Several wind power projects miss opportunity to enjoy preferential prices

October 31 is the deadline for wind power projects and plants to enjoy the Feed-in Tariff (FIT) price mechanism (preferential electricity purchasing price fixed for 20 years) after being put into trial operations and receiving Commercial Operation Date (COD) acceptance.

However, according to data updated by the Vietnam Electricity (EVN), by October 29, only 42 out of 106 wind power plants, with a total capacity of 2,131.3 MWs, had been recognized for commercial operation. It is forecasted that many wind power plants out of the remaining 64 projects will not be on schedule for COD recognition, which means they will miss the opportunity to enjoy the preferential electricity purchase and sale mechanism with EVN.

According to investors, due to the Covid-19 pandemic and social distancing, many projects in the Southern region are behind schedule. As many investors have proposed an extension for wind power projects that had not finished construction due to the Covid-19 pandemic and could not operate before October 31, Mr. Hoang Tien Dung, Director of the Electricity and Energy Department, said that the Ministry of Industry and Trade (MoIT) would put forward a transitional processing mechanism for these projects but would not apply the FIT price.

The ministry will suggest a handling mechanism on the principle of cost, investment capital, plant operation, and maintenance for investors to negotiate with the power buyer to determine the electricity purchasing price. As for projects starting construction after October 31, 2021, it is compulsory to apply the bidding mechanism for wind power prices. Accordingly, investors will negotiate the selling price with the buyer, following the price bracket prescribed by the MoIT.