The Power Trading Company (EPTC), a subsidiary of Vietnam Electricity (EVN), recently proposed that renewable energy investors renegotiate power purchase prices for periods when plants were commercially operational but lacked formal written approval for acceptance inspection.
EPTC specifically requested "maximum power price reductions" for periods when projects had previous violations related to acceptance inspection (CCA). The proposed rate would "not exceed the transitional power price ceiling".
According to Decision 21/2023 by the Ministry of Industry and Trade, the ceiling price, excluding VAT, is 1,184.9-1,508.27 dong per kWh for solar power and 1,587.12-1,815.95 dong for wind power, depending on the type. The specific price for each plant will be negotiated between the parties.
Investors of projects facing inspection issues are urged to submit their proposals, along with relevant justifications, and schedule negotiations with EPTC promptly.
EPTC's proposal is based on the 2023 inspection conclusions, mechanisms for solar and wind power development, and Government Resolution 233/2024. The Ministry of Industry and Trade reported that 173 grid-connected wind and solar power plants, or parts thereof, commenced commercial operation without formal acceptance inspection documents at their commercial operation date (COD) or during the period of enjoying FIT prices.
The 2023 conclusion by the Government Inspectorate assessed that this situation caused losses for EVN. Subsequently, many projects faced delays or received only partial payments under their contracts.
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A solar power plant operating in Mui Ne, Binh Thuan. Photo: Viet Quoc |
To address this, the Ministry of Industry and Trade suggested that EVN and investors review the conditions for enjoying FIT prices, re-determine prices for projects that do not meet the criteria, and report to competent authorities for basis to offset power purchase payments. This approach aims to limit disputes and mitigate negative impacts on the investment environment.
However, investors argue that when projects achieved commercial operation date (COD), there was no regulation mandating written acceptance inspection. According to investors, Circular 10/2023 only recently added this condition before issuing electricity operation licenses, while their plants have been operational since 2021 or earlier.
Businesses request to retain their recognized COD, avoid retroactive application, and receive full payment for electricity as per their contracts. They contend that construction law violations regarding acceptance inspection should be penalized and rectified but should not alter a project's eligibility for commercial operation.
Phuong Dung
