Vietnam retroactively cuts subsidies for some solar, wind farms, investors' letter says
The document, dated May 16 and sent to Vietnam's top authorities, follows a first letter in which most of the same signatories warned of billions of dollars of investment at risk because of retroactive changes to subsidies implemented by Vietnamese authorities even as they target a massive expansion of renewables capacity.
Starting with January invoices, a subsidiary of Vietnam's power utility EVN "unilaterally withheld a portion of its payments by applying a provisional tariff of its own proposal," the document said.
"This has caused us to breach commitments to banks and both local and international lenders, face the risk of default under pressure of monthly debt repayments, and suffer cash shortages," it added.
Among the 16 foreign signatories are private equity fund Dragon Capital, the Vietnamese subsidiary of Philippines' ACEN (ACEN.PS), opens new tab energy group, and investors from Thailand, Portugal, the Netherlands, South Korea, Singapore and China. Dozens of other Vietnamese projects also signed the letter.
In recent years, the Southeast Asian country has experienced a boom in renewable energy investments driven by generous feed-in tariffs (FiTs), under which the state committed to buying electricity for 20 years at above-market prices, effectively subsidising producers.
However, amid allegations of abuses in accessing the FiTs and increasing losses for EVN from the subsidy programme, authorities have proceeded to freeze or cut some subsidies.
EVN had no immediate comment on the second petition but it has told Reuters in recent weeks that preferential prices could not be continued for projects that violated regulations.
It did not specify whether rules were changed retroactively and which projects were in breach of regulations.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
38 minutes ago
- The Independent
China races to build world's largest solar farm to meet emission targets
Chinese officials recently unveiled plans for what they claim will be the world's largest solar farm, spanning an immense 610 square kilometres (235 square miles) – roughly the size of Chicago – on the Tibetan plateau. This ambitious project underscores China 's blistering pace of solar panel installation, significantly outstripping global efforts, with these investments now beginning to yield tangible results. A recent study revealed the country's carbon emissions fell by 1 per cent in the first half of the year compared to the same period last year, continuing a positive trend observed since March 2024. This suggests China 's carbon emissions may have peaked considerably earlier than its government's 2030 target. However, as the world's largest emitter of greenhouse gases, China faces the imperative to reduce these emissions far more drastically to contribute effectively to slowing global climate change. Lauri Myllyvirta, lead analyst at the Centre for Research on Energy and Clean Air and author of the study, highlighted that achieving China's declared goal of carbon neutrality by 2060 would necessitate an average 3 per cent annual reduction in emissions over the next 35 years. "China needs to get to that 3 per cent territory as soon as possible," Mr Myllyvirta stressed. China's emissions have fallen even as it uses more electricity China's emissions have fallen before during economic slowdowns. What's different this time is electricity demand is growing — up 3.7 per cent in the first half of this year — but the increase in power from solar, wind and nuclear has easily outpaced that, according to Myllyvirta, who analyses the most recent data in a study published on the UK-based Carbon Brief website. 'We're talking really for the first time about a structural declining trend in China's emissions,' he said. China installed 212 gigawatts of solar capacity in the first six months of the year, more than America's entire capacity of 178 gigawatts as of the end of 2024, the study said. Electricity from solar has overtaken hydropower in China and is poised to surpass wind this year to become the country's largest source of clean energy. Some 51 gigawatts of wind power was added from January to June. Li Shuo, the director of the China Climate Hub at the Asia Society Policy Institute in Washington, described the plateauing of China's carbon emissions as a turning point in the effort to combat climate change. 'This is a moment of global significance, offering a rare glimmer of hope in an otherwise bleak climate landscape,' he wrote in an email response. It also shows that a country can cut emissions while still growing economically, he said. But Li cautioned that China's heavy reliance on coal remains a serious threat to progress on climate and said the economy needs to shift to less resource-intensive sectors. 'There's still a long road ahead,' he said. One solar farm can power 5 million households A seemingly endless expanse of solar panels stretches toward the horizon on the Tibetan plateau. White two-story buildings rise above them at regular intervals. Sheep graze on the scrubby vegetation that grows under them. Solar panels have been installed on about two-thirds of the land. When completed, it will have more than 7 million panels and be capable of generating enough power for 5 million households. Like many of China's solar and wind farms, it was built in the relatively sparsely populated west. A major challenge is getting electricity to the population centers and factories in China's east. 'The distribution of green energy resources is perfectly misaligned with the current industrial distribution of our country,' Zhang Jinming, the vice governor of Qinghai province, told journalists on a government-organised tour. Part of the solution is building transmission lines traversing the country. One connects Qinghai to Henan province. Two more are planned, including one to Guangdong province in the southeast, almost at the opposite corner of the country. Making full use of the power is hindered by the relatively inflexible way that China's electricity grid is managed, tailored to the steady output of coal plants rather than more variable and less predictable wind and solar, Myllyvirta said. 'This is an issue that the policymakers have recognised and are trying to manage, but it does require big changes to the way coal-fired power plants operate and big changes to the way the transmission network operates,' he said. 'So it's no small task.'
