On 07 January 2023, the Ministry of Industry and Trade (MOIT) issued Decision No. 21/2023/QD-BCT (Decision 21) on the official power price framework for the transitional renewable energy (RE) projects. Accordingly, EVN and transitional RE investors will negotiate to reach a selling power price which does not exceed the price regulated in Decision 21 (Ceiling Price). This decision is the result of previous calculations on power price submitted by EVN to MOIT. The Ceiling Price is the first rescue signal for transitional RE owners as their projects have been installed for a long time since the FIT price expiration. However, the new power price is far lower than the FIT price stipulated in Decision No. 39/2018/QD-TTg (Decision 39) for wind power and Decision No. 13/2020/QD-TTg (Decision 13) for solar power, hence, not every project will enjoy optimal profitability with this price bracket.
In this legal update, we will highlight several remarkable information for the power project investors about the new power price framework.
Further details of this legal update can be found here.
Hoang Le Hang
Business Development Manager
Tel: +84 24 3971 0888
Email: hang.hoang@lexcommvn.com
