The Ministry of Industry and Trade (MOIT) has submitted a report to Deputy Prime Minister Nguyen Hoa Binh that says that on the basis of the 2024 government’s regular meeting resolution, the government has agreed in principle to remove obstacles for renewable energy projects subject to inspection.

Regarding supplementation of the power development plan, in Conclusion No 1027 dated April 28, 2023, the Government Inspectorate pointed out that there is no legal basis in planning for MOIT to additionally approve new power projects and give advice to the Prime Minister to approve 154 more solar power projects with total capacity of 13,837MW. 

The 154 projects were not initially named in the eighth national power development plan (Plan 8).

For projects enjoying FIT prices that violate current regulations as concluded by competent agencies (those who did not meet requirements to enjoy the FIT), MOIT said the projects will no longer enjoy FIT, and electricity prices will be re-defined based on current regulations.

The projects will have to pay back the money they got thanks to the FIT they have enjoyed through the payment offset model.

This was seen as the optimal solution based on the analysis, assessment and comparison of socio-economic benefits, minimizing disputes and complaints which might affect the investment environment. The solution will ensure social order and security and national energy security, and harmonize benefits to the state and investors.

MOIT said that Electricity of Vietnam (EVN) should cooperate with investors to define the projects eligible for FIT. 

EVN will give reports about the projects not eligible for FIT and ask competent agencies to issue a regulation on electricity purchase prices for involved parties to calculate the amounts of money the parties have to pay.

Regarding rooftop solar power projects, MOIT has suggested that EVN will give instructions about the checking and listing of projects built on agricultural and forestry land with high capacity, and then report to local authorities in the provinces where the projects are developed.

If competent agencies decide that the projects violate regulations on using land for farms, they won’t be able to enjoy FIT. The prices to be applied to the projects will be re-defined. The units authorized to buy or sell electricity will negotiate with investors to come to an agreement about electricity prices.

Luong Bang