Electricity-generating solar panels mounted on the roof of a building in Binh Thuan province (Photo: thanhnien.vn) Hanoi (VNS/VNA) - Someprovinces have called for preferential solar power prices to be extended to theend of 2020 instead of June 30, 2019.
Most recently, the southern province of Binh Thuan sent aproposal to the Prime Minister asking for such an extension to removedifficulties and create favourable conditions for investors of solar powerprojects.
To encourage the development of renewable energy in Vietnam,the Prime Minister issued Decision 11/2017/QĐ-TTg dated April 11, 2017, aboutmechanisms to encourage solar power projects, which took effect on June 1, 2017and lasts until June 30, 2019.
Accordingly, for solar power projects which were connectedto the national power grid before June 30, 2019, Vietnam Electricity (EVN)would buy the entire power output at 2,086 VND (9.35 US cents) per kWh for 20years.
This means that if solar power projects are not connected tothe grid before the June 30, 2019 deadline, the purchasing price of electricitycould be lower and won’t be fixed for 20 years.
According to the People’s Committee of Binh Thuan province,there were 113 areas in the southern province with the potential for developingsolar power projects over a total area of 14,198 hectares and potential outputof 11,648 MWp.
While Binh Thuan province’s solar power development planningproject to 2020 was waiting for approval from the Ministry of Industry andTrade, some 90 solar projects were registered in the province with total outputof 5,341 MWp, total area of 6,720 hectares and total capital of 137.2 trillionVND (5.97 billion USD).
Of them, 28 projects with a total capacity of 1,475 MWp wereadded to the national and provincial power development plan. Twenty-threeprojects were granted licences and investors pledged to start construction bythe end of 2018 and generate power before June 30, 2019.
For other projects, investors were preparing for theirinvestment licences.
The province, however, said that it was difficult for solarpower projects in the province to be completed and generate power before theJune 30, 2019 deadline because many of them were located in areas of nationaltitanium reserves and must wait for approval from the Prime Minister before implementation.
Thus, Binh Thuan province asked that the deadline beextended to the end of 2020 to give investors time to complete the projects.
Binh Thuan province’s proposal was raised after the PrimeMinister agreed to extend the deadline to the end of 2020 for solar powerprojects with capacities of more than 2,000 MW in Ninh Thuan province.
Energy experts were concerned that other provinces, like KhanhHoa and Binh Phuoc, could also ask for the extension.
Khanh Hoa province now has 17 solar power projects to bedeveloped with a total capacity of 700MWp and Binh Phuoc has 22 projects withcapacity of 2,500 MWp in total.
The Ministry of Industry and Trade in September requiredlocalities to evaluate the compliance with planning of 205 registered solarpower projects with a total capacity of 16,500 MWp nationwide.
These projects did not include more than 70 others with atotal capacity of 3,000 MWp already approved to be added to the powerdevelopment planning and pledged to be put into operation before June 30, 2019.
As of the end of September, EVN signed 35 power purchaseagreements with solar power investors with a total capacity of 2,271 MW.-VNS/VNA
Most recently, the southern province of Binh Thuan sent aproposal to the Prime Minister asking for such an extension to removedifficulties and create favourable conditions for investors of solar powerprojects.
To encourage the development of renewable energy in Vietnam,the Prime Minister issued Decision 11/2017/QĐ-TTg dated April 11, 2017, aboutmechanisms to encourage solar power projects, which took effect on June 1, 2017and lasts until June 30, 2019.
Accordingly, for solar power projects which were connectedto the national power grid before June 30, 2019, Vietnam Electricity (EVN)would buy the entire power output at 2,086 VND (9.35 US cents) per kWh for 20years.
This means that if solar power projects are not connected tothe grid before the June 30, 2019 deadline, the purchasing price of electricitycould be lower and won’t be fixed for 20 years.
According to the People’s Committee of Binh Thuan province,there were 113 areas in the southern province with the potential for developingsolar power projects over a total area of 14,198 hectares and potential outputof 11,648 MWp.
While Binh Thuan province’s solar power development planningproject to 2020 was waiting for approval from the Ministry of Industry andTrade, some 90 solar projects were registered in the province with total outputof 5,341 MWp, total area of 6,720 hectares and total capital of 137.2 trillionVND (5.97 billion USD).
Of them, 28 projects with a total capacity of 1,475 MWp wereadded to the national and provincial power development plan. Twenty-threeprojects were granted licences and investors pledged to start construction bythe end of 2018 and generate power before June 30, 2019.
For other projects, investors were preparing for theirinvestment licences.
The province, however, said that it was difficult for solarpower projects in the province to be completed and generate power before theJune 30, 2019 deadline because many of them were located in areas of nationaltitanium reserves and must wait for approval from the Prime Minister before implementation.
Thus, Binh Thuan province asked that the deadline beextended to the end of 2020 to give investors time to complete the projects.
Binh Thuan province’s proposal was raised after the PrimeMinister agreed to extend the deadline to the end of 2020 for solar powerprojects with capacities of more than 2,000 MW in Ninh Thuan province.
Energy experts were concerned that other provinces, like KhanhHoa and Binh Phuoc, could also ask for the extension.
Khanh Hoa province now has 17 solar power projects to bedeveloped with a total capacity of 700MWp and Binh Phuoc has 22 projects withcapacity of 2,500 MWp in total.
The Ministry of Industry and Trade in September requiredlocalities to evaluate the compliance with planning of 205 registered solarpower projects with a total capacity of 16,500 MWp nationwide.
These projects did not include more than 70 others with atotal capacity of 3,000 MWp already approved to be added to the powerdevelopment planning and pledged to be put into operation before June 30, 2019.
As of the end of September, EVN signed 35 power purchaseagreements with solar power investors with a total capacity of 2,271 MW.-VNS/VNA
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