After the Feed-in Tariff (FIT) mechanism was issued for wind power (in 2011) and solar power (in 2017), the renewable energy market in Vietnam recorded an unprecedented explosive growth rate.
A series of solar power projects are "racing" to be licensed in a short time, hoping to enjoy preferential pricing policies for 20 years, according to Decision 11/2017.
If in 2018 there were only 3 successful solar power projects, then after only about a year (up to May 26, 2019), the National Power System Control Center (A0) has energized 34 solar power plants, with a total installed capacity of nearly 2,200MW.
By the end of June 2019 - when the FIT price incentive expired, the country had 89 wind and solar power plants, with a total installed capacity of 4,543.8 MW, accounting for 8.3% of the total capacity of the national power system. This figure far exceeded the projection of the revised Power Plan 7 (only 850 MW of solar power in 2020).
Ninh Thuan and Binh Thuan (before the merger) are the two localities with the largest number of solar and wind power plants. In just a short period of time, a series of factories have sprung up on land that was once just a place for grazing goats and sheep. This "hot" development has led to the fact that most of the 110-500kV power lines and transformer stations in the two provinces are overloaded, with some lines being overloaded up to 360% in 2019.
After a wave of strong investment, this development trend 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, urging parties to negotiate electricity prices and sign power purchase contracts, negotiations remain deadlocked due to many reasons.
According to Dan Tri reporters , by early June, many trillion-dong assets in the country's clean energy "capital" were still operating at a standstill, waiting for the electricity price to be agreed upon. Many projects had been completed but had not yet signed a power purchase agreement (PPA) or had their capacity cut regularly due to grid congestion.
The main problem with renewable energy projects is that the plants have been put into commercial operation and have enjoyed FIT prices according to decisions, but later the inspection agency said that many projects did not have enough procedures to enjoy those prices.
Located in 3 communes of Phuoc Minh, Nhi Ha and Phuoc Ninh, the Trung Nam - Thuan Nam Solar Power Plant project (Thuan Nam, old Ninh Thuan province) is invested by Trung Nam - Thuan Nam Solar Power Company Limited (under Trungnam Group) with a capacity of 450MW. This plant is built with a 500kV transformer station and a 220kV line. The project has a total area of about 660ha, completed and put into operation since October 2020.
The project has more than 1.4 million solar panels installed over a large area, forming one of the largest solar power project clusters in the country. Every day, this system produces an average of millions of kWh of electricity, contributing to meeting the energy consumption needs of hundreds of thousands of households in the South Central region.
Regarding the issue of electricity price payment for the Trung Nam - Thuan Nam Solar Power Plant project, in April 2024, EVN said that after the FIT price expires, the Government will assign EVN to negotiate the transitional electricity price based on actual investment costs. In the past, EVN has mobilized the capacity of the solar power plant to the grid and paid for the output and capacity according to the group's license.
For the part that meets legal regulations, EVN has paid in full. For the transitional part, EVN is also paying according to the temporary price frame for transitional renewable energy projects approved by the Ministry of Industry and Trade.
The 500kV transformer station and transmission line system in Thuan Nam, Ninh Thuan (old) was built to relieve capacity for renewable energy projects in the region, and at the same time connect directly to the national power transmission system. This is one of the important infrastructure solutions to overcome the grid overload that has caused many projects to delay commercial operation.
Up to now, this transformer station and power line system is still owned by Trung Nam. Previously, the company proposed to hand over the assets to EVN without any money, but there are still problems with legal procedures and is in the process of implementing according to instructions.
At the central control room, engineers are on duty 24/7 to monitor the system and track every operating parameter from the solar field spanning hundreds of hectares. On average, during the peak sunny months, the plant contributes about 100 million kWh of electricity per month to the national grid, helping to ensure supply for the South Central region and surrounding areas.
