Ministry of Industry and Trade approves Solar Power Project almost 20 times larger than planned

DNHN - The inspection of the management of investment and construction of power projects under Power Plan 7 and its 7 adjustments showed that the addition of many solar power projects, mainly in the Central and Central Highlands regions, is inappropriate.

According to the conclusion, the Ministry of Industry and Trade did not implement the national solar power development plan, and the provinces did not implement the provincial solar power plant until 2020. However, 168 solar power projects have been approved, with a total capacity of 14,707 MW, almost 20 times higher than the original project.

Of these, only 14 projects were approved according to the power plans of four localities before 2016, and eight projects were approved according to the power projects of five provinces. The remaining projects (with a total capacity of 3,194 MW) were approved additionally in 23 localities, of which up to 15 out of 23 provinces did not have a solar power plant. Therefore, the inspection agency assessed that the Ministry of Industry and Trade's decision to approve 92 projects with a total capacity of 3,194 MW had no legal basis. The adjusted Power Plan 7 set out a plan to install 850 MW of solar power by 2020, but the Ministry of Industry and Trade approved up to 54 projects (with a capacity of 10,521 MW), which also did not comply with the legal basis.

In addition, the ministry's approval of additional solar power projects under 50 MW into the provincial power project and its consultation with the Prime Minister to approve projects over 50 MW into the adjusted Power Plan 7 without establishing a plan is also considered to have no legal basis and, at the same time, risks causing unfair competition in attracting investment.

The inspection conclusion also pointed out that the Ministry of Industry and Trade violated the incentive mechanism for solar power projects in Ninh Thuan, resulting in 14 projects enjoying a preferential FIT price of 9.35 cents/kWh for 20 years without complying with regulations. This led to the Vietnam Electricity Group (EVN) having to pay an additional VND1,481 billion to investors within 2.5 years.

The inspection agency also pointed out that EVN had previously recommended not encouraging investment in solar power without synchronisation with investment in the transmission grid, although this suggestion was not fully accepted by the Ministry of Industry and Trade.

For the eight localities that violated the regulations, the Government Inspectorate proposed transferring the cases to the investigation agency for handling.

In Long An, the inspection agency requested the review and handling of responsibilities under legal regulations for related organisations and individuals. Binh Thuan has 13 solar and wind power projects that violate the regulations on national mineral reserve land, and the case has been transferred to the Security Investigation Agency to handle violations in the management and use of land for these projects.

In Binh Phuoc, the Government Inspectorate concluded that there were violations related to the use of forest land to build the Loc Ninh 4 solar power plant, along with some other projects.

For Dak Lak, some projects are not following the land use planning, and the inspectorate proposed transferring the case to the investigation agency for handling.

Binh Phuong