On 11 August 2022, in the conference between Government and enterprises, the Minister of the Ministry of Industry and Trade (MOIT) Nguyen Hong Dien urged the Prime Minister to promptly approve the PDP8 draft. In addition, Mr. Dien also proposed to terminate all FIT regulations for solar/wind power at Decision 13, Decision 37 and Decision 39 so that EVN could negotiate the market power price of all transitional renewable projects with investors.
DPM Le Van Thanh pointed out several issues of current PDP8 draft as follows: (i) the power sources in regions are poorly allocated and as a result it creates relatively high power transmission costs, (ii) renewable sources ratio is too high (some dozen percentage) while comparing with the averaged ratio of 3% for renewable power sources in the other countries (NB: he also mentioned that the solar power sources have caused the curtailment issues for other sources such as hydropower and thermal power), (iii) MOIT must carefully review and propose the final draft within this week for the Government’s discussion.
Prime Minister Pham Minh Chinh instructed that it is encouraged for renewable power projects to be implemented but the price must be appropriately adjusted. PM Chinh argued that the FIT for renewable power projects is approx. 2 times of price for other sources. He seriously said that the PDP8 must be for the national interest and not for any group’s or self-interest.
The link for the relevant article in Vietnamese is at: https://tuoitre.vn/quy-hoach-dien-8-thu-tuong-yeu-cau-khong-chay-theo-loi-ich-nhom-20220811124321226.htm;
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.