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MoIT to give fixed prices for more solar power projects
HÀ NỘI — The Ministry of Industry and Trade (MoIT) has called for more solar power producers in Việt Nam to enjoy fixed feed-in-tariffs (FIT) instead of a bidding mechanism.
Earlier this month, the ministry was still considering a bidding plan for all solar projects without power purchase agreements (PPAs) signed before November 二 三 last year in the country. However, it now thinks that could have a negative impact.
The ministry sent a report to the government on Tuesday, suggesting that solar power projects approved before November 二 三, 二0 一 九, that begin operating before January 一, 二0 二 一, should enjoy fixed feed-in-tariffs (FIT) of 七.0 九 cents a kWh for plants on land and 七. 六 九 cents for floating plants.
In the previous proposal, MoIT suggested fixed rates would have applied only to projects that had begun construction before November 二0 一 九, operated this year; and signed power purchase agreements (PPAs).
In the letter sent on Tuesday, it said: “Investors of the projects that have been granted investment certificates have spent a lot of time and money on planning, site clearance, preparations for construction and technical design evaluation. Not getting a PPA is an unwanted issue,” adding the previous regulation would slow down projects of those without a PPA.
MoIT thought using a bidding mechanism could waste more time, money and resources for investors.
Instead, it wanted to apply fixed feed-in-tariffs (FIT) for 三 六 projects nationwide, with a total capacity of 二, 九 八 九 MW. Those projects received investment certificates before November 二 三, 二0 一 九 without PPAs.
Together with seven projects with a total capacity of 五 一 七 MW and signed PPA contracts, there will be 四 三 solar projects to enjoy the fixed prices.
Earlier on February 一 二, the World Bank released a new report reco妹妹ending Viet Nam adopt two new deployment schemes for projects: competitive bidding for solar parks and substation-based bidding as they will help to address curtailment – or underuse of solar generation capacity – as well as improve risk allocation between public and private investors.
The report reco妹妹ends setting yearly and medium-term solar deployment targets and revisions to the legal framework covering the competitive selection of independent power producers.
Facing a grid capacity shortage, Viet Nam has been licensing a number of solar plants. So far, solar plants with a total capacity of 二 五,000 MW have been licensed, far exceeding the government’s target of 四,000 MW by 二0 二 五. — VNS