Nearly a decade ago, mentioning Thuan Nam, Ninh Hai, Bac Ai, Thuan Bac (old Ninh Thuan, now Khanh Hoa) or Tuy Phong, Bac Binh (old Binh Thuan , now Lam Dong) mentioned lands that were dry all year round, where the grasslands burned yellow under the harsh sun, and the ground was full of rocks and gravel.
"Dogs eat stones, chickens eat gravel" is a saying that locals use to describe the harsh land where they have clung to for generations. Agriculture is unstable, and the main livelihood of the people depends on raising sheep and goats.
Then one day, a line of heavy trucks came to the white sand area, erected poles, installed batteries, and pulled wires. After only a few months, the sun-baked fields in Ninh Thuan and old Binh Thuan were covered with millions of solar panels and white wind turbines.
It is hard to imagine that these lands, once considered “uncultivable”, have become the destination of a series of the country's largest energy investors. Sun and wind, which were once challenges, have now become advantages, helping these two localities contribute billions of kWh of clean electricity each year to the national power system.
In 2011, the Feed-in Tariff (FIT) mechanism for renewable energy was first issued in Vietnam, applied to wind power projects at a price of 7.8 US cents/kWh (more than 2,044 VND/kWh at the current exchange rate), according to Decision 37/2011. In 2018, Decision 39/2018 adjusted the FIT price for onshore wind power projects with a commercial operation date (COD) before November 1, 2021 to 8.5 cents/kWh (2,227 VND/kWh).
For ground-mounted solar power projects, the FIT price first applied under Decision 11/2017 was 9.35 cents/kWh (more than 2,449 VND/kWh) and was only applied to grid-connected projects from June 1, 2017 to June 30, 2019. In April 2020, the Government issued Decision 13/2020 with the FIT 2 solar power price list for solar power.
The purchase price of ground-mounted solar power is 7.09 cents/kWh (more than 1,857 VND/kWh). This unit price will be extended for 20 years but only applies to projects that have been put into operation and have confirmed meter readings by December 31, 2020.
A series of preferential FIT price policies with many development stages created a strong investment push at that time. Many investors flocked to localities with advantages in heat radiation and wind speed such as the southern part of Khanh Hoa province and the northeastern part of Lam Dong province (the two former provinces of Ninh Thuan and Binh Thuan).
In particular, the former Ninh Thuan province enjoys a preferential FIT price of 9.35 cents/kWh until the end of 2020 for solar power projects and connection infrastructure with a designed capacity of 2,000MW approved for implementation by the Prime Minister.
Many investors are racing every day to meet the commercial operation schedule ahead of schedule. In the southern communes of Khanh Hoa province such as Phuoc Dinh, Ca Na, Thuan Nam, etc., solar power capacity has exploded, quickly exceeding the permitted planning level. In the northeastern region of Lam Dong province, many wind turbine fields cover the coastal areas of Bac Binh, Lien Huong, and Tuy Phong.
From 86MW in 2018, solar power capacity skyrocketed to 4,464MW by the end of June 2019 - when the FIT 1 incentive expired. At that time, the country had 89 wind and solar power plants, with a total installed capacity of 4,543.8MW, accounting for 8.3% of the total capacity of the national power system.
This figure far exceeds the forecast of the revised Power Plan 7 (only 850MW of solar power in 2020). Of which, the two old provinces of Ninh Thuan and Binh Thuan alone had 38 wind and solar power plants, with a total installed capacity of 2,027MW, as of July 2019. EVN leaders at that time stated that the number of new solar power plants put into operation in just 3 months was a record in the history of the electricity industry.
And by the end of 2020 - when the FIT 2 price incentive for solar power expired, the total installed capacity of solar power nationally had reached 16,500MW, accounting for about 25% of the total installed capacity of the national power system.
In the old Ninh Thuan, large solar power projects have appeared in droves, such as BIM Group's BIM 1, 2, 3 plant cluster in Phuoc Ninh and Phuoc Minh communes, with a total capacity of more than 330MW, completed and generating electricity since April 2019. Nearby, the Trung Nam solar power plant in Bac Phong and Loi Hai communes with a capacity of 204MW has also officially operated since July 2019.
