Long-standing problems related to renewable energy projects need to be resolved soon.

(PLVN) - Recently, many foreign investors from many countries... and domestic investors of 27 wind and solar power plants have submitted a second petition to handle 173 renewable energy projects that have been put into commercial operation on time for the FIT deadline but are currently facing many payment problems. Notably, the number of investors co-signing this petition is higher than the first petition.

Báo Pháp Luật Việt Nam•27/06/2025

Waiting for a satisfactory solution

According to the petition of the investors, the fact that investors are having part of their electricity payment withheld is baseless. Specifically, the investors claim that the projects have been completed and put into commercial operation (COD) in accordance with the legal regulations at the time of completion. Accordingly, at the time these projects were approved for COD, the legal regulations did not require a written acceptance of the acceptance as a condition for COD.

“There is no legal basis to temporarily withhold part of the electricity purchase money, apply a temporary price list contrary to the previously agreed price list or force investors to sign amendments to the power purchase agreement (PPA),” the petition stated. However, according to the reflection, since the electricity bill payment period in January 2025, EVNEPTC has unilaterally withheld part of the payment money through the application of a temporary price list proposed by EVNEPTC itself.

Investors believe that revenue from electricity sales is a source of income for investors to maintain the operation of power plants, fulfill tax obligations to state agencies, pay principal and interest on loans to banks on time, and pay salaries and benefits to contractors and workers.

Investors said that the problems they are facing such as having part of their electricity bill withheld, the proposal to retroactively amend the COD date and the conditions for enjoying FIT prices (preferential prices for renewable energy projects) are unsatisfactory.

Meanwhile, one of the tasks and solutions stated in Clause 2.2 of Section III of Resolution 68-NQ/TW of the Politburo on private economic development states: “…There is a specific mechanism to handle projects and contracts that have been backlogged for many years, causing loss and waste of social resources, hindering the development of private enterprises, in parallel with determining the roles and responsibilities of relevant agencies, organizations, units and individuals according to the provisions of law; ending the situation where state agencies and state-owned enterprises are slow to fulfill payment obligations under contracts signed with private enterprises”. Clause 2.3 of Section III of Resolution 68 also states: do not retroactively apply legal provisions to handle cases that are disadvantageous to enterprises.

In addition, at the regular meeting in November on December 7, 2024, the Government passed a Resolution (Resolution No. 233/NQ-CP), in which it agreed on the policy on viewpoints, solutions and principles to remove difficulties and obstacles for renewable energy projects as reported in Report No. 1070/BC-BCT dated December 7, 2024 of the Ministry of Industry and Trade on the following contents: supplementing planning, procedures related to land, acceptance of construction works, enjoying FIT prices, rooftop solar power projects. The Ministry of Industry and Trade studies and carefully reviews the difficult cases and obstacles of renewable energy projects, proposes to competent authorities to handle each type of obstacle, ensuring that there is no negativity, group interests, or waste.

In Report No. 321/BC-BCT dated December 12, 2024 of the Ministry of Industry and Trade, 6 viewpoints were raised to remove difficulties and obstacles for renewable energy projects, including: Selecting the optimal solution based on analysis, evaluation, comparison of socio -economic benefits and minimizing disputes, complaints, impacts on the investment environment, ensuring security and order, national energy security and harmonizing state and investor interests; Protecting the legitimate rights and interests of bona fide third parties in accordance with the provisions of law.

At the same time, in the 6 groups of solutions, it is stated that: For projects that are enjoying FIT prices but violate the Conclusion of the competent authority due to not fully meeting the conditions to enjoy FIT prices, they will not enjoy preferential FIT prices but must re-determine the electricity purchase and sale prices according to regulations; recover the preferential FIT prices that have been enjoyed incorrectly through offset payment for electricity purchases.

Fear of international litigation risk

Regarding the issue of payment and price settlement for renewable energy projects, Vietnam Electricity Group (EVN) has also sent reports to the Ministry of Industry and Trade updating the results of work on renewable energy projects according to Resolution 233. In these reports, EVN also said that it has proposed specific solutions for each type of project.

