Vietnam's plan to develop 800 MW wind power delayed

Vietnam's plan to develop 800 MW wind power delayed

MOIT in November 2016 announced that the ministry submitted to the
government w plan to raise the wind power prices which Electricity of
Vietnam (EVN) would buy from electricity generators, and that the plant
would be approved by the end of 2016 or early 2017 at the latest.

However, in the latest news, the new wind power prices have been delayed,
and the new deadline is the first quarter of 2017.

Bui Van Thinh, chair of the Binh Thuan provincial Windpower Association,
director of Thuan Binh Wind Power JSC, said he was disappointed about the
delay.

Thinh said the association has asked the government to raise the wind power
price to 9.5 cent per kwh on average to ensure profit for investors.

"We were initially told that the new prices will be fixed in December. But
we have been just informed that the new deadline is the first quarter of
2017," he said.

A research work by GIZ showed Vietnam's wind power reserves is 10,000 MW.
The government, referring to the forecast, set up the target of developing
1,000 MW of wind power by 2020.

The target of developing 800 MW wind power by 2020 may be unattainable as
the plan to adjust the wind power purchasing price has been delayed.
Later, when reconsidering the Vietnamese conditions, it lowered the target
to 800 MW in the amended national strategy on renewable energy development.

However, analysts have warned that even the lower target was not feasible.
Vietnam only has three more years to implement the national strategy, but
only four wind power projects in Vietnam have become operational with total
capacity of 160 MW.

The total wind power capacity registered by investors has reached 5,700 MW.
However, most of the investors have not implemented the registered projects,
because they expect a loss with the current price of 7.8 cent per kwh, the
lowest wind power price level in the world.

In Ben Tre province, the local authorities have licensed five wind power
projects with total capacity of 150 MW, but all the investors are waiting
for the new wind power prices.

Thinh estimates that with 35 million euro loan from KfW, the Phu Lac wind
power plant in Binh Thuan province has to pay 3 million euro, or VND70
million. If the weather is ideal, the plant can obtain revenue of VND100
billion. After paying debt, it would have VND30 billion only to cover
expenses and pay tax.

Investors said that wind power projects had risks not only because of the
low electricity price, but also because of other problems, including poor
seaport and road conditions.

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Link to Original Article:
http://english.vietnamnet.vn/fms/science-it/173003/vietnam-s-plan-to-develop
-800-mw-wind-power-delayed.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com