Tuesday,  Oct 23, 2018,12:07 (GMT+7) 0 0
Vietnam’s wind power projects remain underdeveloped
By Thuy Dung
Thursday,  Jun 14, 2018,18:08 (GMT+7)

Vietnam’s wind power projects remain underdeveloped

By Thuy Dung

Wind towers at a wind-energy farm in Binh Thuan Province - PHOTO: TL

HANOI – Although six wind-energy projects have been operational for 10 years, with a total capacity of 195MW, Vietnam’s wind power sector remains underdeveloped, industry players said at a seminar on wind power recently.

A member of Binh Thuan Wind Power Association pointed out that Vietnam owns only a small number of operational wind-power projects. Of these, two have been in use for a year, while the remaining four have been running for two to five years, but one of the four works ineffectively due to technical problems.

Vietnam is said to be lagging behind its neighboring countries in Southeast Asia, such as the Philippines and Thailand, where wind-power output is expected to be over 1,000MW at the end of 2018.

Manager of the Electric Power and Energy Management Office under the Department of Industry and Trade of Binh Thuan Province Duong Tan Long noted that wind-power development over the past 10 years has not met expectations.

Difficulties pointed to by Long include low selling prices and connection with the national grid.

The greatest hindrance to development involves the power purchase contract, Bui Vinh Thang, business developer at Mainstream Renewable Power, stressed at the seminar, adding that the model power purchase agreement introduced by the Ministry of Industry and Trade poses investors to a series of risks and difficulties in gaining capital from lender banks.

Thang noted that besides making the contract transparent and simpler, administrative procedures should be simplified to create favorable conditions for wind-power investors.

Based on a recent study by the World Bank projecting Vietnam's potential wind-power source can generate as much as 27GW, the country has considered wind-energy development to be part of its strategic plan to meet rising demand for electricity nationwide. Estimated electricity consumption will grow by 10% annually until 2025.

Nguyen Van Thanh, deputy head of the Electricity and Renewable Energy Department under the Ministry of Industry and Trade, said that in recent years, the Government has offered incentives for renewable energy development, but wind-power development is still slow.

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