JavaScript is off. Please enable to view full site.

Vietnam says no extension of price offer for wind power developers

Vietnam says no extension of price offer for wind power developers

Friday, October 01, 2021, 09:20 GMT+7
Vietnam says no extension of price offer for wind power developers
Power-generating windmill turbines are pictured at a wind park in Bac Lieu province, Vietnam, July 8, 2017. Photo: Reuters

HANOI -- Vietnam will stick to its plan to end its offer of a fixed wind power feed-in tariff (FiT) in November, the government said on Thursday, despite calls from developers to extend it due to coronavirus-induced delays on their projects.

Vietnam was looking to more than double its power generation capacity over the next decade with a focus on renewable energy. In 2018 it set the FiT at 8.5 cents/kWh for wind energy projects that could become operational before Nov. 1 this year.

The Global Wind Energy Council (GWEC), which represents developers, in a statement earlier this month asked the government to postpone the FiT deadline by six months to April next year due to pandemic-related delays. 

The Ministry of Industry and Trade will switch to a new mechanism to set the wind power prices through bidding processes.

"Shifting from a mechanism of a fixed price to a bidding mechanism is the global trend and is in line with Vietnam's legal system," Hoang Tien Dung, head of the ministry's Department of Electricity and Renewable Energy, said in the statement.

In an email interview with Reuters earlier this month, William Gaillard, Asia Pacific sales vice-president of wind turbine provider Vestas, said that without the FiT, projects face huge uncertainty over their future revenue, if not a risk of default under their project finance terms.

"Facing sizable risk on investment and renewable jobs, future investors will shy away from the market and Vietnam will not have the booming wind energy sector we have seen in recent years," Gaillard said in the interview.


Read more




Vietnamese woman gives unconditional love to hundreds of adopted children

Despite her own immense hardship, she has taken in and cared for hundreds of orphans over the past three decades.

Vietnam’s Mekong Delta celebrates spring with ‘hat boi’ performances

The art form is so popular that it attracts people from all ages in the Mekong Delta

Vietnamese youngster travels back in time with clay miniatures

Each work is a scene caught by Dung and kept in his memories through his journeys across Vietnam

Latest news