Prime Minister Pham Minh Chinh requested Tuesday the country’s electricity sector, represented by Vietnam Electricity (EVN), prevent any power supply crisis to ensure socio-economic development.
The order is part of his conclusion to the state utility following the group’s reviewal of its January-June 2022 business activities.
As for EVN’s request for a mechanism to ensure financing and smooth investments in key power projects, the PM assigned the Ministry of Industry and Trade (MoIT), the Committee for the Management of State Capital at Enterprises, ministries, and other relevant agencies to "absolutely prevent delays in project progress."
The MoIT was also asked to accelerate deals in purchasing electricity from Laos until 2025 and later.
At a recent meeting with the prime minister, EVN proposed a mechanism to buy power from wind and solar projects already completed but not eligible for preferential feed-in-tariffs (FiTs).
MoIT data shows as of October 31, 2021, the FiT deadline, 84 wind projects had already started commercial operations to enjoy FiT pricing of 8.5 cents per kWh, excluding VAT, for 20 years. However, 62 other wind projects, with a total capacity of nearly 3,500 megawatts, failed to meet the deadline.
As for solar power, more than 452.6 MW of capacity has been installed, with official selling prices yet to be determined.
Meanwhile, investors are anxiously waiting for development policies on solar and wind projects after the application of the above-mentioned FiT finished.
About a new mechanism that would serve as a replacement for FiTs, the PM reiterated that Deputy PM Le Van Thanh and the MoIT take responsibility.
PM Chinh noted that this purchasing mechanism has to be able to bolster investments in renewable energy development, assure healthy competition, and harmonize interests among the state, private investors, and consumers.