3 requirements to agree to buy wind power, transitional solar power

15/03/2023

To come to an agreement on the purchase price of electricity from renewable energy plants (wind power, solar power) in transition and commercial operation after more than 2 years of waiting, the Ministry of Industry and Trade makes 3 requirements in the principle of determining electricity generation pricing.

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The Ministry of Industry and Trade has just sent an urgent dispatch to Electricity of Vietnam (EVN) about the agreement on electricity prices for solar power plants and transitional wind power plants.

Decision 21 on the electricity price bracket for solar power plants and transitional wind power plants was issued by this ministry in January. Accordingly, the ceiling price of transitional solar power projects does not include value-added tax (VAT). VAT) about 1,185-1,508 VND per kWh and wind power 1,587-1,816 VND per kWh, depending on the type.

This power generation price bracket is the basis for EVN to negotiate the purchase price of electricity from renewable energy plants transitioning and operating commercially after more than 2 years of waiting since the preferential FIT price expires.

To come to an agreement, the Ministry of Industry and Trade made three requirements in the principle of determining electricity generation prices.

Agreement to buy transitional wind and solar power: Ministry of Industry and Trade urgently request.

One is to comply with the provisions of Clause 1, Article 29 of the Electricity Law on electricity price policy. In particular, the Ministry of Industry and Trade emphasized, it is necessary to create conditions for all economic sectors to invest in electricity development with reasonable profits.

The Ministry of Industry and Trade requires and ensures the right to self-determination of electricity purchase and sale prices within the price bracket and structure of electricity retail tariff prescribed by the State of electricity buyers and sellers on the electricity market.

The second is the electricity generation price under the definite power purchase and sale contract, the wholesale electricity price agreed by the electricity units but must not exceed the electricity generation price bracket, the approved wholesale electricity price bracket - this is specified in Clause 3, Article 31 of the Electricity Law.

Thirdly, regarding the power purchase and sale contract, the Ministry of Industry and Trade stated that: The Investor and EVN negotiate and amend on the basis of the signed power purchase agreement and the contents specified in Circular No. 01 (January 19. 2023) abolishing a number of provisions in Circular No. 02 (January 15, 2019) and Circular No. 18 of the Minister of Industry and Trade…

With the above requirements, the Ministry of Industry and Trade asked EVN to urgently coordinate with investors of solar and wind power plants to forward agreement and unify electricity prices.