The ministry has completed the latest draft version of the circular on measures for the electricity generation price framework for wind and solar power plants. The draft is open for opinions. 

The subjects to be covered by the circular are EVN and individuals and institutions developing solar and wind power plants, as well as waste-to-electricity and biomass plants. These do not include transitional solar and wind power projects stipulated in Point b Clause 2 Article 1, Circular No15/2022/TT-BC.

In principle, the prices for wind and solar power are within a range of values from the minimum value (VND0/kWh) to the maximum value that is released annually.

The electricity generation prices of a standard solar and wind power plant is calculated by the average fixed price + with the fixed operating and maintenance costs.

The circular also shows the methods and formulas for calculating prices based on related factors, such as the costs of investment, maintenance, operation, interest rates and electricity delivery.

On May 15, 2023, the Prime Minister approved the eighth national power development plan (Plan 8) for 2021-2030 with a vision towards 2050.

Plan 8 says: “Prioritizing and adopting breakthrough policies to accelerate the development of solar power systems on the roofs of people’s homes and construction works, especially in the areas at risk of electricity outages like the north, and the development of solar power projects under the mode of self-building and self-consumption."

The priority in solar power development is given to projects in the north, where solar radiation intensity is much lower than in the central and southern regions.

Therefore, according to MOIT, the electricity generation prices for the northern need to be higher than those for the central and southern regions in order to encourage development of solar power there. In other words, the electricity generation prices will be determined based on the solar radiation intensity of every region.

Prior to November 11 every year, EVN has the responsibility to calculate, or hire consultants, to set standard parameters for solar and wind power plants, to calculate electricity generation prices of power plants.

The urgent issue is that Vietnam needs to develop electricity generation sources to satisfy a 10 percent annual growth rate. Analysts note that the electricity pricing policy will determine if Vietnam can attract investments in power projects.

Vietnam is encouraging self-development and self-consumption rooftop solar power systems which are not connected to and do not sell electricity to the national grid. 

Luong Bang