Actively remove difficulties and obstacles for renewable energy projects

Việt NamViệt Nam12/12/2024

On the afternoon of December 12, at the Government Headquarters, Prime Minister Pham Minh Chinh chaired an online conference to announce and implement the Government's Resolution on policies and directions to remove obstacles and difficulties for renewable energy projects. Also attending were Deputy Prime Ministers Nguyen Hoa Binh and Tran Hong Ha; representatives of leaders of ministries, branches and central agencies. The conference was broadcast online to 27 provinces and cities with renewable energy projects.

Prime Minister Pham Minh Chinh chaired an online conference to announce and implement the Government's Resolution on policies and directions to remove obstacles and difficulties for renewable energy projects. (Photo: Tran Hai)

In his opening remarks at the Conference, Prime Minister Pham Minh Chinh emphasized that now is the end of the year, we have completed 15/15 socio-economic development targets set, creating momentum, strength, spirit and confidence to enter 2025, the final year of implementing the Resolution of the 13th National Party Congress. The Government's policy is to strive for growth of more than 8%.

The Prime Minister was also pleased that localities also issued Resolutions to strive for a higher growth rate in 2025 than in 2024. However, the Prime Minister also recognized that high economic growth will lead to high growth in electricity because the growth rate in electricity must be 1.5 times higher than GDP growth to meet demand.

According to the Prime Minister, in the coming years, we will develop an economy based on digital transformation, high technology, digital data, etc., so electricity growth will require even higher growth. This is a rule that has been summarized through practice in our country and around the world.

Therefore, economic growth rate and electricity growth rate must be in harmony to ensure overall growth. Economic growth index will lead to a series of other growths, such as increased labor productivity and per capita income. The Prime Minister recalled the lesson of local power shortages in the North during the hot weather in 2023 to see that electricity plays a role in promoting economic development.

Conference scene. (Photo: Tran Hai)

In addition, the Prime Minister also mentioned the bright spots in the development of electricity infrastructure such as the investment in the construction of the 500kV Line 3, Quang Trach - Pho Noi, which achieved the fastest progress, ensured good quality, was tested by the recent storm No. 3, and did not exceed the budget. From there, lessons can be learned to direct other projects in electricity development.

In addition, we see that there are renewable energy projects that have been suspended and are behind schedule in putting them into operation. This resource is also very large and needs to be quickly deployed and put into operation to harmonize the interests of the Prime Minister, the people and investors. Maximize the effectiveness of investment in projects, anti waste as directed by General Secretary To Lam.

In that spirit, the Prime Minister directed to send Deputy Prime Minister Nguyen Hoa Binh and a working delegation to work with provinces and cities. Up to now, through review, it is known that by the end of 2023, the total capacity of renewable energy sources (wind power, solar power) in the power system is 21,664 MW, accounting for about 27%; the cumulative annual electricity output of power sources (wind, ground-mounted solar, rooftop solar) is about 27,317 million kWh, accounting for a capacity ratio of about 12.75% of the power system.

These results contribute to implementing the orientation in the Power Plan VIII, Vietnam's commitment at the COP26 Conference to achieve net zero emissions by 2050 and ensure energy security.

Prime Minister Pham Minh Chinh speaks at the Conference. (Photo: Tran Hai)

Currently, we see that the legal system is not yet complete, in the implementation process there are new points, complicated issues, so it is natural that practice is ahead of legal documents; the development of solar and wind power is being implemented quickly, positively but also has problems, even mistakes.

Through the Government's inspection, the violations have been pointed out in Conclusion 1027. The above violations need to be separated and specific responsibilities for the individuals involved need to be handled. However, the scale of the projects with preliminary investment is up to 308,409 billion VND, equivalent to about 13 billion USD.

Therefore, the delay in putting projects into operation will cause a huge waste of social resources: not being able to take advantage of available power sources to compensate, ensure power supply, meet the growth demand in 2025 which must be over 8%, power growth must be at 12-13%; the consequences can cause the risk of collapse, insolvency, inability to repay bank loans, leading to bankruptcy, businesses and people losing money, affecting the investment and business environment.

Recently, the Government and the Prime Minister have resolutely directed the removal of difficulties and obstacles for projects. Renewable energy. On December 7, 2024, the Government met and agreed to issue a Resolution on policies and directions to remove difficulties and obstacles for renewable energy projects.

Representatives of leaders of ministries, branches and delegates attending the Conference. (Photo: Tran Hai)

The Prime Minister affirmed that we do not legalize those who do wrong, but must find solutions for completed projects that need to be exploited so as not to waste social resources. This is the Government's effort in recent times to listen to the opinions of businesses, ministries, branches, and localities and is determined to solve and remove them.

This conference aims to deploy the above work in a synchronous manner. The Government has issued a policy to remove obstacles. Enterprises are not allowed to lobby; following this spirit, localities must work with enterprises to remove difficulties and obstacles.

The Prime Minister emphasized that it is especially forbidden to “lobby” as this can easily lead to negativity and corruption; anyone who does so will be severely punished by the authorities. At this conference, we agreed on viewpoints, guiding ideas, solutions, quality, goals, and roadmaps, and on that basis, we will work together to solve the problem.

Certain violations must be corrected; certain projects must be implemented, completed and put into operation, avoiding wasting social resources; therefore, all levels and sectors must promptly intervene to handle and resolve them according to their authority, without avoiding, without shirking responsibility, without fear of being implicated in violations; previous violations have been separated and handled; therefore, all levels and sectors must proactively implement solutions; the removal and handling of obstacles must be carried out publicly and transparently, without corruption or negativity; unify the guiding ideology; strictly prohibit "lobbying", strictly prohibit causing difficulties, troubles and harassment.

