Vietnam Electricity (EVN) proposed the Ministry of Industry and Trade reduce the purchase price of wind and solar power by 30 percent compared to the current one.
With the data collected until November 16, 2022, the Electricity of Vietnam (EVN) has just proposed to the Ministry of Industry and Trade and the Electricity Regulatory Authority of Vietnam to apply the electricity generation price bracket for each type of renewable energy plant according to the four options that the company has performed over time.
Specifically, according to EVN’s proposal, the power purchase price from a ground-mounted solar power plant is VND 1,187.96 per kW. It is VND 1,569.83 per kW to a floating solar power plant, VND1,590.88 per kW to an inland wind power plant and VND1,944.91 per kW to an offshore wind power farm.
The Vietnam state-run utility also said that it has used data reported by investors, so there is not enough evidence to determine the accuracy, reasonableness and validity of the data.
Investors are fully responsible for the accuracy, reasonableness and validity of the reported data and compliance with legal regulations in the project implementation because EVN’s hypothetical calculated parameters will be verified and decided by the Ministry of Industry and Trade.
Previously, EVN was assigned by the Ministry of Industry and Trade and the Electricity Regulatory Authority of Vietnam to build a price framework for electricity generation for solar power plants and transitional wind power plants. To carry out this task, EVN has sent dispatches to more than 240 renewable energy plants requesting information.
As of November 16, 2022, EVN only received feedback from the investors of 208 power plants, including 95 ground-based solar power plants, and 4 floating solar power plants out of a total of 147 solar power plants that have signed power purchase agreements with EVN.
Out of a total of 146 wind power plants that have signed power purchase agreements with EVN, roughly 109 wind power plants have provided information.
Because it has not been expired for investors to provide the feasibility studies or technical designs of many power plants for EVN, the group had to temporarily use data for calculations based on the responses from 208 above-mentioned power plants.
Following the Ministry of Industry and Trade’s urgent request, EVN explained that it did not have enough time to hire an independent consultant to calculate the price bracket as a basis for submission to the Ministry of Industry and Trade, so EVN expected the Ministry of Industry and Trade to continue using an independent consultant or an advisory council as prescribed in Article 10 of Circular 15/2022/TT-BCT dated October 3, 2022 to carefully study the calculations and proposals of EVN before deciding to approve it as a base for determining electricity prices through the competition/auction mechanism as per the Prime Minister’s Decision No. 13/2020 dated April 6, 2020 and Decision No. 39/2018 dated September 10, 2018.