Renewable electricity 'stuck' with inspection, still waiting for resolution

The Government’s issuance of a resolution approving a plan to handle renewable energy projects is expected to help unlock resources. However, according to experts, there needs to be a plan to harmonize benefits and share risks between the State and investors.

Renewable energy enterprises hope that projects "involved" in violations after inspection will be resolved "reasonably", not wasting resources - Photo: Q.DINH

According to some investors of renewable energy projects, in the context of renewable energy sources being encouraged to meet net zero requirements, it is necessary to have measures to remove obstacles for these projects, not to let the projects be "shelved" causing waste.

Hope for a "reasonable" solution

For projects that have been inspected and found to have violations, it is necessary to take measures to correct the violations to create transparency, create an equal business environment, and respect the law. However, how to handle them in accordance with legal regulations and "understand the situation and reason" to effectively mobilize this resource, sharing between the State and investors is a requirement.

Talking to us, Mr. Bui Van Thinh, Chairman of the Binh Thuan Wind and Solar Power Association, said that many projects are stuck in planning and overlapping planning, procedures such as land and construction. These are bottlenecks not only for projects under inspection conclusion, but also for projects about to be implemented. If there is no solution, it will be very difficult to put the project into operation, wasting resources.

According to Mr. Thinh, the reality is that when investing, no one knows where the minerals are, and only when the local authorities give the green light to start work will businesses participate in investing. But when the inspection concludes and concludes, it is determined that the project is in violation, built on mineral planning land, making it very difficult for investors. "Or with projects that are stuck in land procedures, with the current complicated compensation nature, it is very difficult for projects to meet the requirements," said Mr. Thinh.

Representatives of businesses involved in a number of solar power projects said that after the Government Inspectorate issued its inspection conclusions, many project investors have made efforts to improve and correct violations. Especially regulations and legal procedures on land, construction, environment, planning and conversion of land use purposes - the main reasons for the delay in project implementation.

"It is necessary to consider the context of this project implementation in the 2019 - 2021 period, which is the peak period of fighting the COVID-19 pandemic, so investors face many difficulties in collecting and completing documents. Therefore, on the basis of the Government's resolution, the review and handling of difficulties with each project needs to assess and calculate the difficulties of investors to have appropriate solutions," he proposed.

Appropriate handling of FIT price violations

Talking to us, a leader of the Ministry of Industry and Trade said that developing renewable energy is a new solution, without precedent, lacking experience, and the legal system is not yet complete, so there are still some violations during the implementation process. Therefore, the handling principle is that agencies, levels, sectors, and localities must resolve according to their authority. For projects that have been prosecuted, violations will only be handled after the verdict takes effect according to regulations.

According to this person, there are six groups of solutions to remove difficulties and obstacles for renewable energy projects. That is, allowing additional planning for implementation in case the project does not violate regulations related to national security and defense, planning of key national works and projects. For projects with violations of procedures and processes related to land and construction, they are allowed to be completed according to regulations.

Projects that violate planning on minerals, irrigation, national defense, etc. will be evaluated and their overlapping planning will be adjusted accordingly. However, projects that are entitled to FIT prices but violate or do not fully meet the conditions will not be entitled to preferential FIT prices and will have their FIT price revoked. "For solar power projects on agricultural and forestry land, if they do not meet the regulations, their preferential FIT prices will be revoked...", he said.

However, Mr. Bui Van Thinh said that it is necessary to carefully evaluate the handling and recovery plan for FIT-enjoying enterprises that have not fully met the preferential conditions... Because when the projects have signed PPA contracts with EVN and are recognized by EVN for commercial operation date (COD), that is an agreement between the buyer and the seller of electricity and is the legal basis for lawsuits.

"The confirmation of acceptance after COD may be due to slow resolution of land and planning procedures. Therefore, if it is determined to be a violation, it is necessary to clarify the regulations to serve as a basis for handling it in a harmonious and appropriate manner for the interests of all parties," Mr. Thinh said, adding that once forced to apply transitional prices, facing the risk of bankruptcy, investors, especially foreign investors, will sue EVN.

Investors fear bankruptcy if FIT price is revoked

According to some experts in the field of renewable energy, determining which projects will have their FIT prices revoked requires caution, avoiding equating "crime" with "fault", "intentional" with "unintentional" in the spirit of avoiding wasting social resources, avoiding lawsuits that affect the investment environment.

Many businesses also said that they have calculated the price level with financial indicators at each time when implementing the project. Therefore, if the transitional electricity price is cut and paid (which can be reduced by 30-50%), as well as having to pay back the difference in FIT price, investors may have their financial plans disrupted, or even go bankrupt.

Review carefully to handle problems

According to the direction of Prime Minister Pham Minh Chinh at the conference announcing the resolution, the resolution of problems is carried out with the spirit of choosing the optimal solution, minimizing disputes and complaints that affect the investment environment. Criminal handling is the last measure to create conditions to remove obstacles for projects.

The Prime Minister also assigned the Ministry of Industry and Trade to preside over a thorough review of difficulties and problems of renewable energy projects, propose competent authorities to handle each problem; urgently review, research, and propose adjustments to Power Plan 8, implementation plans, and mineral planning...

For investors who actively and proactively remedy all violations and shortcomings pointed out by competent authorities; are responsible for seriously and fully implementing the investment, construction and operation procedures of the project in accordance with the provisions of law... then coordinate with relevant agencies to resolve problems.

Source: https://tuoitre.vn/dien-tai-tao-dinh-thanh-tra-van-cho-thao-go-20241220100726579.htm