The North lacks nearly 5,000 MW of electricity.
On May 14, at a meeting on the plan for power supply and operation of the national power system during the peak hot months of 2023 with Vietnam Electricity Group (EVN), Vietnam National Oil and Gas Group (PVN), Vietnam National Coal and Mineral Industries Group (TKV), Dong Bac Corporation, State Capital Management Committee..., the Minister of Industry and Trade requested EVN to urgently negotiate and speed up the negotiation process to mobilize renewable energy sources for qualified enterprises; speed up the purchase and sale of electricity with signed electricity import projects... PVN and TKV coordinate with EVN and related units to supply gas and coal to power plants according to the power supply plan. In particular, increase exploitation and import, avoid gas and coal shortages for electricity production. In addition, strengthen propaganda on economical use of electricity during the peak hot season according to Official Dispatch 397 dated May 13 of the Prime Minister on proactively implementing urgent measures to respond to the risk of heat, drought, water shortage...
Many renewable energy projects have not yet been negotiated, and temporary power generation is also not possible.
Previously, reporting on the operation of the power system since the beginning of the year, EVN representative said that operating the power system during the peak hot months (from May to July) will be very difficult. In particular, the Northern power system faces a situation where it cannot meet the peak load of the system. The largest capacity shortage is about 1,600 - 4,900 MW. At the meeting, representatives of PVN, TKV and Dong Bac Corporation all committed to creating maximum conditions to supply coal and gas for power production, ensuring sufficient power supply for the whole country. The Minister of Industry and Trade emphasized the need to ensure that there is no power shortage; if there is, consider handling irresponsible individuals and organizations.
While the Ministry is showing determination in the negotiations, Mr. NVD, a representative of a wind power project in the south, is frustrated that all proposals have not been resolved, causing the project to continue to be covered in dust, wind and damage over time. Mr. D. said that the new price framework according to Decision 21 of the Ministry of Industry and Trade is not clear on what parameters it is based on, but it is clearly not suitable for reality. For example, removing 10% of the contingency cost from the total investment in the initial technical design.
In addition, the maintenance and repair costs when the project is forced to wait, "suspended" for nearly 1.5 years with wind power projects, "suspended" for more than 2 years with solar power projects. "The Electricity Trading Company has put forward a number of conditions that are said to be in accordance with regulations, but they are causing great disadvantages for investors. For example, the electricity purchase price is already too low, now they request to temporarily sell at 50% of the ceiling price of the price frame prescribed in Decision 21 of the Ministry of Finance but do not allow retroactivity. The electricity purchase price in the competitive electricity market is 1,750 VND/kWh, the provisional price is 50%, with wind power only 800 VND/kWh, solar power more than 500 VND/kWh. Thus, we are relieved but forced to sell below cost price forever if we cannot negotiate, or the negotiation is prolonged? If it is called temporary, why not allow retroactivity?", Mr. D. was indignant.
Notably, the Ministry of Industry and Trade's directive mentions the urgent negotiation of transitional electricity prices for projects that have met the conditions. According to EVN, up to now, 31 dossiers have been submitted to the Electricity Trading Company, of which about 10 projects have requested to mobilize temporary prices equal to 50% of the frame price. Currently, these investors have not yet provided full legal documents to proceed with immediate negotiations.
According to Thanh Nien 's investigation, the negotiation of power purchase contracts between EVN and investors of transitional renewable energy projects has slowed down, or more accurately, is at a standstill, as most of the documents submitted for negotiation require additional legal documents as prescribed. Many projects are facing obstacles due to procedures, lack of documents, legal regulations on investment... Even projects that have submitted documents, wanting to sell electricity at 50% of the frame price, cannot do so due to the lack of guidance from the Ministry of Industry and Trade and some requests that are retroactive after successful negotiations...
Accelerate temporary and retroactive mobilization?
In fact, although the Ministry of Industry and Trade has provided guidelines for negotiating electricity prices, it is only a framework regulation. While according to the Electricity Law, the electricity generation price with a power purchase contract has a clear term. Circular 01 of the Ministry also removed all regulations on purchasing all electricity output and only calculated according to actual prices, so it is not convincing to investors, because each project has different characteristics, the general principle also needs to be based on specific instructions of the Ministry. In addition, the responsibility to meet all the conditions for negotiation according to legal regulations belongs to the investor, EVN said that "the enterprise cannot verify and confirm, does not have the authority to do this, so both sides have difficulty negotiating".
Thanh Nien Newspaper organizes "Online discussion on electricity prices"
Electricity prices are rising during a record-breaking hot season, with high demand for electricity causing many households to see their electricity bills skyrocket. In particular, the risk of power shortages and rolling blackouts is causing concern among many people amid extreme weather changes.
How to reduce shock when receiving the next electricity bill? How to save maximum electricity consumption when cooling devices are "working at full capacity" on hot days? Should there be rotating power cuts or not...? All questions from readers will be answered by leaders of Vietnam Electricity Group (EVN), Southern Power Corporation, Ho Chi Minh City Power Corporation, National Electricity Regulatory Center... at the "Online discussion on electricity prices" organized by Thanh Nien Newspaper at 8:30 a.m. on May 16 at Thanh Nien Newspaper headquarters.
Adolescent
Energy expert, Dr. Tran Van Binh, said that the delay in negotiating the transitional price of renewable electricity has increased the pressure on power shortages. If it is true that businesses and EVN have not provided specific and clear guidance, it is clear that the Ministry of Industry and Trade is not determined in this matter or is afraid of responsibility due to overlapping policies and regulations. In addition, the phrase "meeting relevant legal regulations" is very vague, making it difficult to immediately decide on temporary mobilization. If it is temporary but we are still afraid of exceeding authority, then when will we finish negotiating?
"In my opinion, the Ministry of Industry and Trade has already given instructions, there must be guidance on what kind of contracts are, because how can we apply the general principle temporarily? In addition, the Government needs to allow these temporary power generation projects to be retroactive, to be sold at the price they successfully negotiated later, instead of being able to "buy outright and sell off" and seemingly forcing investors when they are in difficulty, and have not completed the negotiation procedures as expected. All solutions at this time are to remove obstacles, whoever is wrong will be punished, the rest must continue to avoid wasting too much valuable renewable energy resources", Dr. Binh shared.
Professor, Dr. Tran Dinh Long said that the risk of power shortage today also partly recognizes the important role of renewable energy, which has been heavily invested in in recent times. A few years ago, there were no large solar and wind power projects invested in Vietnam, so it would be difficult to have abundant renewable energy sources like today. However, when the development is hot, breaking all planning, the responsibility of the management agency and professional consultants must be held accountable. The remaining negotiation of transitional electricity prices is necessary at this time and must be carried out more quickly. It is necessary to ensure the interests of all parties. Investors also spend a large amount of money to do this, if it is not clear and transparent at this time, it will be very difficult to attract investment later. In particular, after the Power Plan 8 is approved, investment in power transmission, renewable energy, etc. will be greater.
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