The Government Inspectorate will conduct a comprehensive inspection of power projects and projects developed in the past 10 years (2011-2021). These are projects included under the national electricity development planning phase in the period 2011-2020, with a view to 2030 (power planning VII) and the adjusted electricity planning VII.
The inspection will take place in 85 working days, focusing on the observance of policies and laws in the management, implementation of planning and construction investment of these power projects and works. When necessary, the relevant contents can be inspected before or after the inspection period.
In addition to members of the Government Inspectorate, the Decision for inspection clearly states that the Minister of Industry and Trade, the Chairman of the Members’ Council, the General Directors of: Electricity Vietnam, Vietnam Oil and Gas, Coal – Mineral Industry Vietnam; Chairmen of People’s Committees of provinces, relevant agencies, units, organizations, and individuals are responsible for the implementation of this Decision.
Attached to this decision is a list of 6 provinces with the most solar and wind power projects: Ninh Thuan, Binh Thuan, Dak Lak, Dak Nong, Binh Phuoc, and Bac Lieu provinces.
Following this Decision, the Ministry of Industry and Trade sent instructions to the People’s Committees of various provinces and cities on reviewing the list of wind power, solar power and hydropower projects already included in the national planning.
Recently, the explosion of solar and wind power projects has added a large amount of renewable electricity to the national planning, far exceeding the capacity under the Power Plan 7 and the revised Power 7 by dozens of years. In addition, solar power and wind power have been rapidly added to the planning, causing some provinces such as Ninh Thuan, Binh Thuan… to overload the power grid, causing many projects to produce electricity that cannot be sold or reduce power generation amount.
Result from the investigation will be considered in the finalization of the Power Development Plan VIII. Although there have been about 20 meetings between the Deputy Prime Minister and the Ministry of Industry and Trade in 2021 to review, adjust and supplement, but so far there is no final draft of Power Planning Project VIII.
It is proposed that projects deemed as failing the investigation may face a hefty fine and/or a possible removal from the national electricity planning. To avoid any unwanted consequences, Duane Morris will assist you from the beginning by keeping you in the loop of every single regulatory news and carry out comprehensive due diligence on projects of your interest. Do not purchase or get involved in any projects without prior legal consultation.
Please do not hesitate to contact Dr. Oliver Massmann under omassmann@duanemorris.com if you have any questions or want to know more details on the above. Dr. Oliver Massmann is the General Director of Duane Morris Vietnam LLC.