In addition, the CMX Renewable Energy Vietnam solar power plant project (168MW) and My Son 1 plant (50MW) in Ninh Son commune also came into operation in 2019, the Trung Nam Thuan Nam solar power plant project (450MW) operated in October 2020...
Meanwhile, wind power is also rushing strongly with a series of turbine towers rising high along the southern coast of Khanh Hoa province. Lien Huong commune (Lam Dong), where the first wind power project in Vietnam (2009) was located, is also not out of the race.
In the 2017-2021 period, the province attracted dozens of wind power projects with a total capacity of thousands of MW, especially factories in Tuy Phong, Bac Binh, and Ham Thuan Nam districts such as Dai Phong Wind Power Plant (50MW) in commercial operation from July 2020; Phu Lac Wind Power Plant Phase 2 (25MW) in commercial operation from October 2021...
By October 31, 2021 - when the FIT price mechanism for wind power expires, 69 projects with a total capacity of 3,298 MW have been recognized for commercial operation. The national power system has a total of 84 wind power plants with a total capacity of 3,980 MW.
From 518MW by the end of 2020, wind power installations increased to nearly 4,000MW in just one year. The increase in the wind power FIT in 2018 played an important role in stimulating this growth.
A series of incentive policies, especially the attractive FIT price, have triggered a strong wave of investment both domestically and internationally, with thousands of billions of VND pouring into wind and solar power projects in Vietnam. The excitement of the Vietnamese renewable energy market has attracted a series of international "giants" from France, the Netherlands to the Philippines, Thailand, China, etc.
Not only does it bring about changes in the landscape, renewable energy also opens up new opportunities for employment, infrastructure and contributes greatly to local budgets. The FIT price policy has been effective in promoting renewable energy production, but it has not been accompanied by a plan to develop and upgrade the transmission and distribution system synchronously.
The simultaneous operation of renewable power plants in a short period of time also leads to overloading of the transmission grid in some areas, typically the two old provinces of Binh Thuan and Ninh Thuan. Most of the 110-500kV lines and transformer stations in these two areas are overloaded, including lines overloaded up to 360%... Renewable energy plants in these areas must reduce generation at each time to safely operate the system.
In particular, in 2020, the electricity industry witnessed a surge in renewable energy, notably rooftop solar power. In June 2020, rooftop solar power output reached 6,000MWp, but by December 2020 it had increased to 10,000MWp. The Power System Control Center had to cut 365 million kWh.
After the boom period, the development trend of solar and wind power suddenly "braked" due to the end of the FIT price mechanism and the lack of a suitable replacement mechanism. Although the Ministry of Industry and Trade has issued a price framework for transitional renewable energy projects, soliciting parties to negotiate electricity prices and sign power purchase agreements (PPA), negotiations have been deadlocked for many years due to a series of reasons.
Many wind and solar power projects have generated electricity for the grid but have not yet agreed on the COD date and official electricity selling price. A series of old projects have encountered financial difficulties due to not receiving full payment from EVN or not being able to negotiate new PPAs. Meanwhile, in the past 4 years, many investors have not been able to develop new projects due to slow planning announcement.
The biggest difficulty for investors comes from the lack of a clear and unified electricity price mechanism. After the preferential FIT price expires, projects that have been invested in and implemented but have not been completed before the FIT price deadline are classified as "transitional" and are forced to negotiate with EVN according to the temporary price issued by the Ministry of Industry and Trade (Decision 21/2023). However, the prolonged negotiation of official prices has caused many investors to face difficulties in investment and operation due to waiting for a unified electricity price.
EVN's latest data shows that through the Electricity Trading Company (EVNEPTC), the group is negotiating PPAs with 85 power plants/parts of transitional renewable energy plants with a total capacity of more than 4,734MW, including 77 wind power projects and 8 solar power projects.
After more than 2 years, only 16/85 transitional renewable power projects with a total capacity of more than 943MW have agreed on the official electricity purchase price. Of these, 10 projects (532MW) have officially signed a contract to amend and electricity prices and 6 supplement projects (411MW) are in the process of completing the draft contract, ready to sign. In addition, 30 projects with a total capacity of more than 1,631MW have completed COD; 41 projects, equivalent to more than 2,516MW, have submitted documents for electricity price negotiation.
