The State Audit, when informing about the result of offering preferences for renewable energy, asked the Ministry of Industry and Trade (MOIT) to cooperate with agencies and the Electricity of Vietnam (EVN) to create a bidding policy and set procedures to ensure fairness and successful call for investments in the renewable energy sector.

In reply, MOIT said it has joined forces with ministries and branches to check the regulations on choosing power project investors. After discussing with the Ministry of Planning and Investment (MPI), MOIT found that there are still obstacles to implementation.

First, the current laws don’t have any regulation which forces companies to organize bids to select power project investors. Therefore, this is not within the coverage of the Decree 25/2020 that guides the implementation of the Law on Bidding. Competent agencies can apply current regulations to choose investors (Investment Law, Law on Bidding)

Moreover, organizing bids to choose investors based on the criterion of electricity selling prices isn't in line with current regulations.

Electricity buyers are not agencies which determine the choice of investors.

MOIT explained that the regulations in Investment Law, Law on Price and Electricity Law on those choosing investors are different from those determining electricity prices.

In principle, an electricity buyer (EVN) has the right to make decisions/negotiate electricity buy prices with sellers. Meanwhile, under the Investment Law, the agencies which have the competence of choosing investors are not EVN.

That is why during the process of choosing investors of power projects, the electricity selling price is not a criterion for consideration. After being chosen, investors will negotiate on PPA, arrange capital for projects and implement the projects.

It stressed that choosing investors based on electricity prices offered by investors still cannot be applied because of different regulations in the laws. 

The ministry also affirmed that it doesn’t have jurisdiction over issuing regulations on bidding.

Luong Bang