There is not much time left to enjoy the preferential price for wind power, while the procedure for COD recognition is not easy.
According to Decision 39, the preferential FIT price for wind power at sea is 9.8 cents per kWh (equivalent to more than 2,200 VND) and onshore is 8.5 cents per kWh (about 1,927 VND). This price does not include VAT, is applied to a part or the whole factory with commercial operation date before November 1, 2021 and applies for 20 years from the date of commercial operation.
This whole month, the Chairman of the Board of Directors of a large corporation investing in wind power projects in Quang Tri has been regularly present at the construction site of the project, urging the construction contractor day and night to bring the project into operation in time. (COD) before October 31, 2021.
The project’s wind turbines are being technically fine-tuned by foreign experts to prepare for 72-hour reliable running. From October 15, the project will start testing and it is expected that on October 18, the first parameters will be transferred to the power trading company. Near the final steps for acceptance, but according to him, testing is not easy. “Many horrible procedures,” he said.
This person said, experimenting with wind power projects is not like solar power, only wind can do it. There is an experiment that requires the factory to generate maximum active power (minimum 70% of rated capacity), so when the wind is weak, it will not be possible. “We work very hard, but testing depends on weather conditions,” he said.
The procedure to get COD recognition is not simple. At the beginning of October, the Department of Electricity and Renewable Energy (Ministry of Industry and Trade) issued a dispatch to investors noting about conditions with wind power poles. One of the grounds for approving the completion of the work item is “the written approval of acceptance for fire prevention and fighting”.
This is one of the bases for the unit in the electricity sector under the Ministry of Industry and Trade or the People’s Committee of the province to consider and approve the acceptance test results and put the wind power project into use before November 1.
This document is just one of a series of procedures that wind power investors must complete in order to put the project into operation and enjoy the preferential price of 8.5 cents (equivalent to more than 2,200 VND) per kWh, according to Decision 39. 2018.
“Now it is not until there is a written approval to put the work into use that we can rest assured because from now on, we do not know how it will be,” said the investor of the wind power project in Quang Tri.
This investor suggested that parts of the power trading company and the Department of Industry and Trade should create conditions for investors so that COD can even work overtime and night shifts to support investors. keep up with COD. In the COD recognition process, if the investor has any shortcomings, they should guide immediately, to avoid the unit being eligible and still missing the commercial operation date.
According to updated data of the Electricity of Vietnam (EVN), there are 106 wind power plants that have submitted applications for registration of the program of energizing and connecting to the grid, testing, and applying for COD recognition. The total registered COD test capacity of these 106 wind power plants is 5655.5 MW. However, by the end of September, there were 6 wind power plants with a total capacity of 272.4 MW that had been COD recognized.
In addition to the procedure, the difficulties caused by the epidemic also make many wind power projects at risk of not being able to operate commercially in time to enjoy preferential prices.
The leader of a wind power project in Phu Yen said that the epidemic caused his project to be delayed by about 2 months. Foreign experts are unable to come, transport turbines or transfer equipment from ports to difficulties due to tight blockades in localities, interruption of immigration activities of foreign experts, lack of construction workers, etc. ..
As an investment partner in a series of wind power projects in Gia Lai, Phu Yen, Ha Tinh… with a total capacity of 370 MW, Mr. Hoang Ngoc Quy, CEO of HBRE Group, said the fourth outbreak had caused out a lot of trouble.
For example, at the Chu Prong project (Gia Lai) which is under construction day and night with 3 consecutive shifts in the past time, two thirds of the turbine installation volume and time to complete the construction and procedures have been completed. Acceptance testing as well as COD recognition is not much.
“The wind power investment capital is mainly from bank loans, the wind power industry in the current situation also wishes to receive the State’s support policies similar to those for other industries and fields in the future. over,” said Mr. Quy.
The most practical support for businesses at this time, according to Mr. Quy, is the desire The Government considers extending the FIT pricing mechanism under Decision 39 with onshore wind power by December 2022 and offshore wind power by December 2025 to create conditions for power investors to bring projects to completion of investment and construction procedures, complete construction and energizing on time. progress. This is also to avoid the risk of breaking the approved financial plan if it is extended support from the Government.
As for offshore wind power, due to the complicated nature of procedures related to many ministries and branches, it takes 3-4 years for investment and construction. Therefore, the CEO of HBRE acknowledged that the extension of the application of the FIT pricing mechanism for offshore wind power projects is very necessary, which will create motivation for investors to invest and build. The first offshore wind power project in Vietnam.
In the proposal to delay the application of FIT prices for wind power projects, Dr. Mai Duy Thien, Vietnam Clean Energy Association also expressed concern that the commercial operation acceptance also has many potential obstacles. Because a series of projects together carry out this work in September and October 2021; while localities have very strict regulations on isolating people from other places. Therefore, it will be difficult for EVN to arrange sufficient force to complete this work.
At this time, businesses still expect the Government and the Ministry of Industry and Trade to consider delaying the application of FIT prices for wind power projects that have signed a power purchase agreement (PPA) and have a contract to purchase equipment. Because the Covid-19 epidemic made investors miserable.
From the perspective of an international consulting organization, share with VnExpressVu Chi Mai – Head of the Renewable Energy Component of GIZ also acknowledged that Covid-19 is an objective factor that the preferential price mechanism under Decision 39 has not taken into account, affecting wind power projects (above). shore, near shore, offshore…).
Therefore, the German and Danish sides also suggested to the projects that have prepared and have taken certain steps in the investment process, but due to obstacles in the turbine transportation process, foreign technical experts do not due to Covid-19… then a certain time shift is required after October 31, 2021. The “transition” time can be 3-6 months. As for the price in the transition period, Mai said, it should be calculated on the basis of the impact of Covid-19 that affects the project, the economic problem of the project.
Mr. Ha Dang Son, deputy director of the Vietnam Low Emission Energy Program, said that it is necessary to clearly review which projects and the extent of the impact due to Covid-19 should be considered for extension but not extended. massive term, common to all. There are projects with only names, but so far nothing has been implemented, so they should not be considered.
“The Ministry of Industry and Trade needs to review 106 projects that have registered for COD acceptance, how many have contracts, have transferred money to buy turbines… to assess the true impact of Covid-19,” he said. with VnExpress.
From the perspective of mobilizing investment capital of private investors, Mr. Mai Duy Thien emphasized that delaying the FIT price deadline for investors should also be considered, in order to socialize investment capital, so that businesses State-owned enterprises do not have to arrange capital for the development of power sources. Because to mobilize capital from state-owned enterprises for the investment of thousands of MW of wind power is a very difficult problem.
However, Mr. Ha Dang Son acknowledged, the conversion mechanism must be carefully calculated because how much the price offered is also a very difficult problem. “Any price is difficult, because the financial pressure is huge on EVN when it has to compensate for the price, while this is an unstable source, they have to mobilize expensive sources to make up for the renewable electricity part,” he noted.