18 Renewable Energy Power Plants Go Live
However, there are currently six projects, with a total capacity of approximately 285MW, that have not yet begun price negotiations with EVN. Of the projects that have submitted their documents, 67 projects with a combined capacity of around 3,850MW have proposed a provisional price that is roughly half of the ceiling rate set by the Ministry of Industry and Trade (MoIT). Depending on whether the energy source is solar or wind, this translates to a price range of VND754 to 908 per kWh, excluding VAT.
On a positive note, EVN and project developers have successfully negotiated and signed Power Purchase Agreements (PPAs) with 59 projects. Out of these, 58 projects have received approval from the MoIT, with a combined capacity of over 3,180MW. Currently, 18 of these projects have completed their commercial operation date (COD), contributing a total capacity of over 950MW. Since their COD up until August 10, these renewable energy projects have generated approximately 268 million kWh of energy. Notably, the rate of energy production has nearly doubled compared to figures from a month ago. On average, these projects collectively account for around 0.4 percent of the national power system’s total daily energy production.
However, there are still some challenges. The combined capacity of renewable energy projects that are behind schedule is over 4,600MW, with nearly 2,100MW coming from 34 transitional projects that have finished construction and testing. These projects are not eligible for preferential feed-in tariffs for a 20-year period and are required to negotiate electricity prices with EVN based on the power framework introduced by the MoIT earlier this year. The negotiated rates are approximately 20-30 percent lower than previous figures. The MoIT has clarified that the delays in negotiations and operation of these transition projects are primarily due to developers’ breaches concerning planning, land regulations, and investment, as well as some developers not yet completing the necessary paperwork to obtain an electricity operation license.