The Ministry of Industry and Trade has written to the Government proposing extending feed-in tariffs (FITs) for wind power projects until the end of 2023.
According to the prime minister’s Decision 39 on supporting the development of wind power, wind power projects will enjoy FITs until the end of 2021. However, due to the negative impact of Covid-19, many wind power projects have been postponed and will not be completed on time.
“Many companies have suspended their production, causing shortages of construction materials and equipment for wind power projects. As a result, the projects cannot be finished as scheduled. I hope the Government will extend FITs to support investors,” said Bui Van Thinh, president of the Binh Thuan Province Wind Power Association.
Vietnam holds great potential for wind power development. Data from the Ministry of Industry and Trade showed that there are currently 11 wind power projects operating in the country, with a total capacity of 377 megawatts (MW). Over 31 projects with a total capacity of 1,660 MW are scheduled to be put into operation in 2020 or 2021.
Thinh noted that construction technology and the technical requirements of wind power projects are much more complicated than those associated with solar power projects.
In addition, wind power projects are facing a number of issues such as leasing procedures for land and water and problems with national security and defense.
Many investors are also concerned that the power transmission infrastructure will be overloaded when proposed or in-progress wind power projects are finished and put into operation.
Thinh stated that Phu Lac wind power plant in Binh Thuan Province sometimes had to cut its capacity by up to 61% due to the overloaded power grids.
Dr Ha Dang Son, director of the Center for Energy and Green Growth Research, said that these issues are a great challenge for investors and the Ministry of Industry and Trade, hampering the development of clean energy. He expressed hope that the country’s power plan will see drastic adjustments to address these issues and ensure the sustainable development of the power sector. SGT
Due to the impact of the COVID-19 pandemic, the Ministry of Industry and Trade (MoIT) proposed maintaining the FiT for wind power until December 2023, switching to bidding later.
If Vietnam can create reasonable policies and keep strict control over the development, it may become an emerging market in the wind power industry.