Delegates attending the Conference. (Photo: Tran Hai)

* Implementing Conclusion No. 77-KL/TW dated May 2, 2024 on "Project to remove difficulties and obstacles in inspection and examination conclusions and judgments in a number of provinces and cities" and Conclusion No. 97-KL/TW at the 10th Central Conference, the Prime Minister established a Steering Committee (Decision 1250/QD-TTg dated October 23, 2024 on reviewing and removing difficulties and obstacles related to projects) and a Working Group including leaders of ministries and branches: Industry and Trade, Public Security, Justice, Government Inspectorate, Planning and Investment, Finance, Natural Resources and Environment, State Capital Management Committee at Enterprises...

Based on the reports, proposals and consensus of relevant ministries, agencies and 27 localities at the conference on October 19, 2024 (on removing difficulties and obstacles for renewable energy power projects chaired by Deputy Prime Minister Nguyen Hoa Binh in Nha Trang, Khanh Hoa province), the Steering Committee and the Working Group held many meetings to discuss solutions to remove difficulties and obstacles and synthesize written opinions of ministries and local branches (according to Document No. 4341/VPCP-CN dated October 25, 2024) on asking for the Politburo's opinion on policies and directions to remove difficulties and obstacles for renewable energy power projects.

Carrying out the assigned tasks in Official Dispatch No. 5001/VPCP-CN dated December 6, 2024 of the Government Office, the Ministry of Industry and Trade, on behalf of the Working Group, sent Report No. 1070/BC-BCT dated December 7, 2024 to the Government on policies and directions to remove obstacles and difficulties for renewable energy projects.

At the regular Government meeting in November on December 7, 2024, the Government voted to approve a Resolution on policies and directions to remove obstacles and difficulties for renewable energy projects, with the following basic contents:

Violations and difficulties: implementing Resolution No. 55-NQ/TW dated February 11, 2020 of the Politburo on the strategic orientation of Vietnam's national energy development", the Government and the Prime Minister have issued a number of mechanisms to encourage the development of renewable energy.

Thanks to that, the development of renewable energy has been promoted and achieved certain results. By the end of 2023, the total capacity of renewable energy sources (wind power, solar power) in the power system will be 21,664 MW, accounting for about 27%; the cumulative annual electricity output of power sources (wind, ground-mounted solar, rooftop solar) will be about 27,317 million kWh, accounting for about 12.75% of the power system. These results contribute to the implementation of the orientation in the Power Plan VIII, Vietnam's commitment at the COP26 Conference to reach the level of net zero emissions by 2050 and ensuring energy security.

Implementing the policy of developing renewable energy is a new solution, unprecedented, lacking experience, the legal system is not complete, so the implementation process still has some violations that have been specifically concluded by the Government Inspectorate in Conclusion No. 1027. Mainly the following violations:

Enjoying the incentive price mechanism for the wrong subjects in Resolution No. 115/NQ-CP and Notice No. 402/TB-VPCP dated November 22, 2019 (14 solar power projects in Ninh Thuan province). Recognizing the commercial operation date and enjoying the FIT price when the competent state agency has not yet approved the results of the investor's construction acceptance (173 solar power plants/parts of grid-connected wind power plants). Overlapping mineral planning (20 projects); Overlapping irrigation planning and irrigation areas (5 projects); Overlapping defense land planning (1 project); Procedures and procedures for land records (40 projects). Investing in rooftop solar power on agricultural and forestry land under the model of investing in farms (413 rooftop solar power projects/systems with large capacity); in addition, there are a number of other violations.

The Ministry of Industry and Trade also proposed 6 groups of solutions to remove difficulties and obstacles for renewable energy projects, including:

Allow additional planning for implementation in case the project does not contain content that violates regulations related to national security and defense, planning of key national works and projects.

For projects with violations of procedures and processes related to land and construction works, they are allowed to be completed according to the provisions of law.

For projects that violate planning on minerals, irrigation, national defense, etc., an assessment of the socio-economic efficiency between planning implementation and project implementation will be conducted to adjust overlapping planning accordingly or integrate and simultaneously implement both renewable energy projects and related planning (dual-use planning).

For projects that are enjoying FIT prices but violate the Conclusion of competent authorities due to not fully meeting the conditions for enjoying FIT prices, they will not be entitled to preferential FIT prices but must re-determine the electricity purchase and sale prices according to regulations; recover the preferential FIT prices that have been enjoyed incorrectly through offset payment for electricity purchases.

For rooftop solar power projects built on agricultural and forestry land with large capacity under the farm investment model where the land is not suitable for farming, investors are required to:

Fully carry out procedures for construction and investment in aquaculture farms combined with implementation of renewable energy projects in accordance with the law. Immediately fulfill financial obligations to the State in accordance with regulations. In case the competent authority determines violations regarding land for aquaculture, the preferential FIT price will not be enjoyed but the electricity purchase price must be re-determined according to regulations; the preferential FIT prices that have been enjoyed incorrectly must be recovered through offset payments for electricity purchases. Fully carry out aquaculture farm activities in accordance with the initial investment registration.

For the subjects mentioned in items (4) and (5) above, the competent authority shall issue regulations on electricity purchase and sale when the competent authority determines that the project has its preferential FIT price revoked as a basis for offsetting payment for electricity purchase.


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