The Vietnamese wind power market is still in early stage of development

At least 8.6 percent of mainland area can be used to install large wind turbines. To date, seven wind power projects have been put into operation, and more wind power projects have been registered.

Wind power can help Vietnam more easily fulfill commitments on adaptation to climate change, but also gradually reduce reliance on power imports and the use of fossil fuels.

However, Nguyen Van Thanh, deputy director of the Electricity & Renewable Energy Department under the Ministry of Industry and Trade (MOIT), admitted that the development of wind power sources in Vietnam “has been going very slowly”.

Vietnam is still far from the goal it has set on electricity development, under which renewable power would account for 6.5 percent of total power generation sources by 2020 and 6.9 percent by 2030. Vietnam would need to have 800 MW of wind power by 2020 and 6,000 MW by 2030.

Asked about the difficulties power companies are meeting, Bui Vinh Thang from Mainstream Renewable Power said the biggest problems all relate to the policy.

He said the provisions in MOIT’s sample contract put investors at high risk, and this is why banks and finance institutions refuse to provide loans to investors.

Commenting about Vietnam’s policies on developing wind power, Steve Sawyer, secretary general of GWEC (Global Wind Energy Council), said they still cannot meet investors’ needs and requirements for market development. Vietnam is still in the very early stage of wind power development with low installation capacity, 190 MW, while very few projects can bring profit.

He said the world’s wind power has gained a two-digit growth rate in the last 15 years  thanks to a stable legal framework and encouragement from R&D. In 2017, over 52.5 GW worth of wind power capacity was installed, raising the total capacity to 539 GW.

Vietnam has an urgent need to find a clean, affordable source of energy. 

A World Bank research project shows that Vietnam’s potential in wind power are the biggest in the region. Its wind reserves are estimated at 513,360 MW, or six times higher than the total capacity of the whole electricity industry by 2020. 

Sawyer believes that Vietnam’s wind power sector will attract investors if the legal framework is clear and stable.

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