The Vietnam Electricity Trading Company (EVN-EPTC) has proposed a temporary electricity pricing scheme for renewable energy projects, causing over 100 wind and solar power investors to fear potential financial collapse. Despite dialogue sessions between EVN and investors, no consensus has been reached.

From March 11 to March 15, Vietnam Electricity (EVN) held its first dialogue sessions with nearly 80 investors in the renewable energy sector.

These discussions followed petitions from over 100 wind and solar energy project developers to the government, expressing concerns that revised electricity pricing could jeopardize over $13 billion in investments.

At the meetings, EVN outlined its implementation of Resolution 233/NQ-CP (December 10, 2024) and Report 321/BC-BCT (December 12, 2024) from the Ministry of Industry and Trade (MOIT).

EVN invited renewable energy investors with Completion Acceptance Certificates (CCA) issued after the expiration of Feed-in Tariff (FIT) pricing policies to discuss potential pricing adjustments.

EVN’s proposal included:

Projects originally under FIT1 pricing (9.35 US cents/kWh) but completed after FIT1 expired would be temporarily adjusted to FIT2 pricing (7.09 US cents/kWh).

Projects under FIT1 or FIT2 but completed after FIT2 expired would be subject to "transitional project pricing" (1,184.9 VND/kWh, or approximately 4.7 US cents/kWh).

EVN emphasized that this is only a temporary pricing structure until an official decision is issued by regulatory authorities.

Investor objections: "This is not the fault of businesses"

Renewable energy investors strongly opposed EVN’s pricing structure, arguing that since October 31, 2021 - the deadline for projects to qualify for FIT pricing - neither MOIT nor EVN issued any official guidelines requiring projects to obtain a government-approved CCA to qualify for FIT rates.

However, on June 9, 2023 - long after FIT pricing policies had expired - MOIT issued Circular 10/2023/TT-BCT, introducing a new requirement that projects must obtain official completion certification (CCA) to apply for electricity operation licenses.

Investors argue that this retroactive policy change is unfair and that no existing law states that projects with a CCA issued after their commercial operation date (COD) automatically lose FIT eligibility.

Legal and financial risks for investors

Some investors referenced Inspection Conclusion 1027 from the Government Inspectorate and Resolution 233/NQ-CP, which instructed MOIT and EVN to review projects that had received COD approval and FIT rates before obtaining a CCA. If any violations were found, they were to be forwarded for legal action.

However, official government communications also specify that projects not meeting FIT criteria due to business violations should not receive FIT rates. Investors maintain that they were never informed that obtaining a CCA before FIT deadlines was mandatory, nor was it included in Power Purchase Agreements (PPA) signed with EVN.

An anonymous investor questioned: "If the CCA was an essential requirement, why didn't EVN demand it when signing power purchase contracts?"

They further argue that EVN’s temporary pricing plan violates existing PPAs, which are protected under Vietnamese law and international investment treaties. Some investors threaten legal action, including international arbitration, if EVN does not honor prior agreements.

Concerns over investor confidence and Vietnam’s energy future

As Vietnam aims for double-digit economic growth and continues seeking investment in renewable energy, industry experts warn that EVN’s temporary pricing measures could undermine investor confidence.

If implemented, investors warn that they may seek financial compensation from EVN for potential damages, including:

Penalty interest on outstanding loans

Stock devaluation of publicly listed renewable energy firms

Other financial losses resulting from the policy change

Investors have called for further discussions with MOIT and the Vietnamese government to find a fair solution rather than unilaterally enforcing a temporary pricing structure.

Legal expert: "Investment policies must be honored"

Lawyer Truong Thanh Duc, Director of ANVI Law Firm, emphasized that: "Investment incentives must be honored according to original commitments. If policies change, businesses may benefit from improvements, but they should not suffer losses due to unfavorable policy shifts. This is a fundamental investment principle, both domestically and internationally."

He further noted: "If enterprises committed serious violations, legal action is justified. However, if they completed projects ahead of schedule to contribute to Vietnam’s power supply, they deserve to receive the promised incentives."

Tam An