Decision 39 on wind power expired, many businesses fell into a pilling up difficult situation

According to Decision 39 of the Prime Minister, wind power projects recognized for commercial operation before November 1, 2021 will receive preferential prices. However, due to many difficulties in epidemics, site clearance, and equipment transportation, many projects could not reach their destination in time. When Decision 39 expired, many businesses fell into a pilling up difficult situation.

Hanbaram Ninh Thuan wind power plant has completed construction, installation, and connected 29/29 turbine towers, but so far only 6/29 towers have been recognized for commercial operation. The finish line after November 1, 2021, makes the plant not entitled to electricity price incentives under Decision 39/2018 of the Prime Minister, currently the remaining 23 turbines are still standing because there is no transition policy on electricity prices. This is also a common difficulty of many wind power plants.

Mr. BUI VAN THINH, Chairman of the Association of Wind and Solar Energy of Binh Thuan province: “As I said because of Covid or for some other reason, the project has been completed so far but it is late for the specified time, of course, Electricity of Vietnam, they cannot buy electricity, because they do not know what price to buy, currently, all projects are being stopped, such a stop affects a lot of turbines and equipment. Commercially, the project stops, there is no revenue while the debt and interest are still paid, this is a difficulty piled up with difficulties.”

Sharing more with us, the Chairman of the Association of Wind and Solar Power of Binh Thuan province said that wind power cannot avoid heavy losses when more than one third of the projects cannot finish with a total capacity of 2.000 MW, equivalent to an investment capital of over 3 billion USD. These projects are not knowing where to go, how to sell, how to pay debts.

Mr. BUI VAN THINH, Chairman of the Association of Wind and Solar Energy of Binh Thuan province: “Currently, the fixed fit price mechanism is no longer available and the bidding mechanism has not been issued, according to us, it is necessary to have a transition price in the current period, after we expire the fit price and the bidding mechanism has not been issued. The solution and recommendation that we want is that the units responsible for our research still maintain the fit price in the transition period, but reduce 1% each month to encourage projects to be completed as soon as posible to have profit.”

Mr. HOANG TRANG THACH, Chief Commander of Dak N’Drung 1,2,3 Wind Power Project in Dak Nong: “Our business has poured a lot of money and enthusiasm into this wind power project. It is expected that the project is being implemented and the project is completed, the State has a specific electricity price mechanism so that businesses can base on the internal situation of enterprises as well as issues of Vietnamese law for further implementation”.

Under the pressure of bankruptcy, many investors are looking forward to the price transition mechanism, but despite petitioning for many months, there has been no specific guidance. Meanwhile, many wind turbines, even though they have been completed, are in a standing still, covered with mats, causing great waste.

Performed by: Le Trang Nguyen Minh