Why does the Ministry of Industry and Trade propose to extend wind power FIT prices until the end of 2023?
[responsivevoice_button rate=”1″ pitch=”1.2″ volume=”0.8″ voice=”Vietnamese Male” buttontext=”Play”]
Recently, the Ministry of Industry and Trade sent a document to ministries and branches to get comments on the draft Report to the Prime Minister on plans to resolve difficulties in investing in wind power projects, which proposed extending the time limit. Point of application of the fixed electricity price (FIT) mechanism for wind power projects until the end of 2023.
In the draft report to the Prime Minister, the Ministry of Industry and Trade stated that in recent times, the Ministry has received reports from the People's Committees of 10 provinces, the World Wind Power Association, the European Chamber of Commerce... requesting the Ministry of Industry and Trade. Report to the Prime Minister to consider extending the deadline for applying the fixed wind power price mechanism in Decision 39/2018/QD-TTg dated September 10, 9 for projects entering commercial operation until 2018-2022 ( extended 2023 - 1 years)
See more: Fund a project to bring clean energy and grid services to the building
The reasons are specifically pointed out such as: after Decision 39/2018/QD-TTg took effect (November 1, 11), investment registration activities and planning supplements for power projects New wind and transmission projects to receive and release capacity have been stalled for more than a year due to lack of implementation instructions. Many projects were supplemented to planning in December 2018 with a capacity of 1 MW (Resolution 12 of the Government dated December 2019, 7.000) requiring implementation time of about 110-2 years while the validity period is still remaining. The fixed electricity price mechanism as prescribed in Decision 12 is not enough for investors to carry out activities, prepare and implement wind power project construction.
In addition, wind power projects in development planning in the Southwestern provinces are mostly offshore and near-shore projects. Projects at sea use different technology and technical and construction solutions than turbines installed on shore. Therefore, the project preparation and construction time requirements are longer (onshore about 2 years, on the sea near shore about 3 - 3,5 years).
At the same time, the regulations on determining marine areas and granting licenses to use marine areas are quite complicated. There are currently no regulations on determining the area of marine areas to calculate fees for using marine areas... leading to delays. time and increased costs for offshore projects.
In addition, the prolonged global COVID-19 epidemic has been affecting the supply of wind power equipment, affecting the construction progress of projects.
Based on the proposal and the actual situation, the Ministry of Industry and Trade believes that extending the time to apply the FIT price mechanism for wind power projects in Decision 39 is appropriate, ensuring timely mobilization. Actively develop wind power sources to supply electricity to the system. Besides, it will have an impact on the cost of power mobilization across the system such as reducing the production cost of Vietnam Electricity Group from 103 - 1.35 million USD/year in the period 2020 - 2030; Developing the market for equipment, services and foreign investment capital as well as partially replacing power sources using fossil fuels and implementing commitments on environmental protection.
According to the proposal, the wind power purchase price for the FIT price mechanism (applied from November 1, 11) for projects put into operation from November 2021 to December 11 will cost 2021 UScent/year. kWh (onshore project); 12 UScent (sea project); For projects put into operation in 2022, the prices corresponding to these types are 7,02 UScents and 8,47 UScents respectively.
For projects that are allowed by competent authorities to extend investment schedules and have commercial operation dates after 2023, it is expected that a cumulative discount rate of 2,5% will be applied after each quarter. from February 2.
Therefore, the Ministry of Industry and Trade reported to the Prime Minister to agree on the policy of extending the time to apply the fixed electricity price mechanism for wind power projects in Decision 39 until the end of 2023. At the same time, the Ministry of Industry and Trade was assigned to take the lead. Maintain coordination with ministries and branches to calculate electricity purchase prices applicable from November 11 to the end of December 2021 for wind power projects and carry out procedures for amending and supplementing these contents in Decision 12 according to current regulations, submit to the Prime Minister for consideration and approval.
Regarding comments on the draft, the Ministry of Industry and Trade requested ministries and branches to complete it before October 30 so that the Ministry can synthesize and report to the Prime Minister.
According to congthuong.vn