Investors of numerous renewable energy projects demanded solutions to resolve pricing issues in a meeting with Vietnam Electricity (EVN) on Monday.

Investors have repeatedly complained that prices for clean power are too low, but the Ministry of Industry and Trade (MOIT) has said the prices for wind and solar power were set after suggestions by an independent consultancy council.

Thirty-six wind and solar power investors have sent a document to the Prime Minister requesting to fix problems in the pricing mechanism for transitional wind and solar power projects.

Renewable energy investors have just submitted a recommendation to the Prime Minister regarding the rectification of shortcomings in the process of building and promulgating a price mechanism for power generation for transitional power plants.

Solar energy has recently been considered one of the breakthrough industries that can bring impressive profits to businesses.

The loans made to project developers entail regular interest payments and normally come due after three years, putting many no-revenue solar and wind...

Prime Minister Pham Minh Chinh recently chaired a conference on domestic consumption and exports in 2023.

The Electricity of Vietnam (EVN) recorded a big loss of VND29 trillion in 2022. The figure may even double this year.

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).

Negotiations about wind and solar power prices must observe the principles of publicity, transparency and consensus with investors.

The power sector is in a difficult period because of the global fuel crisis. Higher production costs and higher cost prices compared to selling prices all have put the sector at risk.

Wind and solar power will account for an increasing proportion of Vietnam’s total electricity capacity.

Vietnam Electricity (EVN) proposed the Ministry of Industry and Trade reduce the purchase price of wind and solar power by 30 percent compared to the current one.

By the end of 2021 independent power plants accounted for 41.3 per cent of the total installed capacity of the whole system, up from only 18.4 per cent in 2018 when the solar wave was formed.

There have been numerous complaints regarding the development of the electricity price bracket, however only 59 out of 293 units and projects, or just 20% of renewable energy investors, have contributed ideas or proposals themselves.

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 absence of laws on energy and in particular renewable energy is causing an imbalance between the stages of production, transmission and consumption of coal-fired power, solar power, and wind power in Vietnam.

The government has chosen wind power and renewable energy in general to implement global commitments by 2050. But this is not expected to be a smooth path for a developing country like Vietnam.

Barriers stemming from the unresponsive transmission network and pricing mechanism is wasting the capacity of billions of kWh of electricity.

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.