Mechanisms for 'transitional' solar and wind power projects need to be promulgated soon

Currently, wind and solar power projects that have not been completed and connected before the deadlines of December 31, 2020, and October 31, 2021, are waiting for electricity prices. That's a massive amount of social capital that needs to be used. Therefore, recently, the Ministry of Industry and Trade submitted a report to the Prime Minister to solve this problem.

Until the expiration date, Decisions 13/2020/QD-TTG on incentive mechanism (FIT price) for solar power and Decision 39/2018/QD-TTG on FIT price for wind power have brought good results. . From almost nothing, in just three years (2019 - 2021) there was 16,564 MW of installed solar capacity (including 8,904 MW of concentrated solar power and 7,660 MW of rooftop solar power) and 4,126 MW of electricity. the wind is put into operation at the Government's incentive FIT price.

However, because of the Covid-19 pandemic and several reasons for investment procedures, so far, 62 wind power projects with a total capacity of 3,479 MW have signed power purchase and sale contracts with the Electricity of Vietnam (EVN). ), but could not complete the COD before October 31, 2021, so electricity has not been sold. In addition, 452 MW of solar power was also completed after the deadline of December 31, 2020, so it has to wait for the determination of the electricity price for more than a year and has not yet been sold. In addition, there are several unfinished projects. Such projects are collectively referred to as transitional projects. The investor has invested thousands of billions of dong, if not mobilized, it will waste social capital and damage equipment.

To avoid wasting social investment and at the same time add additional electricity to the national grid, the Ministry of Industry and Trade has proposed an option in the Report to the Prime Minister on the pricing mechanism for wind power projects. and relay solar power. The content of the proposed plan can be summarized as follows: The Ministry of Industry and Trade develops and promulgates regulations on methods and procedures for setting up and appraising the electricity generation price bracket, stipulating the electricity generation price bracket for wind and solar power. It is used as a basis for EVN to negotiate and sign power purchase and sale contracts with project investors, similar to how it works with other power source projects such as hydropower, thermal power, gas turbines, etc. (Optional). mentioned in Report 17/BC-BCT dated January 27, 2022).

Compared with the provisions of current laws such as the Electricity Law, the Law on Prices, and guiding decrees, the Ministry of Industry and Trade found that: This option complies with the provisions of legal documents and under the current Law. onion.

Wind and solar power will have an increasingly large scale, accounting for a large proportion of the national power structure, so it is no longer appropriate to maintain supportive policies. The commitment to buy all electricity is no longer reasonable when the scale of solar power and wind power is too large, sometimes affecting the system's ability to regulate, and must reduce their generating capacity.

In the future, the Ministry of Industry and Trade finds that: Wind and solar power projects will also have to follow the electricity price negotiation mechanism and the power purchase agreement between the investor and EVN within the framework of the price frame and direction. issued by the Ministry of Industry and Trade.

On that basis, the Ministry of Industry and Trade proposes to the Prime Minister:

First: For transitional projects: Approve the mechanism like the above option.

Second: With future wind and solar power projects: Approving the application of the electricity price negotiation mechanism and power purchase agreement as the plan mentioned, ensuring the consistency of the legal corridor with the project.

Third: For projects that have been recognized for commercial operation: Request the Prime Minister to issue a directive document so that the Ministry of Industry and Trade has a basis to guide the review and review of contracts between EVN and owners. investment to harmonize the interests of the seller - the buyer - the electricity consumption and the State.

Fourth: Request the Prime Minister to issue a decision to adjust the previous decisions on the mechanism to encourage the development of wind and solar power.

A recent example of a power generation price bracket is Decision 820/QD-BCT dated April 29, 2022, of the Ministry of Industry and Trade promulgating the electricity generation price bracket in 2022, which stipulates the purchase price of electricity for coal and hydro-thermal power. electricity.

In our opinion, the mechanism for transitional wind and solar power projects needs to be promulgated soon to avoid wasting social resources and pressure on investors, as well as contribute to reducing electricity shortages in the future—hot days

source:nangluongvietnam.vn