Reuters
39 minutes ago
- Reuters
China's carbon emissions fell in the first half of 2025, study shows
BEIJING, Aug 21 (Reuters) - China's carbon dioxide emissions dropped 1% in the first half of 2025 from the same period last year, helped by growing use of renewable energy to generate power, according to a study by the Helsinki-based Centre for Research on Energy and Clean Air. Emissions from the power sector, the top source of greenhouse gases in China, fell 3% during the six-month period, according to the study by CREA's lead analyst Lauri Myllyvirta for UK-based research organisation Carbon Brief. Myllyvirta attributed the drop to more renewable electricity from China's rapidly growing fleet of solar power plants, which is expected to see another year of record capacity additions in 2025, putting emissions on track for a full-year decline in 2025, the study said. The Ministry of Ecology and Environment did not immediately respond to a request for comment outside normal business hours. China, the world's biggest CO2 emitter, last reported an annual decline in carbon emissions in 2022, related to the COVID pandemic, and has targets for emissions to peak by 2030 and to reach net-zero emissions by 2060. Coal use in the power sector fell 3% during January-June, although gas burned for electricity rose 6%. Emissions also ticked down in building materials, metals, cement and steel because of China's weak property sector. However, unlike all other major sectors, carbon emissions from China's chemicals industry are still rising, the study said. The use of coal as an input for synthetic fuels and petrochemical products grew 20% in the first half of the year. The growth in coal-to-chemicals has added 3% to China's carbon emissions since 2020 and could add another 2% by 2029, the analysis found.
BBC News
3 hours ago
- BBC News
Philippines: Fast-food giant Jollibee blames fraudsters for raffle row
The Philippines' beloved fast-food chain Jollibee said fraudsters rigged the results of its online raffle, following complaints from customers and a brief government said "fraudulent third parties" placed multiple entries "despite existing safeguards" for a chance to win burgers and concert company said it complied with the government investigation and that the situation had been social media users were in disbelief when the winners' names were posted on Jollibee's Facebook page last week. They said names like Hobby Dynamics, Noble Beer and Alfreda Corkery could have been made up using AI. Jollibee said it "immediately implemented corrective measures" and disqualified the "invalid major prize winners". It also suspended succeeding draws and said a re-draw would be held."We want to assure everyone that we have fully addressed the issues raised and strictly complied with the investigation initiated by the Department of Trade and Industry," Jollibee said in a statement late on names on the winners' list baffled social media users as they are uncommon in the country. Filipino first and last names are a mix of English and Spanish inherited from its former colonisers from America and names also include Belle Thompson, Arielle Wintheiser and Gilda Block."LIKE SERIOUSLLLLLY?!?!" one Facebook user commented. "Your AI must be too lazy to come up with these kinds of names"."They probably thought people didn't have time to read," another wrote. Some drew comparisons to a corruption controversy involving Vice-President Sara Duterte, whose office allegedly paid government funds to individuals with fictitious-sounding Department of Trade and Industry said on Wednesday that it would "continue to oversee the resumption of the Jollibee Burger Blowout Promo", ensuring "fairness and transparency in all promotional undertakings".Jollibee started as an ice cream shop in the 1970s before opening its first burger restaurant in downtown Manila in the early 1980s. It has expanded its business rapidly in the last five years, acquiring US cafe chain The Coffee Bean and Tea Leaf and Michelin-starred Hong Kong dimsum chain Tim Ho founder, Tony Tan Caktiong, is the son of poor immigrants from southern China. The chain's mascot, a perpetually smiling bee with a red jacket, is a nod to Filipinos' hardworking of Filipinos see the brand as a part of their national identity, with its signature fried chicken, burgers and spaghetti becoming a staple for family 2014, a shortage of its Chickenjoy fried chicken led to the #ChickenSad trend on social has 1,600 stores in 17 countries, including the UK, the US, Spain and Singapore.
