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.

The eighth power development plan (PDP VIII) shows concerns about the development of new electricity sources by 2030.

The fate of unfinished wind power projects which failed to enjoy the FIT (feed in tariff) because they could not become operational prior to November 1, 2021 is uncertain.

The Mekong Delta will need to optimise its natural conditions to develop renewable energy and attract investment in the sector to mitigate the impacts of climate change, experts have said.

Power demand in Vietnam has increased by 10% per annum, which has required the country to use clean energy technologies, including rooftop solar power, to maintain high economic growth.

Deputy Prime Minister Le Van Thanh said the eighth national power development plan is designed in a way to put the common good and interests first.

Vietnam is known as a factory of the world. But with commitments made at the 2021 United Nations Climate Change Conference, more commonly referred to as COP26, Vietnam must become a "green factory", a green production center of the world.

The Ministry of Industry and Trade (MoIT) has put forth a proposal to start auctioning solar and wind energy projects that did not complete the technical test phase prior to October 31, 2021.