20230505 Retail electric price raise, PDP8 long stories and PD7 legacy..
Retail Electric price raise
27 Apr 2023: MOIT agreed to EVN to increase electric price up to 3%. The news appeared on mainstream media but then immediately removed.
04 May 2023: EVN decided to increase 3%. News reappeared on mainstream media.
The pressure to increase electricity prices appeared when the Electricity of Vietnam (EVN) faced financial difficulties from 2022.
The "big man" of the electricity industry recorded a record loss of nearly 36,300 billion VND in 2022 from power generation, if other financial income is subtracted, the loss is reduced to 26,236 billion dong.
The last adjustment of the average retail price of electricity took place in March 2019, more than 4 years from the present time.
And EVN Chairman (Mr. Duong Quang Thanh) retired 01 May 2023.
PDP8, long stories..
May the 4th, in the morning, at the headquarters of the Ministry of Industry and Trade, Deputy Minister Dang Hoang An chaired an international consultation conference PDP8 . The conference was organized with the participation of more than 60 domestic and international delegates.
In the afternoon, Deputy Prime Minister Tran Hong Ha chaired a meeting of the Appraisal Council to appraise the results of reviewing and completing PDP8. This is the first meeting of the new appraisal council (please refer to my old substack later Apr).
Deputy Prime Minister proposed updating the contents of JETP to PDP8. This content will be included in the PDP8 in the spirit that when there is appropriate technology, management method, cost, etc., it will convert fossil energy projects to renewable energy, meeting the needs of the people, the economy and exports.
The MOIT are requested to conducts IN-DEPTH research and supplements issues related to fair energy transition combined with reducing net greenhouse gas emissions to zero, such as: carbon capture, afforestation, green financial sources (carbon credits, green bonds), production, storage, use of green hydrogen, green ammonia; new generation nuclear power technology…
PDP7, legacy
Why it’s always Friday..
The Government Inspectorate has just concluded the inspection of the implementation of the planning, implementation of PDP7 and its adjustment. In the conclusion, many contents related to the approval and implementation of planning for power generation projects, power grids, etc., were found to be in violation.
In which, the most typical is the addition and consultation of the Ministry of Industry and Trade to advise the Government to approve the planning of 154 solar power projects with a total capacity of 13,837 MW, which the inspection agency said "has no legal basis".
According to the inspection agency, this is the main cause of the imbalance of power sources and grids, the imbalance of power source structure and regions, making it difficult for the management and operation of the power system, and wasting resources, showing the neglent management, showing signs of irresponsibility causing serious consequences specified in article 360 of the 2015 Penal Code.
In addition, the Government Inspectorate proposed to transfer information and documents to the Ministry of Public Security for consideration for the Ministry of Industry and Trade in issuing guidance and advice on promulgating a mechanism to encourage the development of rooftop solar power, which had many shortcomings, violations, leading to many systems of rapid investment with large capacity on agricultural land, violating planning, but enjoying preferential mechanisms.
The inspection conclusion also suggested that the Prime Minister direct the Ministry of Industry and Trade to review and handle the responsibilities of relevant organizations and individuals for the above violations and shortcomings on advising and promulgating conditions for grid-connected solar power projects to apply the FIT price of 7.09 cents/kWh.
At the same time, the inspection results will be transferred to the Central Inspection Committee (under CPV) for consideration and handling according to its competence to officials under the Politburo and the Secretariat's management related to above shortcomings and violations..