Temporary prices fixed for 43 transitional renewable energy projects

Fourty-three solar and wind power projects that missed out on preferential feed-in-tariffs (FiTs) have accepted temporary prices equal to 50% of the ceiling levels set by the Ministry of Industry and Trade.

According to the new price bracket, the maximum purchase price for transitional solar power projects is VND1,185-1,508 (5.0-6.4 U.S. cents) per kWh, depending on the type and excluding VAT. Meanwhile, the ceiling price for transitional wind power projects is VND1,587-1,816 per kWh (6.8-7.7 U.S. cents).

It means that these project enjoy temporary prices of VND908 ($3.85) per kWh at maximum.

In addition, 19 projects or project segments have been accepted by appraisal authorities, while 26 others have been granted electricity generation permits.

Three project or project segments have been approved for commercial operation, with a total capacity of more than 216 megawatts. However, they all had their commercial operation dates (COD) before 2021.

The Ministry of Industry and Trade (MoIT), state utility Vietnam Electricity (EVN) and relevant units are accelarating the removal of obstacles related to documents and procedures for temporary price negotiation and power purchase agreement (PPA) signing in order to soon put renewable power projects into commercial operation amid the risk of electricity shortage in the dry season 2023.

Several dialogues between the MoIT, EVN and developers of transitional wind renewable energy projects have been held to remove difficulties for the transitional projects.

Eighty-four solar and wind power projects with a total capacity of more than 4,600 MW missed deadlines for commercial operation. Of these, 34 transitional projects (28 wind and six solar power) with a total capacity of nearly 2,100 MW have been completed and put on trial runs.

These projects will not enjoy FiTs for 20 years as they missed out on the government's power generation deadline and have to negotiate prices with EVN at 20-30% lower than the FiTs.

So far, nearly 70% of them have submitted applications to the EVN for temporary price negotiation.

The 20-year preferential FiTs are 9.35 U.S. cents per kWh (Decision 11/2017) and 7.09-8.38 U.S. cents per kWh (Decision 13/2020) for solar power projects that became operational by December 31, 2020; and 8.35-9.8 U.S. cents per kWh (Decision 39/2018) for wind power projects that became operational by November 1, 2021.