The pursuit of deadlines to enjoy FIT prices has caused some investors to shorten the implementation process, ignore necessary procedures, and in some cases even violate planning and legal regulations...
A series of renewable energy projects have been put into commercial operation and enjoyed FIT prices according to decisions, but the Government Inspectorate's conclusion at the end of 2023 pointed out that many projects did not have enough procedures to enjoy those prices. According to the report of the Ministry of Industry and Trade, there are more than 170 solar and wind power plants/parts of grid-connected solar power plants facing this situation.
The Government Inspectorate also concluded that 154 solar power projects added to the planning by the Ministry of Industry and Trade had no legal basis. After the inspection conclusion, many projects encounter difficulties in implementing the conclusion, leading to delays or incomplete payment of electricity bills.
Recently, the authorities have proposed solutions to overcome the violations of renewable energy projects. Among the solutions to overcome the difficulties of energy projects, the authorities proposed that projects that violate the regulations and do not meet the conditions will not enjoy preferential prices and must re-determine the electricity price. At the same time, the preferential FIT prices that have been incorrectly enjoyed will be recovered through compensation and payment for electricity purchases.
Therefore, instead of enjoying the solar power purchase price of up to 9.35 cents/kWh according to FIT 1 price or 7.09 cents/kWh according to FIT 2 price, projects at risk of enjoying the same price as transitional projects, which is no more than 1,184.9 VND/kWh.
In the petition in May, many investors expressed concerns about the handling of the proposals. In particular, EVNEPTC's proposal to make temporary payments for electricity according to the principle of applying electricity prices equivalent to FIT prices or the ceiling price of the transitional price frame at the time the plant has a document accepting the results of the acceptance test (CCA) while waiting for instructions.
This group of investors also said that since January, EVNEPTC has unilaterally withheld a portion of the payment by applying a temporary price list. The businesses proposed to continue implementing the COD date as initially approved.
Besides the projects that are still facing difficulties, some projects have gradually had their legal procedures resolved, such as the project of TTC Group with the Duc Hue 2 Solar Power Plant (Duc Hue District, Long An) of TTC which has been added to the planning and is under construction, expected to be energized this year...
On December 10, 2024, the Government issued Resolution 233 to remove difficulties and obstacles for investors.
The resolution requires the Ministry of Industry and Trade to preside over and coordinate with EVN and localities to review the entire list of transitional projects, accelerate licensing, accept and determine temporary electricity prices to facilitate businesses to generate electricity to the grid. At the same time, the Government directs to review the auction and bidding mechanism for electricity purchase in a transparent and stable manner, in order to restore investor confidence.
Responding to Dan Tri newspaper reporters regarding the difficulties of renewable energy enterprises, Deputy Director of the Electricity Department (Ministry of Industry and Trade) Bui Quoc Hung said that the Ministry has had many solutions to remove difficulties and obstacles for renewable energy projects.
Regarding planning, the Ministry issued a decision to complete the planning to ensure renewable energy projects. At the same time, the Government also issued Decision 768/2025 to adjust Power Plan 8, which updates the renewable energy projects that are stuck in this planning.
"Thus, the current planning issues of renewable energy projects have been resolved," said Mr. Hung.
Regarding the issues related to the COD mechanism and FIT price, Mr. Hung said that the issues related to this issue are under the jurisdiction of EVN, according to the Electricity Law. The Ministry of Industry and Trade has issued many documents directing EVN to remove and completely handle related issues, especially in determining the right to enjoy FIT price. However, up to now, EVN has not had an official report.
According to the resolution principles of Resolution 233, the removal of difficulties and obstacles for projects under the authority of which agency, level, sector or locality must be resolved by that agency, level, sector or locality. 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.
Mr. Hung added that the Ministry of Industry and Trade has also sent many documents to relevant localities to remove difficulties for renewable energy projects, and has also sent many reports to the Government for implementation, but so far the removal has not been completed.
