Wealthy foreign investors in energy are expanding their long-term strategies in Vietnam while many ongoing projects that missed the feed-in tariff deadline are struggling to find a revenue balance.

In 2017-2021, Vietnam saw a boom in solar and wind power development. After 2021, development, however,  slowed down as the pricing policy remained unclear.

Four Japanese banks are set to co-finance a total of US$300 million to provide credit lines to power producers using renewable energy in the nation as part of efforts to help the growing country in its decarbonising process.

Dr Le Hai Hung says renewable power plants occupy much land, but environmental concerns remain controversial, and in the next 10 years, it will not be a reliable energy source for business production and people’s daily life.

The Ministry of Industry and Trade has requested the Vietnam Electricity Group (EVN) to complete pricing talks on solar and wind power with investors before March 31 to put 85 power plants into operation.

The Ministry of Industry and Trade has urged the Electricity of Vietnam (EVN) and investors of transitional solar and wind plants to negotiate and agree to fix electricity prices before March 31.

“You would feel tormented if you saw a vast field of wind turbines, each of which is worth VND150 billion, standing still for the last year,” a renewable-energy investor said.

Investors of numerous renewable energy projects demanded solutions to resolve pricing issues in a meeting with Vietnam Electricity (EVN) on Monday.

Investors have repeatedly complained that prices for clean power are too low, but the Ministry of Industry and Trade (MOIT) has said the prices for wind and solar power were set after suggestions by an independent consultancy council.

Thirty-six wind and solar power investors have sent a document to the Prime Minister requesting to fix problems in the pricing mechanism for transitional wind and solar power projects.

Renewable energy investors have just submitted a recommendation to the Prime Minister regarding the rectification of shortcomings in the process of building and promulgating a price mechanism for power generation for transitional power plants.

Solar energy has recently been considered one of the breakthrough industries that can bring impressive profits to businesses.

The loans made to project developers entail regular interest payments and normally come due after three years, putting many no-revenue solar and wind...

Prime Minister Pham Minh Chinh recently chaired a conference on domestic consumption and exports in 2023.

The Electricity of Vietnam (EVN) recorded a big loss of VND29 trillion in 2022. The figure may even double this year.

At present, while choosing investors for electricity projects, except for BOT projects, the electricity selling price is still not being considered. Only after being chosen will investors begin negotiating for a power purchase agreement (PPA).

Negotiations about wind and solar power prices must observe the principles of publicity, transparency and consensus with investors.

The power sector is in a difficult period because of the global fuel crisis. Higher production costs and higher cost prices compared to selling prices all have put the sector at risk.

Wind and solar power will account for an increasing proportion of Vietnam’s total electricity capacity.

Vietnam Electricity (EVN) proposed the Ministry of Industry and Trade reduce the purchase price of wind and solar power by 30 percent compared to the current one.