Trungnam Group seeks government help as EVN cuts solar power usage

By Huong Dung
Wed, September 14, 2022 | 4:04 pm GTM+7

Trungnam Group has appealed to the government for help as state-owned Vietnam Electricity (EVN) announced it would cut the utilisation rate of power produced at its largest solar farm by 40% due to the lack of a pricing mechanism.

A Trung Nam solar power plant in Ninh Thuan province, central Vietnam. Photo courtesy of the company.

A Trung Nam solar power plant in Ninh Thuan province, central Vietnam. Photo courtesy of the company.

On August 31, EVN’s Electricity Power Trading Company (EPTC) announced it would stop purchasing 172,12 megawatts of solar power without a pricing mechanism from the 450 MW Trung Nam-Thuan Nam solar power plant in the central province of Ninh Thuan from September 1.

Under a document the Trung Nam-Thuan Nam Solar Power Co. Ltd under Trungnam Group sent to the government, the Ministry of Industry and Trade, EVN and EPTC on the same day, the company said the Trung Nam-Thuan Nam solar power project has been operational for more than 16 months and EVN contracted to use all of its power supply, including a part without a pricing mechanism.

The document says this is a conditional investment project with the investor selected by Ninh Thuan province in accordance with the law. In addition, the investor has built a transformer station and the 500kV Thuan Nam-Vinh Tan transmission line at a total cost of nearly VND2 trillion ($84.77 million), which will be offset with sales from the exploitation of the full capacity of 450 MW.

“Slashing 40% of the capacity means the project only operates at 60% of its designed capacity. It will break the investor’s commitment on the financial plan approved by credit institutions, leading to the project's inability to repay loans. Meanwhile, other investors as well as EVN are benefiting from the 500kV transmission line invested by Trungnam," the group argued.

On the other hand, cutting the utilization of power capacity without a pricing mechanism runs counter to the provisions in the power purchase agreement signed between Trungnam and EVN.

Specifically, Article 9 of the agreement clearly states that if EVN cuts usage capacity, it must notify Trungnam 10 days in advance. However, EVN announced the cut on August 31, less than a day before the effective date, said a Trungnam representative.

Therefore, Trungnam asked EVN to consider resuming full utilization of the solar farm’s output. "The company is committed to strictly complying with the regulations and requirements of the relevant state agencies regarding the payment after the price mechanism is applied, without any complaints and lawsuits," the group said.

Regarding the project, on September 15, 2021, Deputy Prime Minister Le Van Thanh chaired a meeting with ministries, sectors and the People's Committee of Ninh Thuan province to respond to recommendations from the project investor.

He ordered EVN to consider prioritizing the utilization of power produced at the plant as the project is investing in transmission infrastructure and supporting power transmission for other projects in the region.

At this meeting, an EVN representative confirmed that for the Trung Nam-Thuan Nam solar power project, EVN would reduce the utilization rate by less than 3%.

Founded in 2004, Trungnam Group has grown into a large private corporation with a multi-industry ecosystem that includes five areas: energy, infrastructure-construction, real estate, information technology and electronics industry.

It has entered a new era of successful and sustainable development thanks to large-scale renewable energy projects, contributing 1.63 gigawatts of energy to the national grid by October 2021. Trungnam Group aims to become a large corporation in Vietnam and reach out to Southeast Asia.

Comments (0)
  • Read More
EVN, Trungnam Group hold talks on solutions for solar power usage deadlock

EVN, Trungnam Group hold talks on solutions for solar power usage deadlock

State-owned Vietnam Electricity (EVN) has asked Trungnam Group to put the 172-megawatt capacity portion without a pricing mechanism of its 450 MW solar farm in Ninh Thuan into the competitive power generation market.

Energy - Sat, October 1, 2022 | 3:54 pm GTM+7

Danish firm Spectre opens third Vietnam factory in An Giang

Danish firm Spectre opens third Vietnam factory in An Giang

Spectre, a Danish maker of functional garments for outdoor sports brands, started operating its $17 million factory in An Giang province Friday, the company’s third in Vietnam.

Industries - Sat, October 1, 2022 | 3:06 pm GTM+7

Foreign firm accountant gets death sentence in $9.6 mln corruption case

Foreign firm accountant gets death sentence in $9.6 mln corruption case

A Dong Thap province court on Friday handed a death sentence to Nguyen Trung Thanh, chief accountant of Filipino-invested Pilmico Vietnam, on corruption charges.

