Renewable energy project investors have proposed that Vietnam Electricity Group (EVN) purchase power from eligible projects at an interim price equivalent to 90% of the electricity import price.
The proposal was made at a conference held by State utility EVN in Hanoi on March 20, which featured 85 investors of the transitional solar and wind power projects.
The proposal was based on Circular 15 of the Ministry of Industry and Trade and was also the wish of 36 transitional renewable energy project investors who had signed the petition sent to the prime minister on March 10. Construction and trial operations have been completed for 34 transitional projects, including 28 wind energy and six solar power projects, which will provide nearly 2,091 MW of power, making them eligible for connection to the national electricity grid.
While waiting for a revised framework for electricity tariffs from the respective authorities, and negotiations with the EVN, the investors proposed urgently mobilizing the power capacity of projects eligible for electricity generation to prevent energy being wasted. The investors also proposed an interim electricity price for renewable energy projects equal to 90% of the electricity import price.
In reality, EVN buys electricity from other sources at a higher price than that of renewable energy. For example, in 2022, coal power costs ranged from VND3,500 to VND4,000 per KWh, while the price of renewable energy is only VND2,000 per KWh.
“Imported wind power, hydropower, and thermal power till December 31, 2025, is priced at 6.95 U.S. cents per KWh as per the prime minister’s decision, so it would be unreasonable if renewable power output of local projects is not mobilized at the same price with the import level, given the availability of the electricity transmission infrastructure,” said Nguyen Thi Thanh Binh, vice director of T&T Corporation.
According to Binh, the proposed interim electricity price for renewable energy projects at 90% of the import price, equal to 6.2 cents per KWh, is lower than the ceiling price provided in Decision 21 issued by the Ministry of Industry and Trade.