As an emerging economy, Vietnam is seeking options to meet its growing electricity demand. The forthcoming National Power Development Plan VIII (PDP8) provides an opportunity to increase the share of renewable energy and to realize the installed capacity target for wind power until 2030.
Vietnam’s wind resources mostly lie along its coastline of more than 3000 km, and in the hills and highlands of the northern and central regions. The Global Wind Atlas estimates that over 39% of Vietnam’s area has annual average wind speed over 6 m/s at a height of 65 m, and over 8% of Vietnam’s land area has annual average wind speed over 7 m/s. This corresponds to wind resources potential of 512 GW and 110 GW. Taking into account land-use restriction – excluding mountain areas with slopes of more than 30%, fractured spaces with a size of less than 1 km² and areas more than 10 km away from existing power lines, the technical potential of onshore wind power is about 42 GW for utility-scale wind farms.
The situation of investment and development of wind power projects by March 2020 is as follows:
– 78 projects with a total capacity of about 4.8 GW added to the power development plan
– 11 projects with a total capacity of 377 MW are in operation
– 31 projects with a total capacity of 1.62 GW have signed PPA and are expected to come into operation in 2020-2021.
– In addition, 250 projects with a total capacity of ~ 45 GW are requesting to be included in the power development plan.
Although Vietnam had a FIT for wind power in 2011 at 78 USD/MWh, it was considered not feasible commercially. The FIT was then revised in November 2018 to 85 USD/ MWh for onshore wind projects and 98 USD/MWh for offshore projects (Decision No. 39/2018 / QD-TTg of the Prime Minister Nguyen Xuan Phuc 2018).
Until today, the future for wind power projects that have the Commercial Operation Date (COD) after 1 November 2021 has not been determined. The Prime Minister has assigned the Ministry of Industry and Trade to propose and submit to the Government for consideration and decision on the auction mechanism for wind power projects and electricity purchase price. However, the Ministry of Industry and Trade issued Official Letter No.2491/BCT-DL on 9 March 2020 submitting to the Prime Minister to consider to:
– Extend the duration to apply FIT for wind power projects in Vietnam to December 2023.
– To assign the Ministry of Industry and Trade to calculate and propose a new wind power purchase price applicable to wind power projects that have COD from 1 November 2021 to 31 December 2023.
In this context, Vietnam Initiative for Energy Transition (VIET) in collaboration with Vietnam Clean Energy Association (VCEA) in Ho Chi Minh City and Binh Thuan Wind Energy Association (BWEA) organize an online dialogue with the following contents:
– Discuss the role of FIT for wind power development in the long-term.
– Analyze and discuss the limitations of releasing power capacity, socialize grid investment to promote wind power development (onshore / nearshore / offshore).
+ PDP8/Scenarios for Wind Energy
+ Curtailment issues.
+ Transmission grids, should it be socialized? How to implementation?
+ Propose policy comments accordingly.
– Propose solutions to promote the sustainable development of the wind power industry in the future.
+ Tax policy, licenses required to deploy offshore wind power.
+ Auction mechanism: unit charge of organizing the auctions, PPA contract, responsibilities of stakeholders.
+ Mechanism to establish the domestic supply chain for offshore wind.
+ Propose issues that need to be stipulated by-laws.
Time: 14.00 – 16.00, Saturday, April 18, 2020
Format: Organized online via Zoom
Participants: Investors, EPCs, Capital Investment Funds, Experts, Scientists, NGOs, Media.
Guest / Experts:
– The representative of VCEA HCM – Dr. Hoang Giang, Mr. Dang Quoc Toan
– The representative of Binh Thuan Wind Association – Mr. Bui Van Thinh
– The representative of Investors – Mr. Le Anh Tung
– The representative of the World Bank – Mr. Tran Hong Ky
– The representative of the Scientists:
Dr. Nguyen Anh Tuan – Renewable energy Expert, Institute of Energy
Dr. Nguyen Hong Phuong – Expert on Power Grid Modelling and Simulation, VIET-TU/e University, Netherlands
Dr. Dinh Van Nguyen – Expert on Evaluation and Zoning of Wind Power, VIET-University of Cork, Ireland.
Dr. Vu Van Tuyen, Intelligent NGR Solution, Clarkson University, NY, USA.
Note: Zoom online account will be sent via registered email before 15:00 on 17/04/2020