Regarding EVNEPTC's temporary withholding of payment for some renewable power projects as well as the proposal to adjust FIT prices for these projects, the leader of the Electricity Department said that according to the provisions of the law on electricity, the negotiation, signing of electricity purchase and sale contracts and recognition of COD of solar and wind power projects are under the authority of EVN.
The Ministry of Industry and Trade has recently issued many circulars supporting investors, EVN, and related units with forms for implementing electricity purchase and sale contracts such as Circular 18/2020, Circular 16/2017, Circular 02/2019.
On May 29, based on EVN's report, the Electricity Authority held a dialogue meeting with more than 36 representatives of businesses and associations to discuss, listen to opinions and reflect on the progress of resolving difficulties for renewable energy projects.
"In principle, according to Resolution 233, the removal of difficulties and obstacles for projects is under the authority of that agency, level, sector, or locality. The Ministry of Industry and Trade is assigned the task of synthesizing and prompting relevant ministries, sectors, and localities to resolve obstacles within their authority to report to the Government," he said.
The Ministry of Industry and Trade has sent many reports to the Government leaders and Steering Committee 751 reflecting the difficulties in FIT prices, and at the same time requested EVN to urgently resolve them in accordance with the spirit of Resolution 233.
"According to Conclusion 1027 of the Government Inspectorate, the responsibility for concerns and violations in COD recognition and electricity trading of solar and wind power plants at fixed prices belongs to the investor, the electricity trading company and EVN. Thus, EVN is the competent authority and responsible for resolving COD issues to determine FIT prices," said Mr. Hung.
According to the leader of the Electricity Authority, EVN is also responsible for coordinating with investors to come up with a decision plan and agree on FIT price for the projects. The Ministry of Industry and Trade has proposed that the Government leaders and Steering Committee 751 consider directing relevant units, based on EVN's report and the results of the meeting with businesses, associations, and investors.
"According to the Ministry of Industry and Trade, 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 recommends that the Ministry of Justice take the lead, coordinate with EVN and relevant agencies to research, evaluate and soon report to Deputy Prime Minister Nguyen Hoa Binh and Steering Committee 751," said Mr. Hung.
Currently, negotiations between EVN and investors are still facing many difficulties. Investors do not agree with the solution of temporary payment and temporary price application for EVN's current renewable energy projects.
As of April, there were 172 solar and wind power plants/parts of power plants lacking the acceptance results document from the authorized state agency at the time of COD recognition. EVNEPTC has worked directly with the investors of 159 plants/parts of power plants with acceptance results document after COD date. The investors of 14 power plants/parts of power plants without accepting results document did not attend the meeting, EVN is temporarily suspending payment.
EVN is making provisional payments from January for 159 factories/parts of factories. 25 factories/parts of factories (total capacity of 1,278MWp) that are paying according to the preferential price FIT 1 will make provisional payments according to the preferential price FIT 2; 93 solar factories/parts of factories (total capacity of 7,257MW) that are paying according to the FIT price will make provisional payments according to the transitional ceiling price.
There are 14 wind power plants/parts of wind power plants (capacity 649MW) that are being paid at preferential prices and will be temporarily paid at the transitional ceiling price. There are also 13 plants that have not received a document approving the acceptance results, EVN will temporarily pay according to the operating and maintenance costs.
According to EVN, during the negotiation process, EVNEPTC and investors have faced a number of challenges related to the completion of legal documents. Some projects are still in the process of adjusting investment policies, extending progress or clarifying information on planned capacity. EVNEPTC has proactively requested investors to work with competent state agencies to complete the process.
Regarding power output and total investment, EVN said that there are sometimes discrepancies between power output figures in design documents and actual operations or negotiated parameters. Similarly, reviewing investment costs to ensure compliance with Circular 12 also requires careful examination of contracts and documents.
Regarding the difficulties of renewable energy projects, at a workshop in late May, Mr. Nguyen Tai Anh, Deputy General Director of EVN, said that the Government has issued Resolution 233 on removing obstacles and difficulties for renewable energy projects. EVN is also thoroughly implementing Resolution 233 and handling it thoroughly.
