Deputy Prime Minister Tran Hong Ha requested that the Ministry of Industry and Trade (MoIT) amend regulations and offer specific instructions on the procedures for calculating and negotiating prices for transitional wind and solar power as soon as possible.
The request was published by the Government Office on May 17 in a summary of a meeting between ministries and sector leaders to eliminate obstacles for solar and wind power projects.
Ha asked the MoIT to direct Electricity of Vietnam (EVN) to settle temporary prices with investors for power generation projects connected to the grid once the project's construction investment and legal documents are finalised. After negotiations, the official price will be used to pay for the initiatives.
The MoIT has so far approved the temporary values of eight wind and solar power facilities negotiated by EVN and investors as of the afternoon of May 18.
There are currently 84 renewable energy projects for commercial operation with a total capacity of over 4,600MW that are behind schedule. 34 transition projects, including 28 wind power projects and 6 solar power projects, with a combined capacity of roughly 2,100MW have been completed and tested.
These projects are not eligible for a feed-in tariff for twenty years and must negotiate electricity prices with EVN based on the MoIT power generation pricing framework introduced this year, with prices 20 to 30 per cent lower than before. However, investors and EVN have difficulty negotiating electricity prices due to the lack of detailed guidance on the method for calculating MoIT prices.
According to EVN, there were 31 projects in the transitional category that had submitted documents to negotiate electricity pricing by mid-May, but only half of those projects had sufficient legal documentation and were negotiating prices. Concerns such as total investment, financial records, connection agreement, and planning must be clarified for the remaining projects.
In addition, only 13 of 84 transition initiatives have electricity operation licences, required for electricity generation. EVN added that among the investors who have submitted documents, sixteen have proposed applying the interim price during the negotiation period. Ten factories now accept a provisional price equal to half of the MoIT's ceiling price bracket.
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By Angela Nguyen