Accordingly, EVN proposed a solution: 25 solar plants/parts of solar plants (total capacity of 1,278MWp) currently paying according to FIT1 price will be temporarily paid according to FIT2 price because the time of issuing the document approving the acceptance results falls at the time of enjoying FIT2. 93 solar plants/parts of solar plants (total capacity of 7,257MWp) currently paying according to FIT price (including FIT1 and FIT2) will be temporarily paid according to the transitional ceiling price, because the document approving the acceptance results comes after the time FIT2 expires.

14 wind power plants/parts (total capacity 649MW) currently paying according to FIT price will be temporarily paid according to transitional ceiling price. For power plants that do not have documents approving the acceptance results, EVN will temporarily pay the operation and maintenance costs.

However, with this solution, the Ministry of Industry and Trade stated that EVN's reports have not yet met the requirements of Resolution 233, in the direction of "choosing the optimal handling solution based on analysis, evaluation, comparison of socio-economic benefits and minimizing disputes, complaints, and impacts on the investment environment; ensuring national security and order, energy security and harmonizing State and investor interests.

Notably, EVN said that in the working minutes and official documents, investors all mentioned and reserved the right to complain and sue in case EVN made temporary payments. EVN believes that the risk of complaints and disputes (including international complaints) is entirely possible on a large scale. Therefore, EVN recommends that the Ministry of Industry and Trade consider and coordinate with relevant ministries to make a comprehensive assessment of the socio-economic impact, risks of domestic and international complaints, and impacts on the investment environment for the plan proposed by EVN. From there, decide on the optimal plan to direct and guide EVN to implement.

Most recently, EVN also issued a document requesting EVNEPTC to urgently review, research, prepare legal bases, compare legal regulations and Resolution 233 to implement and prepare for arising situations; Ensure implementation complies with legal regulations and instructions of competent state agencies.

If necessary, EVNEPTC proactively selects a reputable, capable and experienced legal consultancy to support EVNEPTC with legal issues in the process of resolving existing problems of renewable energy projects, ensuring the legal and legitimate rights of the State, the corporation and electricity users.

Regarding the resolution of these long-standing problems, recently, Deputy Prime Minister Nguyen Hoa Binh requested that these difficulties and problems be handled more quickly and decisively; the responsibilities of ministries, branches and localities must be addressed and resolved by those agencies in the spirit of having a specific and clear direction, plan and completion time.

Mr. Bui Quoc Hung - Deputy Director of Electricity Department: Proposing to coordinate in assessing the possibility of international lawsuits
Mr. Bui Quoc Hung.
Problems related to COD commercial operation and FIT price enjoyment of solar and wind power projects are under the jurisdiction of EVN. The Ministry of Industry and Trade has issued many documents urging EVN to find optimal solutions in determining FIT price enjoyment. However, EVN has not yet reported specific results.
According to the resolution principles of Resolution No. 233 of the Government on removing difficulties and obstacles for projects under the authority of which agency, level, sector, or locality, that agency, level, sector, or locality must resolve. The Ministry of Industry and Trade is assigned to synthesize and urge relevant ministries, sectors, and localities to resolve difficulties and obstacles within their authority to report to the Government. Therefore, resolving difficulties regarding FIT prices is under the authority of EVN.
In Conclusion No. 1027, the Government Inspectorate concluded that “the responsibility for the shortcomings and violations of COD recognition and electricity purchase from solar and wind power plants at the current fixed price belongs to the project investors, EVNEPTC and EVN”. Thus, EVN is the competent authority and responsible for resolving COD issues to determine FIT prices, and is responsible for coordinating with investors to come up with a decision plan and agree on FIT prices for renewable energy projects.
The Ministry of Industry and Trade has also recommended to the Government leaders and Steering Committee 751 to consider and direct the possibility of disputes and lawsuits based on EVN's report and the results of the meeting to discuss and listen to opinions from businesses, associations and investors. Accordingly, the Ministry warns that the risk of international disputes and lawsuits is entirely possible on a large scale and for a long time for renewable energy projects. Therefore, the Ministry has proposed that the Government assign the Ministry of Justice to preside over and coordinate with EVN and relevant agencies to study and evaluate, and promptly report to the Government on this issue.
H. Fresh (recorded)