Obstacles for renewables projects must be removed before July 25: Vietnam PM

Prime Minister Pham Minh Chinh has requested ministries, local administrations, and state-owned Vietnam Electricity (EVN) to remove obstacles for wind and solar power projects before July 25.

In a new dispatch, the cabinet leader affirmed that scapping the barriers for renewable energy projects is necessary to resolve their backlog over the past many years.

"However, this kind of work has been implemented slowly, and some ministries and local administrations have not fulfilled their responsibilities."

He requested concerned authorities to report the obstacle-removal results before July 25.

Since the beginning of the year, a group of domestic and foreign investors owning more than 44 renewable energy projects, along with energy associations, have twice sent petitions to the Government, reflecting on difficulties related to commercial operation (COD) validity and electricity prices.

In the dispatch, the Prime Minister asked Lam Dong, Binh Thuan, and Dak Nong provinces to address the overlap between renewable energy projects and the planning of titanium and bauxite minerals.

Dak Lak authorities were ordered to completely resolve the overlap between the Long Thanh 1 solar power project and the Ia Mor reservoir irrigation area.

Similarly, Dong Nai, Lam Dong, Khanh Hoa, Ho Chi Minh City, and Dak Lak provinces must sort out issues related to land procedures (land use increase, leasing procedures, and changes of land use purposes) for 40 projects in the locality, per the Government Inspectorate's conclusion.

EVN is responsible for unifying electricity purchase prices for large-scale rooftop solar power projects on forestry and agricultural land following the farm model.

The Ministry of Industry and Trade was assigned to propose solutions related to the incentivized feed-in-tariff (FiT) mechanism for "stuck" projects.

According to the Government Inspectorate's conclusion released at the end of 2023, many renewable energy projects were put into commercial operation (COD) before they received a written approval of post-completion project quality following appraisals from competent authorities.

A Ministry of Industry and Trade report shows that there are 173 grid-connected solar and wind power plants or parts of plants facing this situation.

The Government has agreed to remove obstacles and difficulties for the renewable energy projects, according to a resolution issued following its monthly meeting in November 2024. However, EVN and the investors have not yet agreed on a solution.

Previously, on December 12, at a conference on the government’s policy to aid such projects, Prime Minister Chinh had stated that the government strives to solve problems facing renewable energy projects by January 31, 2025.

Vietnam's Adjusted Power Development Plan (PDP VIII) seeks to "maximize" renewable energy output which will account for 28-36% by 2030 and 74-75% by 2050 (excluding hydropower). The adjusted PDP VIII for the 2021-2030 period, with a vision to 2050, was signed by Deputy Prime Minister Bui Thanh Son on April 15.

The plan sets a target of doubling power output by 2030, with renewables accounting for 28-36%. It aims to ensure sufficient power supply for an average GDP growth of 10% per year in the 2026-2030 period, and about 7.5% in the 2031-2050 period.