Ministry of Public Security to receive the case files and documents for consideration and handling according to regulations.

Including: The Ministry of Industry and Trade approved 154 additional projects without legal basis, causing waste of resources and demonstrating lax management, showing signs of irresponsibility causing serious consequences.

The Ministry of Industry and Trade's advice to the Prime Minister to issue the content in Decision 13/2020 is not in accordance with the Prime Minister's direction, increasing the cost of purchasing electricity and reducing the profits of state-owned enterprises, EVN.

The inspection agency also transferred documents to the Ministry of Public Security for review with the Ministry of Industry and Trade in issuing guidelines on the incentive mechanism for developing rooftop solar power, which has loopholes, shortcomings, and violations, but still enjoys preferential mechanisms.

In addition, the implementation of construction investment and projects on planned land overlaps the planning of other provinces.

Accordingly, the Government Inspectorate said it has sent a document transferring the above cases to the Security Investigation Agency for consideration and handling in accordance with regulations.

In addition, the Government Inspectorate also proposed to review and handle responsibilities with the Ministry of Industry and Trade, EVN, PVN, TKV; and handle economic issues with projects that do not comply with regulations.

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