In the renewable power plant’s control room, engineers meticulously monitor the electrical cabinet system, where hundreds of important technical parameters are concentrated. From here, all activities of the solar panels are closely monitored, contributing to ensuring clean electricity is transmitted to the national grid in a stable and safe manner.
Currently, many projects are still facing many obstacles after the Government Inspectorate's Conclusion 1027 in 2023 pointed out many violations and limitations in the implementation of renewable energy projects. The Government Inspectorate 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 were unable to negotiate power purchase contracts or had not been paid for electricity.
On December 10, 2024, the Government issued Resolution 233 to remove the long-standing difficulties and obstacles for renewable energy projects. 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, acceptance and determination of temporary electricity prices to facilitate businesses to generate electricity to the grid.
At the same time, the Government directed to review the auction and bidding mechanism for electricity purchase in a transparent and stable manner, in order to restore investor confidence.
EVN is the competent authority and responsible for resolving difficulties in commercial operation (COD) to determine FIT price, and is responsible for coordinating with investors to come up with a decision plan and agree on FIT price for renewable power projects.
However, the negotiations between EVN and investors still have many problems. Investors do not agree with the solution of temporary payment and temporary price application for EVN's current renewable energy projects.
According to records, many wind and solar power projects in Ninh Thuan (old) are still operating at a low level. Many projects that have been connected to the grid are also facing a reduction in capacity, causing investors to bear the burden of construction and operating costs.
The wind turbine system is densely concentrated in the coastal area near Ca Na port. The turbine towers are tens of meters high and are arranged consecutively. This is one of the areas with the highest wind power density in the Central region, taking advantage of strong, stable winds all year round.
In a recent urgent petition, a group of renewable energy investors expressed concern about the handling of the proposals, especially the proposal of the Electricity Trading Company under EVN (EVNEPTC), which will 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 accepts the acceptance 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.
In the latest report sent to the Ministry of Industry and Trade, EVN said there was not enough information to assess the overall impact on the socio-economy and the domestic and international investment environment because this is a macro issue, requiring assessment support from higher levels of state management.
In the working minutes and official documents afterwards, the 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.
As of April, there were 172 solar and wind power plants/parts of power plants that had not yet received acceptance test results from competent state agencies at the time of COD recognition. EVNEPTC worked directly with the investors of 159 plants/parts of power plants that had documents approving acceptance test results after COD date. The investors of 14 power plants/parts of power plants that had not received documents approving acceptance test results did not attend the meeting, and EVN is temporarily suspending payment.
On the side of the Ministry of Industry and Trade, in report 148/BC-BCT dated June 3, the Ministry 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 promptly report to Deputy Prime Minister Nguyen Hoa Binh and Steering Committee 751.
EVN is making provisional payments from January for 159 factories/parts of factories. Specifically, 25 factories/parts of factories (total capacity of 1,278MWp) currently 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) currently paying according to the FIT price will make provisional payments according to the transition price.
There are 14 wind power plants/parts of wind power plants (total capacity of 649MW) that are paying according to preferential prices and will temporarily pay according to direct ceiling prices, and the remaining 27 plants/parts of plants that have documents approving the acceptance results during the preferential price period are still paying according to the preferential prices stipulated in the signed power purchase contracts. There are also 13 plants that have not yet received acceptance results, EVN will temporarily pay according to operating costs so that investors have the costs to operate the plants.
After nearly a decade of investment boom, solar and wind power projects have changed the face of the sunny and windy South Central region, turning it into the renewable energy capital of the country. However, after a period of "racing" to build in time to enjoy the FIT price incentives, many investors are in a difficult situation. Many projects have generated electricity but have not yet finalized the selling price or agreed on the commercial operation date.
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 unified, 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, clarify 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 proposing solutions for a sustainable and effective energy development future.
Dantri.com.vn
Source: https://dantri.com.vn/kinh-doanh/nhung-canh-dong-pin-mat-troi-tuabin-gio-nghin-ty-dong-sau-thoi-ky-bung-no-20250617175459517.htm
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