On 20/03/2023, EVN held a conference to discuss with investors of transitional renewable energy projects.
Recommendations from investors
At the conference, representatives of some investors wished to soon remove difficulties and obstacles, especially issues of mechanisms and policies, specific instructions of competent authorities so that procedures for negotiating power purchase contracts for projects are soon implemented.
Investors have raised many questions, concerns, complaints and suggestions. The opinions can be divided into three groups: Electricity price, procedures for negotiating power purchase and sale contracts and proposal of situational solutions.
- First: About the electricity price: There are many questions about how to calculate the price. The investor side generally disagrees with taking the highest capacity (P50) of the plant with the most favorable conditions to calculate the power capacity. Some investors require additional price calculations conducted by independent consultants.
- Second: Regarding the negotiation procedures for electricity purchase and sale: Investors said that: The Ministry of Industry and Trade has not yet provided guidance on negotiating transitional power purchase and sale contracts.
- Third: Regarding proposals and recommendations: Investors propose to allow immediate capacity release because it is more than 2,000 MW of electricity that is being wasted every day, which is a great resource of the whole society, not just investors.
Response from EVN
The representative of EVN EPTC explained more about the price formation mechanism and that EVN must comply with the price bracket issued by the Ministry of Industry and Trade.
In the spirit of market demand, listening to opinions from investors, Vietnam Electricity and related units noted the opinions of investors at the conference, and at the same time wished the Ministry of Industry and Trade soon. there is a document guiding the negotiation method, which serves as a basis for EVN and investors of transitional projects to negotiate.
Representative of EVN EPTC said that until 20/3/2023, only one investor had submitted an application for a power purchase agreement. The negotiation can only proceed after EVN EPTC receives all the documents.