Society - Sat, October 1, 2022 | 2:43 pm GTM+7

Vietnam’s nation brand valued at $431 billion

Vietnam’s nation brand valued at $431 billion

Vietnam has seen the third biggest brand value gain over the course of the pandemic in absolute terms, up $184 billion year-on-year to $431 billion in 2022, says London-based Brand Finance.

Economy - Sat, October 1, 2022 | 11:22 am GTM+7

Fever cools, townhouse, villa segment turns lethargic in major cities

Fever cools, townhouse, villa segment turns lethargic in major cities

Liquidity in the townhouse and villa segment, once feverishly high in both Hanoi and Ho Chi Minh City, has been drying up in recent months.

Real Estate - Sat, October 1, 2022 | 9:50 am GTM+7

AES gets ministerial nod for 2,250 MW LNG power project in Binh Thuan

AES gets ministerial nod for 2,250 MW LNG power project in Binh Thuan

American energy corporation AES has received in-principle approval from the Ministry of Industry and Trade for its VND50,432 billion ($2.11 billion) Son My 2 LNG-to-power project in the south-central province of Binh Thuan.

Energy - Fri, September 30, 2022 | 9:24 pm GTM+7

Coro Energy operates pilot rooftop solar power project in Vietnam

Coro Energy operates pilot rooftop solar power project in Vietnam

Coro Energy has completed commissioning of its Vietnam rooftop solar pilot project, the UK-based energy firm announced Friday.

Energy - Fri, September 30, 2022 | 6:59 pm GTM+7

VN-Index pulls one back after five losing sessions

VN-Index pulls one back after five losing sessions

Vietnam’s benchmark VN-Index reversed a consecutive five session decline with a six-point gain Friday to close at 1,132 points.

Finance - Fri, September 30, 2022 | 6:30 pm GTM+7

Vietnam’s GDP growth to keep driving southern industrial property market: report

Vietnam’s GDP growth to keep driving southern industrial property market: report

The industrial and logistics market in Ho Chi Minh City, Dong Nai, Binh Duong, Long An, and Ba Ria-Vung Tau will continue to grow in 2022-2023 thanks to Vietnam’s resilient economic expansion, according to Cushman and Wakefield.

Real Estate - Fri, September 30, 2022 | 3:32 pm GTM+7

Vietnam needs bonded warehouses for US cotton imports

Vietnam needs bonded warehouses for US cotton imports

Building a Vietnam bonded warehouse for U.S. cotton would benefit both countries, Vietnam Textile and Apparel Association (Vinatas) chairman Vu Duc Giang said Friday.

Industries - Fri, September 30, 2022 | 3:19 pm GTM+7

Thai giant Central Retail eyes mall investment in Binh Thuan

Thai giant Central Retail eyes mall investment in Binh Thuan

Thailand's Central Retail is seeking opportunities to build malls and supermarkets in Binh Thuan province.

Industries - Fri, September 30, 2022 | 3:05 pm GTM+7

Vietnam Q3 unemployment lowest in 3 years

Vietnam Q3 unemployment lowest in 3 years

Vietnam's unemployment rate dropped 1.7 percentage points year-on-year to 2.28% in the third quarter, the lowest since 2020.

Economy - Fri, September 30, 2022 | 11:38 am GTM+7

Looking up HCMC’s highest high-end homes

Looking up HCMC’s highest high-end homes

Housing projects like The River Thu Thiem, Lumière Riverside, Grand Marina Saigon, and The Opera Residence are home to the most expensive penthouses in Ho Chi Minh City.

Real Estate - Fri, September 30, 2022 | 9:36 am GTM+7

VAFIE helps boost cooperation between Vietnam, India firms

VAFIE helps boost cooperation between Vietnam, India firms

Invest Global, an investment consultancy under the Vietnam Association of Foreign-Invested Enterprises (VAFIE), and a delegation of 15 Indian businesses have signed an agreement on boosting investment cooperation between the two countries.

Industries - Fri, September 30, 2022 | 8:05 am GTM+7

US dollar scales record high peak of VND24,000

US dollar scales record high peak of VND24,000

The exchange rate at Vietnamese commercial banks crossed VND24,000 per dollar Thursday, reaching a new peak that it had not scaled before.

Banking - Thu, September 29, 2022 | 9:45 pm GTM+7

Proptech firm Levitate makes its debut in Vietnam

Proptech firm Levitate makes its debut in Vietnam

Singapore-headquartered housing development platform Levitate has made Vietnam its debut market, giving consumers in the country more creative input when buying their own home.

Real Estate - Thu, September 29, 2022 | 9:19 pm GTM+7