In their petition to relevant regulatory bodies, renewable energy investors articulated profound concerns over the proposed treatment of 173 wind and solar power projects that achieved Commercial Operation Dates (COD) before or during 2021, yet lacked formal written acceptance of inspection results at the time of COD.
Investors contend that the written acceptance of inspection results, a document validating the completion of construction by the Ministry of Industry and Trade or competent provincial authorities, constitutes a critical contractual element. Despite diligent compliance with prevailing renewable energy regulations, since September 2023, many projects have faced protracted payment delays or received only partial disbursements under existing power purchase agreements with Vietnam Electricity (EVN).
Renewable energy investors argue that the retroactive application of FITs, predicated on the date of issuance of the written inspection result acceptance, is both arbitrary and inconsistent with the principle of non-retroactivity enshrined in the Law on Investment. This policy shift threatens to erode nearly 100 percent of the projects’ equity, amounting to an estimated US$13 billion, leading to a significant risk of corporate insolvency.
Chairman Bui Van Thinh of Binh Thuan Wind and Solar Power Association emphasized that retroactive electricity pricing not only jeopardizes operational projects but also undermines the nation’s capacity to attract substantial investment in the power sector.
A comprehensive reassessment of all relevant factors and regulatory frameworks in effect at the time of investment is imperative to formulate an equitable resolution. Sao Mai Group, an An Giang-based renewable energy investor, underscored the absence of any legal or regulatory provision stipulating that power plants lacking a Completion Acceptance Certificate (CCA) post-COD are ineligible for FIT preferential rates.
Notably, approximately 30 percent of renewable energy projects affected by the proposed FIT rate revisions involve foreign investors from Europe and Asia. The total investment at risk, pertaining solely to foreign-owned projects, is estimated at $4 billion, encompassing over 3.6GWp of solar power projects and 160MW of wind power projects.
Investors’ petition aligns with Vietnam’s efforts to correct irregularities found by the Government Inspectorate in Conclusion No.1027/KL-TTCP. These include improper incentive pricing and FIT recognition without proper construction completion acceptance, affecting 173 solar and wind energy projects, as reported by the Ministry of Industry and Trade.
An energy expert warns about the difficulties in resolving FIT disputes under the above Conclusion. Accountability is crucial, but compliant projects should not have their FIT prices revoked due to potential lawsuit and investment instability. The Ministry of Industry and Trade, EVN, and stakeholders must negotiate a fairer electricity purchase rate.
The Government Office has disseminated a summary of Standing Deputy Prime Minister Nguyen Hoa Binh’s conclusions following a meeting on the implementation of Resolution No. 233/NQ-CP, dated December 10, 2024, which addresses the resolution of obstacles affecting renewable energy projects.
The Deputy Prime Minister mandated strict adherence to Resolution 233, stipulating that projects with violations attributable to corporate wrongdoings and non-compliance with FIT eligibility criteria are ineligible for preferential rates.
The Ministry of Industry and Trade is tasked with monitoring regional and sectoral reporting, compiling comprehensive updates, and providing periodic reports to the Prime Minister until all obstacles to renewable energy projects are resolved. Following the resolution of these issues, the Ministry will submit a consolidated report to the Government by June.
From a legal standpoint, Director Truong Thanh Duc of ANVI Law Firm asserted that all investment incentives must be upheld as initially agreed. In cases of significant corporate misconduct, remedial action may be warranted. However, projects completed ahead of schedule to augment national electricity supply deserve the initially committed incentives. In instances of policy amendments, investors should receive enhanced benefits; conversely, if policies become less favorable, previously agreed-upon incentives must be honored.
