Many renewable energy projects connected to the grid are at risk of slipping preferential electricity prices.

Hundreds of renewable energy projects across the country are at risk of having their preferential electricity prices revoked due to violations of acceptance regulations and incorrect enjoyment of incentive mechanisms – Photo: NGOC HIEN

Speaking to Tuoi Tre Online on December 23, many solar power project investors said that upcoming projects are at risk of having their electricity prices recalculated and will no longer enjoy the current preferential electricity purchase and sale prices.

Proposal to recalculate prices for a series of renewable energy projects

Instead of enjoying high electricity prices of up to 9.35 cents/kWh (equivalent to 2,231 VND/kWh according to FIT 1) or 1,692 VND/kWh (equivalent to 7.09 cents/kWh according to FIT 2), projects are at risk of enjoying the same price as transitional projects, which is no more than 1,184.9 VND/kWh. Thus, if the electricity price is recalculated, the projects will have a 24-47% decrease in electricity selling price compared to the price that Vietnam Electricity Group (EVN) is buying.

According to a report by the Ministry of Industry and Trade , there are up to 173 renewable energy projects or parts of renewable energy projects nationwide that have been recognized for commercial operation date and enjoy preferential electricity purchase and sale prices without having a competent state agency issue a document approving the results of construction acceptance.

In addition, in Ninh Thuan province, there are 19 solar power projects that enjoy incentives that are not in accordance with regulations, and other localities also have renewable energy projects that are entangled in violations of planning and implementation procedures. In particular, there are up to 413 projects and rooftop solar power systems invested in agricultural and forestry land under the model of investing in farms but the land is not suitable for farming. These are projects that have violations that have been concluded by the Government Inspectorate in Conclusion No. 1027.

Among the solutions to remove difficulties for energy projects, the Ministry of Industry and Trade proposes that projects that violate the regulations and do not meet the conditions will not enjoy preferential prices and must re-determine the electricity price. At the same time, the preferential FIT price ranges that have been incorrectly enjoyed will be recovered through compensation and payment for electricity purchases.

Risk of losing preferential prices, investors worried

The investor of a renewable energy project said that many businesses are facing difficulties when thousands of billions of VND of electricity sales have not been paid by EVN due to legal issues and inspection conclusions. In case of recalculating electricity prices with the option of reducing electricity sales by half compared to the preferential price that businesses are currently enjoying, the financial problem and initial investment profit will decrease sharply. According to this person, most of the projects receive investment capital from investment funds or funding banks, besides investors, these financial institutions are also having a "headache" with the new electricity price plan.

Meanwhile, an FDI investor in the energy sector said that the enterprise hopes to receive guidance from competent authorities to remove obstacles and help investors fulfill the project's financial obligations to domestic and foreign credit institutions.

Mr. Bui Van Thinh - Chairman of the Wind and Solar Power Association of Binh Thuan province - said that the Ministry of Industry and Trade's proposal of solutions to remove obstacles is a positive signal, helping to remove obstacles that have lasted for many years.

However, Mr. Thinh said that the review of preferential electricity prices is making investors worried. With clear violations of the law as concluded by the investigation security agency, Mr. Thinh said that strict handling is needed, but with the determination of remaining projects with violations, the level of violations and the authority to conclude the withdrawal of preferential prices need to be carefully considered.

Mr. Thinh said that it is necessary to consider the case where investors, especially foreign investors, will sue EVN when applying unclear and unclear transitional electricity prices. At the same time, if litigation occurs, Mr. Thinh assessed that it will affect the investment environment, resulting in a greater challenge in providing enough electricity for economic development.

Source: https://tuoitre.vn/nhieu-du-an-dien-tai-tao-da-hoa-luoi-co-nguy-co-truot-gia-ban-dien-uu-dai-20241223152548847.htm