Specifically, according to the Decision No. 39 of the Prime Minister (signed on 10/9/2018, coming into force from 01/11/2018), the tariff of wind power for the projects installed in the sea is 9.8 US cents/kWh (VND 2,223/kWh). With wind power projects installed in the mainland, the selling tariff at connection points is 8.5 US cents/kWh instead of the current tariff of 7.8 US cents/kWh (this tariff will be adjusted following the fluctuation of VND/USD). The feed-in tariff from wind power projects will be calculated in the input data of annual power selling tariff of Viet Nam Electricity Corporation (EVN).
Wind power tariff with an increase of nearly 10% compared with it before will stimulate the projects being implemented
Mr. Bui Van Thinh, President of Binh Thuan Wind Power Association said that Decision 39 will be a new and powerful "push" for the sectors of green energy in general, wind power in particular.
On 18/4/2017, when the Prime Minister worked in Binh Thuan, Binh Thuan Wind Power Association made a written proposal to the Prime Minister for consideration of raising the tariff for wind power. In fact, the tariff of wind power (7.8 US cents/kWh) is too low, not profitable for investors. This is the main reason for the delay in wind power projects.
“In Decision No. 39 of the Prime Minister, the tariff of wind power increases by nearly 10%. This reflects the government's policy priorities. In our opinion, 8.5 US cents/kWh is a good tariff for on-going projects," said Mr. Thinh.
The President of Binh Thuan Wind Power Association said that the decision abrogated Article 9 of Decision No. 37 (after 12 months of not being commenced, the project will be revoked), but at the same time, there are specific conditions for commencing projects, it is perfectly appropriate to today's reality. "In order to dodge the law, many project owners commenced splendidly, then has done nothing. This wastes land fund and creates a bad impression on wind power projects. "
That the validation of Decision No. 39 only applied until 01/11/2021 is fully consistent with international practices. This motivates project owners to make real investments in wind power, which is developing more slowly than solar power.
Non-deployed projects resolutely withdrawn
Mr. Do Minh Kinh, Director of Binh Thuan Department of Industry and Trade, said that according to the plan to 2020, with vision to 2030 as approved by the Ministry of Industry and Commerce, the installed wind power capacity of Binh Thuan reached approximately 700MW, 1,500 million kWh of respective output; By 2030, the installed capacity will reach 2,500MW, generating an output of 5,475 million kWh.
Currently, Binh Thuan has 19 wind power projects approved in principle by the province for survey, study and approval of investment (capacity of 1,192.5MW). Of which, 12 were granted investment registration certificates by the provincial People's Committee (total capacity of 507.3MW). Of the 12 projects, 3 ones have been put into operation: Phong Dien 1 Binh Thanh, Thuan Binh Phu Lac and a project on Phu Quy island.
According to the leaders of Binh Thuan Department of Industry and Trade, the Prime Minister's Decision No. 39 was issued to promote and "bind" wind power projects. Only real investments can dare to conduct commencement. As regulated by the Prime Minister, before the commencement of any project, units shall complete the compensation, clearance and handover of the construction site and especially signed contracts with the buyer, EVN.
Mr. Huynh Van Dien – Chairman of Tuy Phong District People's Committee (DPC) (where the first two wind power projects of whole country came into operation) said that Tuy Phong is home to wind, solar power projects in the province with its more sunshine, wind hours than any other localities in the country. With this new policy, District People's Committee will update, monitor and best facilitate its deployment of wind and solar power projects. However, if any project owner deliberately holds the land for transfer purpose, the DPC will recommend the province to revoke such project.
Sharing the same point, Mr. Do Minh Kinh said, upon the Prime Minister's wind power policy, the Department of Industry and Trade will advise the provincial People's Committee to urge the implementation of projects. If any project fails to do and no reason proves to be proper, it will be revoked. "Previously, the power tariff was said to be low, it would make a loss. Now the power tariff has been increased by the Government at 10%, there is no reason to delay the implementation. Any projects with unqualified investors should be revoked to transfer to the qualified and goodwill investors," affirmed Mr. Kinh.