Ninh Thuan states the reason for the slow implementation of energy projects and the lack of FIT price benefits

The slow implementation of the Cong Hai 1 Wind Power Plant Project; the Thien Tan 1.4 Solar Power Plant Project, the Hanbaram Wind Power Plant Project... are not entitled to FIT prices due to the electricity price policy mechanism.

Ninh Thuan states the reason for the slow implementation of energy projects and the lack of FIT price benefits

The slow implementation of the Cong Hai 1 Wind Power Plant Project; the Thien Tan 1.4 Solar Power Plant Project, the Hanbaram Wind Power Plant Project... are not entitled to FIT prices due to the electricity price policy mechanism.

Why slow implementation?

Voters in Hiep Kiet village, Cong Hai commune, Thuan Bac district reported that the Cong Hai wind power project was approved for investment in 2015, but up to now, the project has only completed the operating house, but has not yet constructed the turbine towers, and the implementation process is too slow compared to other projects.

According to the Department of Planning and Investment of Ninh Thuan, the Cong Hai 1 Wind Power Plant Project of Power Generation Corporation 2 includes 2 component projects.

In particular, Cong Hai 1 Wind Power Plant, phase 1, was granted the first Registration Certificate by the Provincial People's Committee on April 18, 2013, the first change on January 17, 2014, and the second change on April 17, 2023. The project has a capacity of 3 MW, with a total investment of 191 billion VND.

The Cong Hai 1 Wind Power Plant Project, Phase 1, was started on May 19, 2014, with Saigon Industry Corporation (CNS), Power Generation Corporation 2 (EVN Genco 2) and Ho Chi Minh City Power Trading Joint Stock Company as investors. Photo: Industry and Trade Magazine.

Cong Hai 1 Wind Power Plant, Phase 2 was granted the first Investment Registration Certificate by the Provincial People's Committee on May 30, 2013, the first change on January 17, 2014, and the second change on May 17, 2021. The project has a capacity of 37.5 MW, with a total investment of VND 1,061 billion.

Ninh Thuan Department of Planning and Investment explained that the slow implementation of the project was due to many objective reasons such as the conflict between the Russian Federation and Ukraine; the Covid-19 pandemic; the prolonged approval process of the connection plan; compensation and site clearance encountered many difficulties because many households did not agree; there was no electricity price mechanism to determine the effectiveness of the project...

“However, in addition to the above objective reasons, there are also some subjective reasons on the investor's side, such as not fully calculating the roadmap for issuing electricity prices, leading to delays in approving bidding documents,” the Department of Planning and Investment of Thuan An province mentioned.

In addition, Power Generation Corporation 2 is a state-owned unit and must be subject to state capital constraints according to legal regulations.

Regarding the project, the People's Committee of Ninh Thuan province has issued a document assigning the Department of Natural Resources and Environment to preside over and coordinate with relevant units to conduct an inspection of the project's land use situation to advise on project handling according to regulations.

The Department of Planning and Investment of Ninh Thuan also affirmed that in the coming time, it will continue to monitor and urge investors to speed up the implementation progress and advise the Provincial People's Committee to consider handling the project when it meets the prescribed conditions.

3 projects are not entitled to FIT price

Regarding projects that are slow to connect to the grid, the Department of Industry and Trade of Ninh Thuan informed that there are 3 solar power projects operating after December 31, 2020 and 1 wind power project operating after November 1, 2021 that are slow to connect to the grid, and are not entitled to the FIT price mechanism but only to the electricity selling price mechanism according to the Transitional Power Generation Price Framework in Decision No. 21/QD-BCT, dated January 7, 2023 of the Ministry of Industry and Trade.

Specifically, the Thien Tan 1.4 Solar Plant Project on Song Trau Lake, Thuan Bac District was recognized for commercial operation after December 31, 2020.

Hanbaram Wind Power Plant Project is recognized for commercial operation in 2023 with a capacity of 93 MW after November 1, 2021.

Habaram Wind Power Plant Project in Ninh Thuan Province.

As for Phuoc Thai 2 and Phuoc Thai 3 Solar Projects, the project is under construction and is expected to be put into operation in 2024.

The Department of Industry and Trade mentioned that the implementation of projects that could not be put into operation in time to enjoy the FIT price was due to the time of project implementation being the time of the Covid-19 outbreak, causing difficulties in importing equipment, hiring workers, experts entering the country and problems with circulation between districts and provinces; the Government's electricity price policy mechanism has not been issued in time for projects operating after the FIT price deadline.

In addition, the approval of Power Plan VIII is delayed (approved in Decision No. 500/QD-TTg, dated May 15, 2023).

However, the Ninh Thuan Department of Industry and Trade affirmed that the attention of the entire political system to promptly remove difficulties and obstacles created conditions for projects to promptly deploy investment and construction and put them into operation, enjoying the sale mechanism according to the Prime Minister's regulations during the Covid-19 outbreak. The proof is that by December 31, 2020, there were 32 solar power projects and 11 wind power projects (as of October 30, 2021) put into commercial operation.

According to the Ninh Thuan Provincial People's Committee, updated to the first quarter of 2024, there are 11 onshore wind power projects with a capacity of 667.25 MW; concentrated solar power with 35 projects, capacity of 2,466.8 MW have been invested and put into commercial operation.

Source: https://baodautu.vn/ninh-thuan-neu-ly-do-du-an-nang-luong-cham-trien-khai-khong-duoc-huong-gia-fit-d229203.html