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Wednesday, July 24, 2024

EVN declines pricing talks with renewable energy plants

The Saigon Times

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HCMC – The Vietnam Electricity Group (EVN) has refused to assume the responsibility for holding pricing negotiations with the renewable power plants which have been ineligible to enjoy the Feed-in Tariff (FIT) mechanism.

It is harder to identify the average annual power output of those renewable power plants than that of traditional ones as the figure has yet to be confirmed by any agencies, EVN said in a report to the Ministry of Industry and Trade.

Many problems beyond EVN’s control may arise if pricing negotiations are based on the total investment and the average power output declared by the investors.

Instead, EVN suggested that those renewable power projects should be allowed to directly join the market and sell their electricity at a price not higher than the cap prescribed by the Ministry of Industry and Trade.

EVN proposed applying the two-step bidding mechanism in the long term, just like most countries in the world do after applying the FIT incentive price for a certain period.

First, the investor should be properly chosen in compliance with the new Law on Investment. If the investor fails to carry out the project within a specified period of time, the authority has the right to take back the project and hand it over to another investor.

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