Many offshore wind power investors are holding their breath waiting for the next move of the Ministry of Industry and Trade and the Government.

Since many wind power projects may not be put into commercial operation prior to October 31, the Prime Minister and Ministry of Investment and Trade have been asked to extend the feed in tariff (FIT) application.

Several wind power projects currently under development in the Mekong River Delta area are rushing to complete and start operating on a commercial basis before the November deadline,

A total of 106 wind power plants nationwide with a combined capacity of more than 5,655 MW have registered to conduct commercial operations and join the national grid, according to Vietnam Electricity (EVN).

The government this month requested the Ministry of Industry and Trade to review and re-submit the Power Development Plan VIII as the scheme is geared towards speeding up establishment of a competitive electricity market.

Many large corporations want to develop offshore wind power projects in Vietnam, but existing bottlenecks have made them hesitant to proceed.

Despite Vietnam’s huge potential, by the end of 2020, wind power accounted for less than 1 per cent (or 670MW) of the nation’s total installed capacity.

Vietnam has a globally relevant offshore wind resource, enabling it to generate 30% of total national electricity by 2050.

Vietnam, a global phenomenon in renewable energy development, has risen to the top of the region in terms of renewable energy, particularly solar power, in a short period of time. 

Vietnam’s total output of electricity from renewable energies hit 9.5 billion kWh in the first four months of 2021, up 156.9% year-on-year, and accounting for 11.8 percent of the total electricity output, according to Vietnam Electricity.

A number of wind power projects are facing difficulties as taxation agencies have stopped VAT refunds.

Wind and solar power are sustainable energy sources that are prioritized for development.

Reducing the cost of capital for offshore wind power projects in Vietnam will be the main driver for lowering electricity costs and encouraging investment in such projects, 

The Feed in Tariff (FIT) price of VND2,000 per kwh will expire in seven months, but the price for the next period has not been fixed yet.

Wind and solar power continues to be prioritized but solutions are needed to ensure the safety of the electricity system when operating volatile sources of energy.

Wind power developers, who are running against time to put their projects into operation prior to November 2021, now face another problem: they may not get a VAT (value added tax) refund because of certain regulations.

Sharing the same fate as solar power, sales of wind power in Vietnam are expected to be difficult because of "severe excess electricity" at some point in time.

Many wind power projects are being developed at a time when the transmission line has become overloaded. As a result, there could be difficulty selling power.

In Huong Hoa, called the "wind-power metropolis" of Vietnam, one sao (1 sao = 360 square meters) of hilly land is priced at VND4 billion.

Investors from the UK were showing significant interest in investing in renewable energy projects in Vietnam, especially wind power,