Want to be in the loop?
subscribe to
our notification
Business News
MOIT RECOMMENDS UNFINISHED WIND, SOLAR FARMS NEGOTIATE ENERGY PRICES
The Ministry of Industry and Trade (MoIT) has asked the Prime Minister about the mechanism for ongoing solar power and transitional wind power projects to enjoy the incentive price.
In a recent document sent to the PM, the MoIT suggested investors of those projects negotiate electricity prices and power purchase and sale contracts with Vietnam Electricity (EVN).
Of the total of 78,121 MW of installed capacity of electricity sources nationwide, there was 16,545 MW of solar power, including 8,904 MW of concentrated solar power and 7,660 MW of rooftop solar power and 4,126 MW of wind power that have been put into operation and have enjoyed the FIT (preferential purchase price) according to the Prime Minister’s decision.
However, the MoIT announced there were still many projects or parts of wind and solar power projects that had been implemented in practice but not been able to enjoy the FIT price in time.
Among them, 62 wind power projects with a total capacity of 3,479 MW had signed a power purchase agreement with EVN, but due to the expiration of the FIT price, could not set the electricity price.
At the same time, five projects with a total capacity of 452.62 MW were waiting for a determination of THE electricity price, while several other projects were in progress, said the ministry.
To avoid wasting social investment, the MoIT said: “It is necessary to determine the electricity price mechanism for projects.”
Accordingly, the ministry has proposed to the Prime Minister to completely solve the mechanism for the transition of wind power and solar power projects, remove difficulties for investors, and direct future wind and solar power projects.
Specifically, for transitional projects, the MoIT proposed the PM approve the mechanism reported in Document No. 17 from January 27, in which investors of transitional projects conduct electricity price negotiations and power purchase and sale contracts with EVN within the electricity generation price bracket and guidelines issued by the MoIT.
With the wind and solar power projects to be implemented in the future, the ministry proposed to approve the application of the electricity price negotiation mechanism and power purchase agreement similar to the transitional projects mentioned above, adding that it was to ensure the consistency of the legal corridor with the projects.
As for projects that have been recognised for commercial operation, the ministry proposed the PM issue a document to direct it to have a basis to guide the review of contracts between EVN and investors to harmonise the interests between the seller - the buyer - the electricity consumer and the state.
In addition, the ministry also requested the PM to annul Decision No 13 on the mechanism of solar power development, Decision No 37 and Decision No 39 on the mechanism of wind power development.
It was assigned to coordinate with the Ministry of Justice to prepare a Draft Decision, consult ministries and branches, and submit it to the PM for promulgation in accordance with the law.
Given the above proposals, the MoIT said as the legal basis for the EVN bidding for electricity purchase was unclear, the above proposals would ensure compliance with the law.
The ministry said the bidding mechanism for electricity purchase of projects that have investors and have been implemented in progress had not been regulated in legal documents, including the Law on Electricity, the Law on Prices, the Law on Bidding, and the Law on Bidding, Law on Property Auction and related guiding documents.
In addition, the MoIT also said that while it was complying with the bidding plan to buy electricity, it received lots of feedback from investors.
Most reacted strongly, expressing disagreement that the bidding for power purchase over several years did not have a solid legal basis, affecting the calculation of cash flow and the ability to pay back the capital and repay the bank debt of implemented projects.
Source: VIR
Related News
VIETNAM’S GDP TO GROW 5.5% THIS YEAR – WB
This forecast is based on the assumption of a moderate recovery in manufacturing exports in 2024, fueled by rebound growth of 8.5% year-on-year in the fourth quarter of 2023 and 17.2% year-on-year in the first quarter of 2024, reflecting strengthening global demand, said Dorsati Madani, senior country economist at the WB in Vietnam.
FARE REFUND FOR VISA REJECTION
Cathay Pacific will offer full refunds for cases of visa rejection to provide you with the confidence to explore the world with ease. If you are planning to fly to a destination that requires an entry visa, you can now book with greater peace of mind.
FOUR COMMODITIES POST Q1 EXPORT VALUE OF OVER 5 BILLION USD
The total export turnover of agricultural, forestry, and fisheries products in the first three months of 2024 is estimated to reach 13.53 billion USD, an increase of 21.8% compared to the same period of 2023.
MOIT PROPOSES SCHEME TO BOOST RENEWABLE ENERGY PROCUREMENT
The proposed Direct Power Purchase Agreement (DDPA) mechanism, outlined in the draft decree, targets organisations and individuals consuming electricity from the 22kV power grid or higher, with a monthly consumption averaging 500,000kWh. However, residential households are excluded from direct procurement.
REAL ESTATE BONDS PLACE PRESSURE ON ISSUING FIRMS
The ministry’s recent report underscores concerns within Vietnam’s corporate bond market for 2023 and 2024. It emphasizes the critical need to address hindrances to the real estate sector in line with the objectives provided in Government Resolution No. 33/NQ-CP, which aims to stabilize the industry.
DA NANG CUSTOMS FOCUSES ON DEVELOPING CUSTOMS-BUSINESS PARTNERSHIPS
Da Nang Customs Department issued an action plan for developing customs-business partnership in 2024. One of the new events this year is the workshop on “Settlement reports for enterprises engaged in outsourcing, export production and export processing” held in Da Nang Customs Department on April 16, 2024.