Consequences when solar power is developed

VCN- In recent months, many solar power investors have started projects to launchbefore June 30, enjoying preferential electricity prices. This has pushed the power industry as well as investors into difficulty.
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Rushing investment in solar power can cause unintended consequences. Photo: Duc Phong.

Transmission cannot keep up with projects

According to the National Electricity Regulatory Center, of renewable energy power projects in 2018, three power plants were connected successfully. There are five more factories in the first three months of 2019. However, from April to June, there were 81 successful power plants in the electricity system. By the end of June 2019, there were 89 power plants nationwide (including 87 solar power plants and two wind power plants). The installed capacity of wind and solar power plants are over 4,543 MW (accounting for 8.3% of the national electricity grid). In particular, solar power capacity is over 4,463MW. Mr. Nguyen Duc Cuong, Director of the National Electricity Regulatory Centersaidin such ashort time, this number of factories put into operation is unprecedented in the history of Vietnam's electricity industry.

Referring to investment in renewable energy, especially solar power, NinhThuan and Binh Thuan are currently the two most prominent localities.NinhThuanhas 15 factories with a total capacity of more than 1,000MW, while BinhThuanis home to 19 factories with a total capacity of 871MW. The obvious consequences in these 2 localities is the overloading of the grid. Typical figures mentioned are: 110kV Thap Cham - Axial line – Hau Sanh – Tuy Phong - Phan Ri carries load up to 260-360%; 110 kV line Phan Ri - Song Binh - Dai Ninh carries 140% load; 110 kV Da Nhim line - Don Duong carries 123% load.

The National Electricity Regulatory Centersaidthis load level will continue to increase in the near future. If there is no solution by 2020 the situation will be more. The risk of malfunctioning and disintegration (causing power outages for the national electricity system) is very high.

From an insider's perspective, according to the representative of Phuoc Huu Solar Power Plant (NinhThuan) "Just being certified for commercial operation in mid-June, but the sad thing is that every day the factory receives documents from The Southern Power System Moderation Center (A2) to require reduction in capacity, the rate of reduction is usually 30-60% of the capacity; with the current situation, the source of repayment will be very difficult.”

Difficulty needs extricating together

Representing a number of solar power projects in Ninh Thuan and Binh Thuan provinces, raising the viewpoint,in fact, the units have clearly recognized the overloading situation of Vietnam Electricity (EVN). What investors want is to solve this problem as soon as possible to increase the investment efficiency of the project. Investors are willing to join hands with EVN to solve related issues such as difficulties in capital and site clearance.

According to EVN, when the projects simultaneously energized before July 2019 to possibly enjoy preferential electricity price of 9.35 cents / kWh, the grid overload situation took place.

Mr. Tran DinhNhan - EVN General Director said: In order to solve this problem, EVN has directed the National Power Transmission Corporation, Southern Power Corporation to accelerate the progress of power lines and there will be no power plants deflation no longer in 2020. "EVN will remove all capacity for investors by all means," stressed Tran DinhNhan.

Related to the development of renewable energy, typically wind and solar power, Mr. Bui Quoc Hung - Deputy Director of Department of Electricity and Renewable Energy (Ministry of Industry and Trade) added: There has been a report to the Government to supplement the master plan of 7 power plants, building power grid projects in BinhThuan, NinhThuan provinces, 500kV stations, 500kV lines, double circuits and 220kV lines, branches.It is expected that more works will be invested in the end of 2019 and early 2020.

However, Mr. Cuong also emphasized: The process of construction of the lines has faced many difficulties such as investment capital, construction time, compensation and site clearance.So theMinistry of Industry and Trade continued to instruct EVN to urgently implement the progress of the line projects in operation, the Ministry also proposed the Prime Minister to have a mechanism of socialization, calling for private participation in investment in the line of transmission to reduce investment pressure.

Talking to reporters from Customs Newspaper, PhD. Nguyen Manh Hien, former Director of the Institute of Energy stated: "With the development of solar power in the future, in order to avoid falling into a massive investment and the present difficulties.It is necessary to carefully calculate for power plants with the corrected content pointed out, of which the Government and the Ministry of Industry and Trade play a key role and drastically implement the plan.

On April 11, 2017, the Prime Minister issued Decision 11/2017 / QD-TTg on mechanisms to encourage the development of solar power projects in Vietnam. Accordingly, the preferential price for solar power is 9.35 UScents / kWh. The decision takes effect on June 30, 2019

Currently, the Ministry of Industry and Trade is finalizing the Draft Decision of the Prime Minister on the mechanism to encourage the development of solar power in Vietnam, which is a continuation of Decision 11.

According to the latest draft, the solar electricity price after June 30, 2019 can be divided by 2 options, divided into 4 price zones and 2 price zones.

Specifically, according to the plan of dividing into 4 regions developing solar power, the electricity prices will correspond to the type of investment (solar power ground, roof, floating). Accordingly, zone 1 (the least potential area, concentrated in the northern provinces) has the highest price of VND 2,102 / kWh; Area 2: 1,809 VND / kWh; Area 3: 1,620 VND / kWh. Especially, region 4 - the region with the highest potential (Ninh Thuan, BinhThuan) has the lowest price of 1,525 VND / kWh (this price is much lower than the figure of 2,086 VND / kWh that the projects enjoyed before July 2019).

According to the plan of dividing 2 price zones: The highest price of solar roof electricity in Zone 1 is about 1,916 VND / kWh; the lowest is about 1,758 VND / kWh for the solar power project. Similarly, the prices in region 2 (6 provinces with good radiation such as Binh Thuan and Ninh Thuan) are about 1,803 VND / kWh respectively and 6.67 about 1,525 VND / kWh.

By Duc Phong/Bui Diep

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