(DDDN) “There are no specific instructions for auction so that the progress of projects which in the implementation phase is still at a standstill”, COO of BCG Energy shared about Solar power mechanism.

According to Decision No.13/2020/QD-TT, the mechanism to encourage the development of solar power in Vietnam has initially “framed” the mechanism for electricity trading relations between Viet Nam Electricity or authorized members and investors who invested Grid-connected solar power and rooftop solar power.

However, the enterprises are waiting for more specific regulations beyond the initial incentive.

Mr. Pham Minh Tuan – COO of BCG Energy which is a subsidiary of Bamboo Capital Group (BCG) are implementing renewable energy projects, shared that the new electricity purchase price for solar power projects which according to Decision No.13/2020/QD-TTg is appropriate to the current market conditions and current ability of enterprises to deploy new projects.

Mr.Pham Minh Tuan – COO of BCG Energy which is investing in 3 solar plants in Long An province.

– How does this decision affect businesses?

Currently, Decision No.13/2020/QD-TTg has not had specific guidelines for the auction so that the progress of projects which in the implementation phase is still at a standstill.

During this period, businesses in which deploying new solar projects can still ensure the economic efficiency of the project. Therefore, the new electricity price is not too affective on the interest rate.

– Does BCG Energy make any adjustments to adapt to the new regulations?

BCG Energy needs to update financial model following to the new electricity purchase price, adjust the cost price and expenses related to project implementation following to the new market price. After that, recalculating the feasibility of the projects, identify projects with high efficiency to implement.

– Could you please tell us that the impact of COVID-19 and the adjusted electricity purchase price on the activities of renewable energy companies?

Currently, the state of the economy is facing serious crises caused by the impact of COVID-19. In 2019, BCG Energy has successfully put into operation the BCG-CME Long An 1 project with a total capacity of 40 MW and a part of the BCG-CME Long An 2 project with a total capacity of 100 MW. The COVID-19 epidemic does not cause any negative effects on those projects which have been operated and connected, due to the electricity products from the projects are fully acquired by EVN under the purchase contract was signed to sell electricity.

However, projects which are in the process of completing legal procedures, social isolation policies, and the closure of state agencies cause a lot of restrictions for the company in the process of running records. Since waste time for completing legal procedures for the projects.

Source:https://enternews.vn/tgd-bcg-energy-doanh-nghiep-ngong-phuong-an-dau-gia-dien-170971.html