Feed-in-tariffs to rise as Vietnam desires sustainability

Feed-in-tariffs to rise as Vietnam desires sustainability

VIR that the new price for wind power could be raised to 9 cents per
kilowatt-hour from the current 7.8 cent/kWh.

"With this new price, wind power is going to be more feasible to many
investors," the official said, declining to be named.

The current feed-in-tariff (FiT) for wind power released in 2011 does not
meet the expectations of wind power investors. They complain that this FiT
is too low to provide any profits, and is too little to guarantee banks
loans, ultimately resulting in the delay of several wind power projects.

To encourage investment in renewable energy projects, MoIT has also
submitted the first draft on incentives for solar power projects to the
prime minister.

Under the draft, the ministry proposed a set FiT of 11.2 cents/kWh for solar
power. This level is higher than the current tariff set for wind power
plants (7.8 cents/kWh), biogas plants (7.28), and waste-to-power plants
(10.05).

Debates over FiTs for wind and solar power plants are intensifying, as MoIT
is in the process of revising the support mechanisms granted to wind and
solar power projects.

According to MoIT sources, the time to apply the new price of wind and
solar power may be late 2016, which would ease concerns of Thien Tan Group
as this private firm's 19.2 megawatt solar power plant in central Quang Ngai
province is expected to connect to the grid in late 2016.

Huynh Van Lap, chairman of Thien Tan Group, told VIR in a previous interview
that the project's connection date depends on the government-set FiTs. "How
do we sell a product if there is no price?" he said.

Thien Tan Group stated that a compromise could still make undertaking solar
projects a worthwhile endeavour.

Nguyen Duc Cuong, head of MoIT's Institute of Energy, said currently, there
is no detailed regulatory framework for solar power generation projects in
Vietnam, and the upcoming decision may be considered an incredibly important
step for solar power development in the country. "A greater understanding of
the involved regulations would help to attract more investors to this type
of renewable energy."

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Ref:
http://www.vir.com.vn/feed-in-tariffs-to-rise-as-vietnam-desires-sustainabil
ity.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com