Vietnam’s wind power industry still not prospering
Vietnam could become an emerging wind power market if it removes existing barriers to its progress, experts have said.
Blue Circle and AC Energy have signed a contract on providing turbines to a wind power project in Mui Ne to General Electric (GE) Renewable Energy. With estimated capital of $80 million, it is believed to be the biggest wind power project in Asia.
A wind power project in Ha Tinh worth VND16.2 trillion in Ha Tinh, developed by Solar Power MK, has also been approved by local authorities.
Jerome Pecresse, president and CEO of GE Renewable Energy, commented that Vietnam has made progress compared to two years ago in terms of solar and wind power development.
Vietnam has installed 4 gigawatts of solar power so far. It has greater potential in developing wind power onshore, nearshore and offshore than other countries thanks to its long coastline, wind quality, human resources, and domestic and foreign capital.
The Prime Minister has agreed to the Ministry of Industry and Trade’s proposal to add 7,000 MW of wind power to the national electricity development program as a solution to ensure electricity supply.
|Vietnam could become an emerging wind power market if it removes existing barriers to its progress, experts have said.|
Experts say wind and solar power's initial costs are higher, but in the long term, renewable energy will not lead to high electricity prices.
However, the implementation of wind power projects hasn't gone smoothly. Investors have asked to extend the application of the FIT (Feed in tariff) price of 8.5-9.8 cent per kwh for six months or one year (under the current regulation, the FIT would be applied only to projects operating prior to November 1, 2021).
As investors are racing to put their wind power plants into operation and connect the national grid prior to November 1, 2021, they have had to pay a lot of additional expense items. Covid-19 has also had a big impact on project execution.
“Investors only have 18 months to enjoy the FIT price, too short to implement new projects. We want to know how high the FIT will be after November 1, 2021,” said Bui Van Thinh, chair of the Binh Thuan Wind Power Association.
Experts believe that Vietnam’s wind power potential could be up to hundreds of thousands of MW. However, the Ministry of Industry and Trade (MOIT) last March reported that of 4,800 MW added to the national electricity development program, only nine projects with total capacity of 350 MW had become operational.
As such, Vietnam would have to implement projects to obtain 7,000 MW of wind power as planned by MOIT.
Provincial authorities are responsible for choosing investors and implementing the newly added projects.
Vietnam’s offshore windpower potential is great, and the opportunities to develop it must not be missed just because of difficulties in the development of this new industry.