Recently, the Ministry of Industry and Trade has just sent a document to the Ministries for comments on the draft Report to the Prime Minister on a plan to deal with difficulties in wind power projects investment, in which the proposal to extend the time Applying the fixed price mechanism (FIT) for wind power projects until the end of 2023.
The Ministry of Industry and Trade proposes to extend the FIT price of wind power until the end of 2023 (Artwork)
In the draft report to the Prime Minister, the Ministry of Industry and Trade stated that, in recent years, the Ministry has received reports from the People's Committees of 10 provinces, the World Wind Power Association, the European Chamber of Commerce ... Industry and Trade reports to the Prime Minister to consider extending the time limit for the application of the fixed wind power price mechanism in Decision 39/2018 / QD-TTg dated September 10, 2018 for projects in commercial operation until 2022- 2023 (1-2 year extension)
The reasons are specified as follows: After the effective date of Decision 39/2018 / QD-TTg (November 1, 2018), the investment registration and additional planning activities for power projects New wind and transmission projects to receive and release capacity were delayed for more than a year due to the lack of implementation guidelines.Many projects were added to planning in December 2019 with a capacity of 7,000 MW (Resolution 110 of the Government dated December 2, 2019) takes about 2-3 years to implement while the remaining effective period of the fixed electricity price mechanism as prescribed in Decision 39 is not enough for housing. invest in activities, prepare and execute the construction of wind power projects.
In addition, the wind power projects in the development planning in the southwestern region are mostly projects on the sea, near shore. Projects at sea using technologies and other technical solutions and construction due to the turbines installed on the shore. Therefore, the time required for project preparation and construction is longer (about 2 years on the shore, about 3-3.5 years on the beach).
At the same time, the regulations on determining the marine area, issuing a license to use the marine area are quite complicated, there are currently no regulations on determining the area of the sea area to calculate the use of the sea area ... leading to prolonging time and increasing costs for projects at sea.
In addition, due to the worldwide epidemic COVID-19 has been affecting the supply of wind power equipment, affecting the construction progress of projects.
On the basis of the proposal and the actual situation, the Ministry of Industry and Trade said that it is appropriate to extend the time of applying the FIT price mechanism for wind power projects in Decision 39, ensuring timely development of wind power to supply electricity for the system. In addition, there will be an impact on the cost of mobilizing electricity for the whole system such as reducing the production cost of Vietnam Power Group from 103 to 1.35 million USD / year in the period 2020-2030; develop the foreign investment, service and equipment market as well as partially replace electricity sources using fossil fuels and fulfill the commitment to environmental protection.
According to the proposal, the wind power purchase price for the FIT price mechanism (applied from November 1, 2021) for the project put into operation from November 2021 to December 2022 will be priced at 7.02 UScent / kWh (on-shore project); 8.47 UScent (sea project); For projects put into operation in 2023, the prices are respectively 6.81 UScent and 8.21 UScent respectively.
For projects authorized by the competent authority to extend the investment schedule and have a commercial operation date after 2023, a cumulative rate of discount of 2.5% is expected to apply every quarter, as of February 2024.
Therefore, the Ministry of Industry and Trade reports to the Prime Minister for approval of the policy of extending the time of applying the fixed electricity price mechanism to wind power projects in Decision 39 until the end of 2023. At the same time, the Ministry of Industry and Trade is assigned. coordinating with the ministries and branches in calculating the electricity purchase and selling prices applicable from November 2021 to the end of December 2023 for wind power projects and implementing procedures for amending and supplementing these contents in Decision 39 according to current regulations, submit to the Prime Minister for consideration and approval.
For comments on the draft, the Ministry of Industry and Trade proposed ministries and branches to complete before October 30 for the Ministry to synthesize and report to the Prime Minister.