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EVN stops buying solar power from Trung Nam

Electricity of Vietnam (EVN) has unexpectedly stopped buying 172MW of solar power from Trung Nam Thuan Nam Plant as mentioned by the National Assembly's Committee of People’s Aspirations in a February report.

On March 8, the committee and some National Assembly agencies and a delegation of Ninh Thuan National Assembly deputies organized a working session with the Ministry of Industry and Trade (MOIT), EVN and other agencies.

The topic of discussion was EVN’s decision on September 1, 2022 to stop the purchase, reasoning that there was no electricity price mechanism. This meant that the project was operating at 60 percent of designed capacity, thus causing a loss of VND2 billion a day to the company.

The National Assembly’s Committee of People’s Aspirations said the EVN move was not in line with the regulation on encouraging the development of solar power in Vietnam, as well as the power purchase agreement signed among parties. 

This caused a big loss to the company and waste of society’s resources.

The committee cited a series of legal documents, including Circular 15 dated October 3, 2022 stipulating the method on building an electricity generation price framework applied to transitional wind and power projects; and MOIT’s Decision 21 dated January 7, 2023 on the electricity generation price framework applied to transitional wind and solar power projects. 

It said that the explanation for the stoppage by EVN was unreasonable.

Another issue in discussion at the working session was the management and operation of the 500KV transformer station and the 500KV and 220KV transmission line.

Though the work has been completed and put into operation, EVN has yet to manage and operate the station and transmission line.

The operation of the 500KV Thuan Nam station is being carried out by the transmission unit belonging to EVN hired by Trung Nam Thuan Nam Company in order to ensure the safety of the national electricity system.

However, without specific regulations on asset transfer in this case, EVN cannot receive and operate transformer stations and the transmission line system developed by Trung Nam Thuan Nam.

The National Assembly Committee for People’s Aspirations has asked to soon promulgate regulations, which are legal foundations for the reception and operation of transformer stations and transmission infrastructure.

Thu Hang

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