Update news FIT
The FIT (feed in tariff) electricity pricing policy spurred development of wind and solar power in Vietnam, but solutions to electricity purchase pricing after the FIT ended has caused policy interruption.
The 450MW solar power project in Ninh Thuan province faces a dilemma: 40 percent of its capacity still cannot be sold, causing a big loss to its investor, the Trung Nam Group.
At present, while choosing investors for electricity projects, except for BOT projects, the electricity selling price is still not being considered. Only after being chosen will investors begin negotiating for a power purchase agreement (PPA).
The Ministry of Industry and Trade (MOIT), which has oversight management of the electricity sector, is responsible for the supervision of proposals by Trung Nam Thuan Nam Solar Power to stop the usage of electricity without fixed pricing.
The electricity prices of many wind and solar power projects have yet to be determined following the expiration of the FIT (feed in tariff) policy, worrying investors.
The Ministry of Public Security (MPS) is collecting information about credit contracts, outstanding loans and debt classification of project developers, while the Ministry of Industry and Trade (MOIT) has proposed new mechanisms for the projects.
The Ministry of Industry and Trade’s (MOIT) report to the Prime Minister on the eighth power development plan (PDP VIII) shows considerable changes in installation capacity.
Maintaining FIT prices for those who failed to meet deadline and reimplementing nuclear power projects were among issues raised by foreign investors at the Vietnam Business Forum 2022.
As commitments to reach net-zero greenhouse gas emissions by 2050 increase across the globe, the question of how these commitments can be met and the corresponding economic transformation managed becomes ever more central.
Norwegian Ambassador to Vietnam Grete Løchen and Commercial Counsellor Arne-Kjetil Lian recently have handed over the 'Vietnam Supply Chain Study Report' to Vietnamese Minister of Industry and Trade Nguyen Hong Dien.
Capital flows into green growth projects have still seen positive signals despite adverse impacts from the COVID-19 pandemic on foreign direct investment (FDI) in Vietnam.
Many offshore wind power investors are holding their breath waiting for the next move of the Ministry of Industry and Trade and the Government.
The Feed in Tariff (FIT) price of VND2,000 per kwh will expire in seven months, but the price for the next period has not been fixed yet.
Wind and solar power continues to be prioritized but solutions are needed to ensure the safety of the electricity system when operating volatile sources of energy.
Wind power developers, who are running against time to put their projects into operation prior to November 2021, now face another problem: they may not get a VAT (value added tax) refund because of certain regulations.
Many wind power projects are being developed at a time when the transmission line has become overloaded. As a result, there could be difficulty selling power.
In Huong Hoa, called the "wind-power metropolis" of Vietnam, one sao (1 sao = 360 square meters) of hilly land is priced at VND4 billion.