Renewable energy and the institutional challenge: In need of a harmonious solution

DNHN - In the context of global energy transition becoming an irreversible trend, Vietnam has made remarkable strides in attracting investment in solar and wind power.

However, many renewable energy projects have fallen into a state of "limbo" due to administrative bottlenecks—particularly, the lack of a Commissioning Acceptance Certificate (CCA). According to a recent warning from the Ministry of Industry and Trade (MOIT), the risk of widespread and prolonged international disputes in the renewable energy sector cannot be taken lightly.

This warning is not without merit. As of now, up to 173 clean energy projects are still awaiting the green light for commercial operation, mainly because they lack a CCA—a procedure that was not required at the time these projects went online between 2019 and 2021. Circular 10/2023, issued by MOIT in June 2023, was the first regulation to mandate the CCA as a prerequisite for obtaining an electricity operation license. However, applying this new rule retroactively has put many investors in a difficult position, even though they had complied with all the legal procedures valid at the time of their implementation.

Numerous petitions have been submitted to authorities by renewable energy associations, businesses, and investors. The shared sentiment is clear: the current obstacles did not stem from the mistakes of the enterprises themselves but rather from a mix of external institutional factors.

Even Conclusion No. 1027 by the Government Inspectorate acknowledges that the responsibility lies with all three parties involved—the project developers, Vietnam Electricity (EVN), and the Electricity Trading Company. What is needed now is collaboration, not avoidance.

With dozens of projects still stalled due to the lack of a CCA, many businesses report facing retroactive changes to Feed-in Tariffs (FIT), delayed payments, and arbitrary curtailments of output. These issues have frozen capital, disrupted credit flows, and steadily eroded market confidence. Statistics show that among approximately 15,000 MW of connected renewable capacity, the remaining outstanding loans exceed $10 billion. This figure represents more than just financial strain—it is a warning sign that the entire investment ecosystem is at risk of fragmentation if institutional barriers are not urgently resolved.

Vietnam has committed to reaching net-zero emissions by 2050. To realize this pledge, the development of renewable energy must go beyond macro-level strategies and be translated into decisive, coordinated, and responsible actions at the implementation level.

The resolution of CCA-related project backlogs requires a flexible and pragmatic approach, not a rigid retroactive application of new rules. Regulatory bodies—especially EVN, as the intermediary electricity buyer—must urgently propose reasonable solutions.

Now is the time to reevaluate the role of institutions in safeguarding the legitimate interests of investors, while also preserving Vietnam’s reputation as a country making bold strides on the path toward clean energy transformation.

Văn Tâm - Nhật Quang