Scenario: an investor with an onshore wind project that “missed” the FIT (expired 31 October 2021) is negotiating price with EVN and asks: “How is the new price computed — is there a formula?” The answer: no more one-size-fits-all fixed price — the new regime is price frameworks plus negotiation/bidding, with each project priced individually.
After FIT: from fixed price to price framework
The preferential FIT for wind (8.5 US cents/kWh) expired on 31 October 2021. Onshore wind projects moved to the new regime: generation price frameworks issued by MOIT for each generation type, with the specific sale price negotiated between the investor and EVN within the framework — or via bidding for investor selection under the new Electricity Law. Meaning: no more “common price”; each project negotiates a price reflecting its real costs.
Transitional projects: the group “stuck” between eras
Transitional projects — mid-investment when FIT expired but not yet operating — hurt most: capital was committed on FIT-price expectations, now they must negotiate lower prices within the framework. Experience: do not negotiate price before audited total investment is locked — frameworks are built on reasonable costs, so firmer input data means better-defended negotiated prices. Many transitional projects had to restructure financing (debt rescheduling, equity top-ups) to live with the new price.
Negotiating PPAs with EVN: 3 key points
One, price within the framework: prepare full, transparent cost dossiers — your negotiation “ammunition”. Two, curtailment clauses: when the grid is congested, wind is curtailed first — negotiate compensation/offset mechanics clearly. Three, payment and guarantees: EVN’s model PPA payment terms need close review, especially for foreign-borrowed projects. Also, do not overlook the DPPA option (Decree 57/2025/ND-CP): direct sales to large customers can beat EVN prices in some cases.
Recommended actions
1. Audit total investment before sitting at the price table. 2. Model returns at framework prices, not old FIT. 3. Negotiate curtailment terms hard in the PPA. 4. Compare selling to EVN versus direct DPPA.
Frequently Asked Questions
What is the new pricing mechanism for wind (bidding, frameworks)?
Since FIT expiry on 31/10/2021, onshore wind moved to: MOIT-issued generation price frameworks per generation type, with specific prices negotiated between investors and EVN within the framework — or bidding for investor selection under the new Electricity Law. No more “common price”; each project gets its own price.
How are transitional projects handled?
Projects mid-investment at FIT expiry must negotiate new prices within the framework. Experience: audit total investment before negotiating (frameworks are built on reasonable costs); many projects had to restructure financing (debt rescheduling, equity top-ups) to live with the new price.
What should PPA negotiations with EVN watch?
Three points: (1) full transparent cost dossiers as price-negotiation “ammunition” within the framework; (2) curtailment clauses for grid congestion — negotiate compensation clearly; (3) close review of payment and guarantee terms in EVN’s model PPA, especially for foreign-borrowed projects.
How to model financial returns at the new price?
Model at framework prices (below old FIT), with curtailment scenarios and FX risk if foreign-borrowed. Never use the old FIT price as baseline — the most common mistake of transitional projects.
Is DPPA an alternative to selling to EVN?
It can be. Under Decree 57/2025/ND-CP, wind projects of 10 MW or more in the wholesale market can sign forward contracts selling directly to large customers — sometimes at better prices, while helping customers meet RE100 goals.
Why did many wind projects “miss” the FIT?
They failed to reach commercial operation before 31/10/2021 (site clearance, grid connection, equipment, COVID-19 and the like), missing the 8.5 US cents/kWh FIT and moving to the lower new pricing with full financial remodelling.
