Studying the tender mechanism, determining the price for windfarm power projects behind schedule

According to Decision No. 39/2018/QD-TTg amending and supplementing Decision 37/2011/QD-TTG on mechanism to support the development of windfarm power projects in Vietnam to October 31, 2021, the FIT pricing mechanism for windfarm power will be expired.

At the quarterly press conference for Quarter III/2021 held by Ministry of Industry and Trade (MoIT) in September 30 2021, Mr. Hoang Tien Dung, Director of the MoIT’s Department of Electricity and Renewable Energy said that according to the Group of Electricity of Vietnam (EVN), by the end of 8/2021, about 106 wind power projects have been certified commercial and entitled the FIT pricing mechanism. currently, investors are making great efforts to operate their windfarm power project on schedule to enjoy the mechanism.

However, various suggestions have been submitted to MoIT by provincial People’s Committee, investors and associations showing different reasons but Covid-19 is the main cause making the projects delay.

“After the expiring date of FIT, MoIT has to study to recommend on tender options and determination on the windfarm prices. We are urgently study to report the PM the windfarm development mechanism in the coming time in line with Laws on Investment, Price, Electricity and relevant regulations”, affirmed Mr. Dung.

He also stated that the transition from the fixed pricing mechanism to tender for Client’s selection is the world’s trend appropriate to local prevailing law in the current time. The fixed pricing mechanism is the fruitful tool for our newly developed renewable market in previous time. The world’s experience shows that once the market grows to a certain scale, it will be better to transit to a tender mechanism in terms of management and improvement of its transparency and competitiveness.

Besides the FIT price for windfarm power, Mr. Dung stated that a document was issued in 5/2021 by Vice Prime Minister directing to review the National Power Development Planning in period of 2021 – 2023 with vision to 2045 (PDPVIII). “During the period of May and July 2021, we promptly reviewed, amended and updated the PDPVIII. The document was issued on 30 August 2021 by MoIT requesting ministries, agencies, corporations to give comments”.

He added, an evaluation meeting will be held on 3/10/2021 by Appraisal Council for PDPVIII. Once PDPVIII is approved, the MoIT will record the comments and submit to the PM. “It is expected the PDPVIII will be submitted to the PM in the early October 2021 and approved within this year”, emphasized Mr. Dung.


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