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Data from Vietnam Electricity (EVN) has revealed 15 projects with a total capacity of nearly 735 MW, have completed the procedures for commercial operation and have begun supplying electricity to the grid. The daily average output of these projects stands at approximately 3.2 million kWh, accounting for about 0.4 per cent of the total power supply.
These projects are part of 85 transitional renewable energy projects, totalling over 4,600MW, which missed the feed-in-tariff (FIT) deadline at the end of 2020. As a result, they had to negotiate power prices with EVN based on the price framework issued by the Ministry of Industry and Trade (MoIT) earlier in the year.
EVN reported that 72 out of the 85 projects, with a combined capacity of nearly 3,932MW, have submitted documents for price negotiation and power purchase agreements. Among these, 83 per cent proposed a temporary price calculated at half of the ceiling price set by the MoIT.
Currently, the MoIT has approved temporary prices for 58 projects, with a total capacity of over 3,181MW. However, for these projects to operate commercially and supply electricity to the grid, they must fulfill various procedures related to grid connection, project acceptance, and other documentation, such as investment approval extension decisions and power operation licences.
In May, the MoIT attributed the delays in negotiation and operation of transitional renewable energy projects to numerous investors violating regulations on planning, land, and construction investment, which resulted in failure to meet legal requirements.
The MoIT also pointed out that many investors have yet to complete the legal documentation necessary for obtaining power operation licences, a crucial step under the Electricity Law for projects to be exploited. This has led to delays in preparation and submission of documents to the competent authority.
While the negotiation of temporary prices streamlines the process for early operation and power generation from transitional renewable energy projects, the MoIT emphasised the need to ensure strict adherence to regulations.
Presently, there are still 13 transitional renewable energy projects that have not submitted documents for price negotiation and power purchase agreements with Electricity Trading Company (under EVN).
These projects are ineligible for preferential prices over the next 20 years and are required to negotiate with EVN based on the electricity price framework set by the MoIT earlier this year, with prices lower by 20-30 per cent compared to previous FIT rates.