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Saturday, June 15, 2024

Renewable energy projects complain about regulatory bottlenecks

The Saigon Times

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HCMC – Renewable energy companies in the country have recently proposed the Government remove regulatory bottlenecks faced by their solar and wind power projects, reported the local media.

Around 23 solar and wind power project developers – including VPL Energy Joint Stock Company, Tien Giang Wind Power Joint Stock Company, Cho Long Wind Power Joint Stock Company and Sunpro – Ben Tre No. 8 Wind Farm Company Limited – have written to Prime Minister Pham Minh Chinh and Deputy Prime Minister Tran Hong Ha seeking their help in negotiating power prices with the Electric Power Trading Company (EPTC), a subsidiary of Vietnam Electricity Group (EVN).

According to them, investors have filed the documents required for electricity pricing negotiations with the EVN-EPTC but the talks have made little progress due to a lack of legal documents detailing electricity pricing negotiations.

To prevent the wastage of resources resulting from a prolonged negotiation process and soon put into service the wind and solar power projects eligible for power generation, these investors proposed the prime minister direct the Ministry of Industry and Trade to issue guidelines for the negotiations between EVN and the investors.

The investors also proposed using one of three options during the provisional mobilization of electricity from their projects.

Firstly, EVN pays the investors an amount equal to 90% of the ceiling price of the electricity price framework pursuant to Decision 21 until the relevant parties mutually reach an agreement on electricity prices without a retroactive effect. This means the agreed-upon prices would be applied from the date of mutual agreement by the two parties, rather than from the commencement date of the provisional mobilization of electricity.

Secondly, EVN pays the investors an amount equal to 50% of the ceiling price of the electricity price framework pursuant to Decision 21 until the relevant parties mutually reach an agreement on the electricity prices, with a retroactive effect. This means the agreed-upon prices would be applied from the commencement date of the provisional mobilization of electricity.

Thirdly, if the price for temporary mobilization accounts for half of the ceiling price of the electricity price framework pursuant to Decision 21, the provisional period would not be included in the 20-year contract term officially agreed between EVN and the investors.

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