The renewable energy market has heated up in the last two years

A recent report from USAID (United States Agency for International Development) found that in the solar power sector, as of 2017, more than 100 new projects had been planned, including 70 in Binh Thuan province.

Transparency International (TI), in a recent special report about Vietnam’s renewable energy market, warned that poor administration and low transparency may lead to massive corruption in the market. The two major risks are related to programming and licensing of investors, and land access.

For wind and solar power projects, the sites play an important role, because areas with high natural wind power or sunshine intensity bring more economic benefits.

Many of the investors registering projects don’t intend to join the market right now, but they are registering to get land plots in advantageous positions. 

It is possible that they will never implement the projects, but they can re-sell the land they book today to investors who have real demand.

An analyst said that nearly all land plots in advantageous positions are occupied, though renewable power plants are only on paper.

The analyst cited a report of GIZ, the German International Cooperation Organization, as saying that 42 wind power projects in 11 southern provinces were registered in 2012. 

Of these projects, 27 were in the reporting phase, 12 got approval from local authorities, two others had finished the technical designing phase, and none had been executed by that time.

Also according to GIZ, by 2017, only five wind power plants had been put into operation, while five others were under construction. 

The analyst believes that the number of projects registered for speculation is higher than the number to be implemented.

The existence of speculators harms the market. As good projects have been booked, real investors have to pay a lot to buy projects, or pay fees for intermediaries.

Transparency in development programming, licensing procedures and project execution supervision is a must for the market to run effectively.

Vietnam is listed among the countries with biggest potential for wind power. The central coastal area, where wind speed is 10 meters per second and wind power density is equal to the world's highest density (over 1000 W/m2) are ideal areas for wind power development at the height of 100 meters.

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Kim Chi