The Government Office has just announced the conclusion of Deputy Prime Minister Tran Hong Ha at a meeting related to negotiating electricity prices for wind and solar power projects that have completed construction but have not yet been put into operation.
In this announcement, Deputy Prime Minister Tran Hong Ha said that in recent times, many wind and solar power plants have been invested in and put into use, supplementing important power sources to contribute to the goal of ensuring national energy security and developing the country's socio-economy. However, many projects have been invested in by enterprises but have not been put into use, causing a waste of social resources.
Wind Power Plant No. 5 Ninh Thuan (Photo: Mai Ngoc)
To promptly remedy the above situation, the Deputy Prime Minister requested the Ministry of Industry and Trade to promptly amend and supplement Circular No. 15 dated October 3, 2022, Decision No. 21 dated January 7, 2023 in accordance with the correct procedures and regulations. During the period when there are no specific regulations on pricing methods, negotiate prices and issue specific instructions on the method of calculating and ensuring electricity prices for wind power and solar power.
In addition, the Ministry of Industry and Trade will study additional options for calculating similar prices for BT traffic projects; audit and agree on acceptable profit levels, ensuring investment motivation for businesses.
The Ministry is also assigned to direct agencies to speed up the issuance of electricity operation licenses for completed projects.
For projects that have completed investment and construction work and completed legal documents according to regulations, the Ministry of Industry and Trade will urgently issue a document directing EVN to negotiate with investors at a temporary price and operate electricity generation on the grid before May 20. After negotiations are completed and prices are agreed upon, settlement will be made according to the official price from the date of transmission to the grid.
For projects that are not yet qualified for operation and still have legal procedures, the Ministry of Industry and Trade and localities where there are transitional power projects must urgently guide businesses to complete the required procedures and documents.
For transitional projects that have completed investment procedures and are included in the adjusted Power Plan 8 but have expired, the Ministry of Industry and Trade shall issue documents guiding enterprises and localities where the projects are located to comply with the provisions of law on planning, Resolution No. 61 dated June 16, 2022 of the National Assembly and other relevant regulations.
Also in this announcement, the Deputy Prime Minister assigned the Ministry of Planning and Investment to urgently issue a document guiding the People's Committees of provinces and cities to review and decide on adjusting investment policies for transitional projects with implementation periods exceeding 24 months compared to the time limit specified in the first Investment Policy Approval Certificate in accordance with regulations, before May 25.
Last April, 23 investors with completed wind and solar power projects that have not yet been put into commercial operation sent a document to the Prime Minister requesting to overcome shortcomings in the electricity price negotiation mechanism, and proposed a mechanism to temporarily mobilize projects.
Specifically, 28 investors have submitted documents and requests to participate in negotiations with the Electricity Trading Company (EVN-EPTC). However, many submitted documents have not been approved as eligible for negotiation or the negotiation progress is very slow due to the lack of specific guidance documents as a basis for calculating electricity prices and negotiations.
In addition, according to investors, EVN-EPTC's proposal of a temporary price equal to or lower than 50% of the ceiling price of the electricity generation price frame of Decision 21 (equivalent to the temporary price for ground-mounted solar power plants of VND 592.45/kWh; floating solar power plants of VND 754.13/kWh; onshore wind power plants of VND 793.56/kWh; offshore wind power plants of VND 907.97/kWh) if not retroactively applied and deducted from the PPA contract period will cause the enterprise to "clinically die". This also goes completely against the policy of encouraging renewable energy development and the Government's commitments to reducing carbon emissions through renewable energy development.
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