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Tuesday, July 16, 2024

Review needed for renewable projects given FITs against regulations

By T.Dao

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HCMC – Vietnam Group Electricity (EVN) has been told to find solutions for 14 solar power projects that have been granted feed-in tariffs (FITs) against regulations.

As per Resolution 115/NQ-CP issued in 2018, the projects entitled to a FIT of 9.35 cents per kWh for 20 years consist of solar power projects approved by the prime minister or included in the national power development plan, with a combined capacity of 2,022 MW. However, the Ministry of Industry and Trade has allowed more renewable energy projects to enjoy FITs.

Supplementary FITs were granted to projects including Hacom Solar, Sinenergy Ninh Thuan 1, Thuan Nam Duc Long, Thien Tan Solar Ninh Thuan, Phuoc Ninh, Son My 2, Son My, Solar Farm Nhon Hai, Bau Zon, Thuan Nam 12, SP Infra 1, Adani Phuoc Minh, Ho Bau Ngu, and the 450 MW solar power project combined with Thuan Nam 500kV station and 500kV and 220kW transmission lines.

The Government Inspectorate’s conclusion stated that the above projects should not have received FITs in line with Government Resolution 115, which entitles the south-central province of Ninh Thuan to special policies and mechanisms for social and economic development in 2018-2023.

As a result, EVN had to pay an additional VND1,480 billion to these investors over 2.5 years from 2020 to June 2022.

In a recent communication to EVN, the Ministry of Industry and Trade has called for a review of the entire negotiation process, power purchase agreement execution, grid connection conditions, recognition of commercial operation dates, and payments to investors as per the previously conducted FITs. This review aims to develop solutions for these cases.

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