Clean energy must be protected by transparent, stable, and consistent policies

DNHN - In Vietnam, renewable energy is not only a solution to ensure energy security and reduce greenhouse gas emissions but also a key driver of a green, clean, and sustainable economy.

Between 2018 and 2020, Vietnam rose to lead the ASEAN region in solar power capacity, with over 16.5 GW put into operation. Wind power also reached nearly 4.3 GW by the end of 2023. However, since 2021, this growth momentum has stalled due to changes in policy mechanisms. Numerous projects that achieved commercial operation (COD) on schedule were denied preferential FIT rates due to the lack of a CCA – a requirement that had not been clearly stipulated during the implementation of incentive policies.

The retroactive application of regulations issued after the fact to invalidate investors’ legitimate benefits is difficult to accept, especially considering the context of 2019–2021, when the COVID-19 pandemic severely impacted operations. Lockdowns, labor shortages, and disrupted supply chains delayed inspection and acceptance processes, while regulatory agencies had yet to provide clear procedural guidance. Despite these challenges, many plants managed to complete and commence commercial operations on time – a commendable achievement.

With output curtailed by 20–30%, revenues have plummeted; cash flow has been severely constrained; many companies have been unable to service debt on schedule; and liquidity has been lost due to delayed electricity payments. Without timely solutions, not only will tens of billions of dollars in investment be trapped, but the country’s energy transition goals will also face serious setbacks.

Policies must not be retroactive in sectors that require large capital investment and long payback periods. EVN cannot shift the legal burden onto businesses, and above all, clean energy – a strategic industry of the future – must not be turned into a “victim.”

Clean energy is not an experimental venture. It is a global imperative that deserves the protection of a transparent, stable, and consistent policy environment.

Nhu Khanh - H. Duy