Thứ Ba, 13 tháng 12, 2016

Changes needed for Development on Wind Energy in Vietnam

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For economic sustainable development combined with environmental protection, the Government of Vietnam has made significant steps  in the  formulation of policies on renewable energy  development, which take  advantages  of  favorable  conditions  for the  production of  wind energy.


Many policies  have been  initiated  to  support  wind  power  project,  including  power  price assistance  from central  budget;  assistance to grid  and off-grid  connected wind power projects...focusing on wind power electricity development target to achievethe total wind power capacity from  the  current  negligible  level  to  around  800  MW  by  2020  and around  6,000 MW  by  2030, raising the rate of electricity from wind power accounted for 0.8% in 2020 to 2.1% in 2030.

Some financial policies for investment projects under the Clean Development Mechanism (price supporting mechanism) are issued. Moreover, the   Government   published   independent mechanisms to support  wind power projects on electricity price for grid-connected wind power projects, power purchase agreements for wind power projects.


 Nonetheless, there  are  difficulties  in  the  development  of  wind  power projects  in Vietnam  that should not be ignored. The first thing is difficulty of legal framework. The system of legislation, mechanisms and policies for wind power development are not synchronized.  New project must be  granted  by  the  Ministry  of  Industry  and  Trade  to  establish  the  supplementary  planning procedures  prior  to  implementation.    Power  purchase  agreement  with  EVN  will  be  required  as the initial condition to obtain investment permission.

Moving  toward  the  future  of  clean  energy  in  Vietnam,  the  Government  should  focus  on implementation of preferential treatment to wind energy projects to increase the competitiveness of this renewable energy. In addition, the Government should also collaborate with investors, and industry  experts  to  continue  to  research  the  wind  power potential  in  Vietnam, further  attract investment  and  assistance  from  domestic  and  international  organizations  for  the  wind  power projects.  Further, it is in the meantime required to have synchronized policies, legislations with the establishment of government authority to execute wind power planning and management to remove unreasonable barriers.

The  increase  in  purchasing  price  from  EVN  will  be  attracting  more  investment.   It  has  been discussed  on  the  increase  of  buying  price  from  7,8  US  cent/kWh  however  the  timeline  for  the increase has not yet been finalized.

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