OMNI Features｜Ministry of Economic Affairs Supports the DPP and TPP Versions of the Electricity Price Review Mechanism Amendments．HSBC lends $23m for Malaysian firm's Vietnam solar project

(Source: iStock_Credit_Khoa Nguyen)

｜Ministry of Economic Affairs Supports the DPP and TPP Versions of the Electricity Price Review Mechanism Amendments
Today, negotiations among the Legislative Yuan's party caucuses regarding Article 49 of the Electricity Act failed to reach a consensus. Both the Democratic Progressive Party (DPP) caucus and the Taiwan People's Party (TPP) caucus proposed amendments aimed at enhancing the professionalism and impartiality of the Electricity Price Review Committee. The Ministry of Economic Affairs expressed its support for the development of a more professional and transparent electricity price review mechanism.

The Ministry of Economic Affairs explained that the proposal from the Kuomintang (KMT) caucus, which requires the resolutions of the Electricity Price Review Committee to be reviewed by the Legislative Yuan before implementation, is inconsistent with the common international practice where such review committees are established by administrative bodies or electricity regulatory agencies. This proposal would undermine the independence of the Electricity Price Review Committee, increase uncertainty in the review outcomes, affect Taiwan Power Company's financial management and sustainable operations, and adversely impact industrial investment decisions.

The amendments proposed by the DPP and TPP caucuses focus on two main areas: first, ensuring that experts, scholars, and representatives from civil society comprise no less than half of the committee to guarantee the professionalism and impartiality of its decisions; and second, maintaining principles of openness and transparency in the review process, considering the impacts on people's livelihoods, prices, industrial competitiveness, and energy use efficiency.

｜HSBC lends $23m for Malaysian firm's Vietnam solar project
HSBC and Malaysia's Leader Energy have secured a 593 billion Vietnamese dong ($23.3 million) financing deal for a solar power plant in Binh Thuan, southern Vietnam. Leader Energy plans to use the seven-year loan to refinance its power plant, which annually produces 83,000 megawatt-hours of electricity and offsets 75,000 metric tonnes of carbon. Group CEO Jenny Ng highlighted that this investment aligns with their goal of achieving net-zero greenhouse gas emissions by 2050, as the company shifts from coal and diesel to renewable energy.

Vietnam, the leading solar power producer and exporter in Southeast Asia, continues to draw investment beyond Malaysia. Notably, Thailand's B. Grimm Group operates one of the region's largest solar farms in Vietnam, and First Solar, the top U.S. solar panel producer, owns a significant factory in Ho Chi Minh City. As a supply chain hub, Vietnam is increasing alternative energy production to counter power outage concerns, with Leader Energy's efforts seen as crucial in mitigating climate change.

Despite Vietnam's abundant sunshine, some solar projects have struggled with profitability since the government halted generous fees for producers in 2019. However, Leader Energy secured financing partly because its plant had locked in those fees for a 20-year term before they were phased out. HSBC Vietnam's head of wholesale banking, Ahmed Yeganeh, emphasized the financial sector's role in unlocking Vietnam's renewable energy potential. Environmental challenges persist, with coal use rising to prevent blackouts and costs slowing the green transition, though Vietnam aims to close coal plants early under an Asian Development Bank program.

Reference: MOEA｜Nikkei Asia