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Renewable energy projects in Vietnam: some positive news

In the last month, more renewable energy projects in Vietnam begin to sell electricity commercially.

According to the Electricity of Vietnam (EVN), as of 14th July 2023, 72 out of 85 transitional renewable energy projects with a total capacity of nearly 3,931.9MW renewable energy projects have submitted documents to the Power Trading Company to negotiate electricity prices and purchase contracts. sell electricity, and 60 projects (total capacity of 3,331.4MW) that propose a temporary price equal to 50% of the ceiling price of the price bracket (according to Decision No. 21/QD-BCT dated January 7, 2023 of the Ministry of Industry and Trade). EVN and the investor have completed price negotiation and signed off on PPA contracts with 58/60 projects and the Ministry of Industry and Trade has approved temporary prices for 58 projects with a total capacity of 3,181.4MW.

In addition,14 plants with a total capacity of 686.12MW have completed COD procedures, and started generating commercial power on the grid. The 14 plants include Phù Mỹ 1, Phù Mỹ 3 solar power plants; Thiên Tân 1.2, Thiên Tân 1.3 Solar power plants Solar power plant in Phuoc Minh commune, Thuan Nam district, Ninh Thuan province (450MW); Tân Phú Đông 1; wind power plant; Hướng Hiệp 1 wind power plant; Nhơn Hội wind power plant - phase 2; Hướng Linh 7 wind power plant; Hiệp Thạnh Wind Power Plant; VPL Bến Tre Wind Power Plant; Hanbaram Wind Power Plant; Bình Đại wind power plant; Hòa Đông 2 wind power plant. The EVN's data also shows that: The cumulative power output of transitional renewable energy projects from the time of COD is about 115 million kWh, in which, the average daily power output is about 3.2 million kWh, accounting for about 0.4% of the total mobilised power output.

20 projects have been accepted by competent state management agencies for works/parts of works, and 27 projects have been granted electricity operation licenses for the whole plant/part of the plant, while 37 projects have had decisions to extend investment policies.

However, 13 projects with a total capacity of 802.70MW have not been submitted for negotiation.

In the period 2016 - 2020, Vietnam achieved a breakthrough development in renewable energy. The Government's mechanism for solar and wind power development created a strong impetus, attracting investors to participate in the production of solar and wind power. The planning of renewable energy sources is implemented nationwide and synchronously between the power source and the grid, in the planning, the capacity scale and schedule of each project are determined. The Government's incentive mechanism for solar power development also created a strong motivation, attracting investors to participate in solar power production. By the end of 2020, the total capacity of renewable energy sources in Vietnam reached about 6,000 MW, including about 6,364 MWp of solar power (equivalent to about 5,290 MW), about 500 MW of wind power and 325 MW of biomass electricity capacity. The total capacity of wind power, solar power and biomass power accounted for approximately 10% of the total capacity of the power system. In order to move towards a competitive, transparent and suitable energy market in line with the trend of energy transition, the government aims to focus on the study and introduction of mechanisms and policies related to regulations on power purchase and sale contracts as a basis for arranging capital and investment for gas thermal power projects and wind power projects.

Source: the Internet



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