Government approves temporary buying price for renewable projects

The projects have a combined capacity of 1,347 megawatts, and they will sell electricity to the government at VND753-908 ($0.032-0.039) per kilowatt-hour before VAT.

Another 48 projects have yet to come to an agreement with the government on what the price is.

These projects missed an operation deadline of December 31, 2020 for solar power projects, and November 1, 2023 for wind power projects, and therefore were not eligible for an incentive price that the government had announced to encourage investment in renewable energy.

The temporary buying price is believed to help renewable energy developers to partly recoup their investment after a long time waiting for a decision from the government on the buying price.

The price will only be temporary until the industry ministry determines an official rate.

A developer of four wind power projects in the central highlands said that investors have poured nearly $300 million to complete the projects but have so far received zero revenue from them, while they still have to pay high monthly interest to banks.