Sharing with Dan Tri newspaper reporter, Mr. Tran Quoc Nam, Chairman of Khanh Hoa Provincial People's Committee, said that the southern region of Khanh Hoa province (formerly Ninh Thuan province) continues to identify energy and renewable energy as the growth engine and key investment attraction sector of the province.
"Khanh Hoa is very honorable to have the responsibility of being assigned by the Central Government to continue to restart the construction of the nuclear power plant. This is an important national project, which is significant in ensuring energy security to prepare for the new era of the country, creating an important driving force to promote socio-economic development in the southern region of the province," he said.
Provincial leaders assessed that the project also impacts and promotes the development of other economic sectors: Supporting industries for the production of high-tech equipment, construction materials and renewable energy industries; tourism and research activities; financial services, banking, and health care. created, it is expected that the nuclear power project will contribute to additional growth for the industry, construction and services sectors compared to the scenario where the nuclear power plant has not been started.
At the end of May, the Department of Industry and Trade of the old Ninh Thuan province reported on the implementation of power projects under Power Plan 8 and the revised Power Plan 8. evident, according to the State management agency, Power Plan 8, the province has 22 renewable energy projects. The locality has approved investors for 8 projects/2,677MW; 14 projects/2,051MW are in the process of selecting investors.
These are Phuoc Hoa Pumped Storage Hydropower Project, Bac Ai Pumped Storage Hydropower Project, Phuoc Huu Wind Power Plant, Vietnam Power Wind Power Plant No. 1, Cong Hai 1 Wind Power Plant - Phase 1 and Phase 2, Phuoc Nam - Enfinity - Ninh Thuan Renewable Energy Power Plant and part of the capacity of Hanbaram Wind Power Plant.
For the 8 projects that have approved investment policies, there are currently some difficulties in issuing electricity price mechanisms. The Provincial People's Committee has sent a document to the Ministry of Industry and Trade. For the Cong Hai 1 Wind Power Plant project - phase 1 and phase 2 of Power Generation Corporation 2 - Joint Stock Company - there is also no electricity price mechanism.
Recently, the Provincial People's Committee has also directed relevant departments and localities to remove difficulties and speed up the implementation of renewable energy projects, especially projects with land acquisition problems such as Bac Ai pumped storage hydropower plant and Vietnam Power No. 1 wind power plant project.
Despite many obstacles, the efforts of localities in removing bottlenecks and creating favorable conditions for investors are positive signals for the future of renewable energy. However, to move from "hot" development to sustainable development, according to experts, this sector needs a more synchronous and stable policy framework.
The transition from the FIT price mechanism to competitive models such as bidding is a step in the right direction in the current context, creating a transparent and fair environment, helping to screen out real investors. When policies, infrastructure and markets operate in harmony, that is when renewable energy can truly play its pivotal role in ensuring national energy security and long-term green development.
Climate change is becoming more and more severe. Energy security has become a matter of survival for every country. The trend of shifting from fossil fuels to clean energy is taking place strongly. In Vietnam, this process is an urgent requirement to ensure sustainable development, in line with international commitments.
Power Plan 8, issued in 2023 and adjusted in April 2025, has set the goal of a fair energy transition, strongly developing renewable energy, gradually reducing dependence on coal power, while promoting gas power, wind power, solar power, biomass power and nuclear power. However, the implementation process is still facing many challenges when many projects have been invested but the official electricity price has not been agreed, the upgrade of transmission infrastructure is still slow, has not kept up with the speed of power source development, and planning work is still lacking in synchronization...
The series of articles “Fair energy transition in the 8th power plan” by Dan Tri Newspaper will reflect the overall picture of the orientation, clarifying the current situation in the South, especially in localities with great potential for renewable energy development such as Ninh Thuan and Binh Thuan, while recording the thoughts and expectations of people and businesses in the transition process. The series of articles contributes to spreading awareness, promoting policy dialogue and suggesting solutions for a sustainable and effective energy development future.
Source: https://dantri.com.vn/lanh-doanh/dien-sach-hau-con-sot-hang-nghin-ty-dong-ket-giua-rao-can-chinh-sach-20250704205328007.htm
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