The Ministry of Industry and Trade (MOIT) of Vietnam has just completed the latest draft pertaining to the Price Framework for solar and wind power plants. According to the draft, the country will promote solar projects and increase selling prices to the Electricity Vietnam (EVN) in the northern region, as the solar radiation intensity in this region is lower than in the central and southern regions.
Due to lower projected energy production, pricing mechanisms will need to be higher in the north than in the central and southern regions to attract more investment. This adjustment to the electricity price framework is intended to comply with the provisions of the National Electricity Law and uses relevant data for electricity calculations from consulting agencies.
If necessary, especially when many projects want to negociate price with EVN, the MOIT will set up an advisory committee to evaluate the calculations of the price framework submitted by the group.
Vietnam's Power Development Plan VIII (PDP8) prioritizes the development of solar energy in the north and highlights the country's huge solar energy potential, estimated at 963,000 MW, with 87% primarily coming from ground-based solar energy.
It is estimated that Vietnam's solar power generation capacity will increase by 4,100 MW before 2030 and is projected to range from 168,600 to 189,300 MW by 2050.
As for wind power generation, the plan sets a goal of onshore wind power production reaching 21,880 MW and offshore wind power production reaching 6,000 MW by 2030. By 2050, this generation capacity is expected to be between 70,000 and 91,500 MW.
In addition, this notice stipulates that the new pricing framework will not apply to existing transitional solar and wind power projects, but only to renewable energy projects that are newly constructed, commissioned and have signed a power purchase agreement.