Electricity Power Trading Company (EPTC) asked affected developers to negotiate the maximum possible reduction in power prices for periods when their projects had issues related to acceptance inspections, according to a recent notice.

The negotiated prices should not exceed the ceiling tariffs set for transitional renewable energy projects, EPTC said.

Under the Industry and Trade Ministry's Decision 21/2023, the ceiling prices, excluding value-added tax, range from VND1,184.9 (4.55 U.S. cents) to VND1,508.27 (5.8 U.S. cents) per kilowatt-hour for solar power projects and from VND1,587.12 (6.1 U.S. cents) to VND1,815.95 ($6.98 U.S. cents) for wind projects, depending on the project type.

The actual tariff for each plant will be determined through negotiations between EVN and the developer.

EPTC has asked affected developers to submit their proposed tariffs and supporting documents and arrange negotiation schedules with the company.

Dispute involves 172 renewable power projects

The request follows a 2023 State Audit conclusion, regulations governing solar and wind power development, and a 2024 government resolution aimed at addressing problems with renewable energy projects.

According to the Industry and Trade Ministry, 172 grid-connected wind and solar power plants, or parts of plants, had entered commercial operation without written approval for acceptance inspections at the time of commercial operation or during periods when they were eligible for feed-in tariffs.

A 2023 government inspection concluded that the issue had caused losses for EVN. Several projects were subsequently delayed in receiving payments or received only partial payments under their power purchase agreements.

The ministry later proposed that EVN and developers review the projects' eligibility for feed-in tariffs. For projects that did not fully meet the requirements, the ministry proposed determining revised tariffs and seeking approval from relevant authorities to offset the resulting difference in power payments. The approach was intended to limit disputes while reducing the impact on Vietnam's investment environment.

Developers, however, have challenged the basis for changing the recognized commercial operation dates and tariffs.

They argue that regulations in force when some of the projects began commercial operations did not require written acceptance approval as a condition for achieving commercial operation.

The developers said Circular 10/2023 introduced the requirement for acceptance documentation before an electricity operating licence could be issued. Many of the affected plants had already entered commercial operation in 2021 or earlier.

The developers have therefore called for their recognized commercial operation dates to remain unchanged. They also want the rules applied without retroactive effect and electricity payments made in full under their existing power purchase agreements.

They argue that any breach of construction acceptance rules should be dealt with through penalties and corrective measures. Such breaches should not alter a project's commercial operation status or its contractual right to receive payment for electricity generated.