Proposal to allow wind power and solar power projects to negotiate selling prices with EVN

Recently, the Ministry of Industry and Trade has submitted a document to the Prime Minister regarding the mechanism for transitional solar and wind power projects (projects in progress, unable to enjoy the FIT price).

The Ministry of Industry and Trade proposed to the Prime Minister to allow investors of unfinished wind and solar power projects to negotiate electricity prices and power purchase contracts with EVN.

Many proposals are made for wind power and solar power

According to statistics of EVN and localities, out of a total of 78,121 MW of installed power generation capacity nationwide, there are:

- 16,545 MW of solar power (including 8,904 MW of concentrated solar power and 7,660 MW of rooftop solar power).

- 4,126 wind power plants have been put into operation and have enjoyed the FIT (preferential purchase price) according to the Prime Minister's Decision.

However, according to the Ministry of Industry and Trade, at present, there are still many wind and solar power projects or projects that have actually been implemented but have not been able to enjoy the FIT price in time.

Of which, 62 wind power projects with a total capacity of 3,479 MW have signed power purchase agreements with EVN, but due to the expiration of the FIT price, there is no electricity selling price. 5 projects or a part of solar power projects with a total capacity of 452.62 MW are awaiting determination of electricity prices.

Besides, there are still many other projects in progress. Therefore, the Ministry of Industry and Trade believes that, in order to avoid wasting social investment, it is necessary to determine the electricity price mechanism for projects.

The Ministry of Industry and Trade has proposed to the Prime Minister 4 issues to completely solve the mechanism for wind power projects, transitional solar power projects and remove difficulties for investors. At the same time, orient the mechanism for wind and solar power projects in the future.

Problem 1:

For transitional projects, the Ministry of Industry and Trade proposes to the Prime Minister to approve the mechanism reported in Document No. 17 (January 27, 2002).

Specifically, investors of transitional projects conduct electricity price negotiations and power purchase agreements with EVN within the electricity generation price bracket and guidelines issued by the Ministry of Industry and Trade.

Problem 2:

For wind and solar power projects that will be deployed in the future, the Ministry of Industry and Trade proposes to approve the application of the electricity price negotiation mechanism and power purchase agreement similar to the transition projects. This helps to ensure the consistency of the legal corridor with the projects.

Problem 3:

For projects that have been recognized for commercial operation, the Ministry proposed the Prime Minister to issue a document to direct the Ministry to have a basis for guiding the review and review of contracts between EVN and investors in order to harmonize interests between the seller - the buyer - the electricity consumer and the state.

Problem 4:

The Ministry of Industry and Trade requested the Prime Minister to make a decision to annul Decision No. 13 and the mechanism for the development of solar energy, Decision 37 and Decision No. 39 on the wind power development mechanism.

The Ministry of Industry and Trade was assigned to coordinate with the Ministry of Justice to prepare a draft Decision, consult ministries and branches for submission to the Prime Minister for promulgation in accordance with the Law on Promulgation of Legal Documents.

What is the legal basis for bidding for electricity purchase?

When making the above proposals, the Ministry of Industry and Trade explained, the legal basis for EVN's bidding for electricity purchase is unknown. Therefore, the above proposals will ensure compliance with the Law and related documents.

According to the Ministry of Industry and Trade, the bidding mechanism for electricity purchase of projects with investors, which has been implemented in progress, has not been specified in legal documents including: Law on Electricity, Law on Prices, Law on Bidding, Law on property auction and related guiding documents. If there is a regulation, it will be a completely new regulation.

In addition, the Ministry of Industry and Trade also said that with the bidding plan to buy electricity, during the construction process, the Ministry received many feedbacks from investors, most of which strongly reacted, expressing disagreement. love.

The Ministry of Industry and Trade shared: “There is an opinion that the bidding for power purchase in a few years does not have a solid legal basis, affecting the calculation of cash flow, the ability to repay capital and repay the bank's debt. of implemented projects.”