Recently, the Vietnam Energy Association has decided to appoint Ms. Nguyen Thi Thanh Binh - Deputy General Director of T&T Group, Chairwoman of T&T Energy Corporation - to the position of Vice Chairwoman of the Association. This move is considered a signal to further affirm T&T's strong development orientation in the energy sector.

Several years ago, T&T Group laid the foundation for its investment strategy in the energy sector, especially solar and wind power projects. The group emphasized: "T&T Group advocates developing renewable energy and low-carbon energy (such as LNG) to contribute to the sustainable development of the energy sector, both in terms of structure and proportion of power sources."

However, the road to the renewable energy era is not easy for projects in T&T's ecosystem, similar to the challenges that many other private enterprises are facing.

Thousands of billions of dong have been invested by companies related to T&T in solar power projects such as Phuoc Ninh, Thien Tan 1.2, Thien Tan 1.3 and Thien Tan 1.4, but after commercial operation, many projects still face difficulties.

Specifically, the Phuoc Ninh solar power project invested by Ninh Thuan Energy Industry Joint Stock Company was recognized for commercial operation (COD) on April 18, 2020. However, this project was later concluded by the Government Inspectorate to apply the preferential price of 9.35 cents/kWh to the wrong subjects.

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T&T Group promotes investment in renewable energy sector.

In addition, at the time the Government Inspectorate intervened, part of the capacity of the Thien Tan 1.2 Solar Power Plant (40MW/80MW) and Thien Tan 1.3 (6MW/40MW) had been completed and recognized as commercially operational (COD) in 2020. However, from January 1, 2021, these plants only generated electricity to the EVN grid to record output without an official electricity price mechanism, leading to the inability to buy and sell electricity and not being paid.

The remaining capacity of the Tianjin 1.2 Solar Power Plant (40MW/80MW), Tianjin 1.3 (34MW/40MW) and the entire Tianjin 1.4 Solar Power Plant (80MW) will be completed after 2020. However, due to the lack of a pricing mechanism, these projects have not yet been able to come into operation.

Up to now, renewable power projects that have missed the preferential price deadline have only been temporarily applied a price equal to 50% of the ceiling price according to Decision 21 of the Ministry of Industry and Trade issued in January 2023 (ceiling price is 1,508 - 1,587 VND/kWh).

As a result, many projects fell into serious losses.

According to data from the Hanoi Stock Exchange (HNX), in the first 6 months of 2024, Ninh Thuan Energy Industry JSC recorded a loss of VND 107.9 billion, an increase compared to a loss of more than VND 83 billion in the same period last year.

This enterprise has equity of nearly 772 billion VND, with a debt-to-equity ratio of 3.5 times, equivalent to a total debt of about 2,720 billion VND. Of which, outstanding bonds account for 2.69 times equity, equivalent to about 2,078 billion VND. The company's total assets reach 3,492 billion VND.

The business situation of Ninh Thuan Energy Investment and Development Company Limited (NTEC) – the investor of Thien Tan 1.4 Solar Power Plant – is also not optimistic.

NTEC has equity of nearly VND489 billion, down from more than VND620 billion in the previous reporting period. The debt-to-equity ratio is 3.49 times, equivalent to total liabilities of nearly VND1,707 billion. The bond debt-to-equity ratio is 2.46 times, equivalent to total liabilities of nearly VND1,203 billion. Total assets reached VND1,692 billion. NTEC's business results continued to decline with negative after-tax profit of more than VND124 billion.

Currently, the future of these renewable energy projects still depends on the policies of competent authorities in the coming time, especially the pricing mechanism. Without timely solutions, the risk of prolonged losses will continue to weigh on businesses.