At a press conference on the afternoon of May 26, Mr. Dang Hoang An, Deputy Minister of Industry and Trade, said that Vietnam is currently importing electricity from Laos, Cambodia and China. However, the total import output is about 10 million kW/hour, which is relatively low compared to consumer demand.
According to Mr. An, electricity import is a long-term strategy based on Vietnam's political and economic relations to ensure the country's long-term energy security and is determined in the national power development plan for each period. Electricity import is carefully calculated in scenarios to ensure a small proportion, ensure national energy security and autonomy, and be consistent with the conditions of political - economic - trade relations with countries in the region.
Currently, the national power system, especially the Northern power system, is in the peak of the dry season, operating in an extremely difficult situation, due to high system load, poor water flow from hydropower plants, and many difficulties in fuel supply for coal-fired thermal power plants.
" The Ministry has also directed EVN to urgently negotiate and mobilize renewable energy power plants to increase the capacity of the power system. Currently, the Ministry of Industry and Trade has agreed on the temporary prices of 19 transitional wind and solar power plants. Once these power projects fully meet the regulations, they will be able to mobilize electricity to the national grid ," said Mr. Hoa.
The electricity price of renewable energy projects is tentatively calculated at 50% of the ceiling price. (Illustration photo)
Electricity price of renewable energy projects is provisionally calculated at 50% of ceiling price.
Mr. An also said that there are currently 8 solar power plants and 77 wind power plants that have signed power purchase contracts with EVN before January 1, 2021 but do not meet the conditions for applying FIT electricity prices in Decision No. 13/2020/QD-TTg dated April 6, 2020 of the Prime Minister.
In order to have a mechanism for transitional projects after the FIT price mechanism expires, the Ministry of Industry and Trade has issued Circular No. 15/2022/TT-BCT and Decision No. 21/QD-BCT as a basis for EVN and transitional projects to agree on electricity prices to ensure that they do not exceed the electricity generation price framework issued by the Ministry of Industry and Trade.
The electricity generation price framework determined by the Ministry of Industry and Trade is based on project investment rate data, taking into account the downward trend in investment rates of solar and wind power types in the world. The investment rate of grid-connected solar power projects in the 2018-2021 period decreased from 1,267 USD/kW to 857 USD/kW (equivalent to 11%/year), the investment rate of grid-connected onshore wind power projects decreased from 1,636 USD/kW to 1,325 USD/kW (equivalent to 6.3%/year), leading to changes in the calculation results of the price framework compared to the issued FIT price.
Previously, answering VTC News , Mr. Tran Viet Hoa, Director of the Electricity Regulatory Authority, said that recently, investors of transitional power plants have not been interested in submitting documents to negotiate electricity prices with EVN, many investors still want a higher price.
Regarding the negotiation situation of electricity prices, the leader of the Electricity Regulatory Authority said that after the Ministry of Industry and Trade issued the price framework in January 2023, it was not until March that some investors submitted documents.
As of May 26, 52/85 transitional solar and wind power plants with a total capacity of 3,155 MW (accounting for 67%) have submitted their applications to EVN. Of these, 42 plants are negotiating electricity prices with EVN; 36 plants with a total capacity of 2,063.7 MW have proposed provisional electricity prices equal to 50% of the price frame as a basis for mobilization.
There are still 33 power plants with a total capacity of 1,581 MW that have not submitted negotiation documents (accounting for about 33%).
Besides, many investors violate legal regulations on planning, land, construction investment... so they are still stuck with legal procedures and cannot negotiate prices with EVN.
To date, the Ministry of Industry and Trade has approved temporary prices for 19 investors proposing to apply temporary prices during the negotiation period with a total capacity of 1,346.82 MW and currently, there are 17 more transitional power plants that EVN is completing negotiation procedures with investors to submit to the Ministry of Industry and Trade for approval in May 2023. The Ministry has also directed EVN to closely coordinate with investors to speed up the grid connection progress for plants that have agreed on temporary prices.
For transitional solar and wind power plants that have not completed legal procedures for investment and construction, the Ministry of Industry and Trade has directed functional units under the Ministry as well as requested the People's Committees of provinces to direct the Department of Industry and Trade to coordinate with investors to urgently carry out design appraisal, adjusted design (if any) and inspect acceptance work according to authority.
At the same time, request units under the Ministry to guide investors in planning problems during the process of adjusting investment policies.
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