The need to extend FIT mechanism to promote wind power development in Vietnam

This is the viewpoint of experts and investors at the online talk show  “Supporting mechanism for wind power development in Vietnam”, organized on 18 April 2020 by the Vietnam Initiative for Energy Transition (VIET) coordinating with the Vietnam Clean Energy Association Ho Chi Minh City representative office (VCEA HCM)  and Binh Thuan Wind Power Association.

According to Dr. Hoang Giang - representative of the VCEA HCM, wind power with great potentials will be one of the important power sources contributing to ensure power supply in the 2021 – 2015 period, especially when many large power projects are behind schedule. However, the duration to enjoy Fit-in-tariff rate under Decision No. 39/2018/QD-TTg of the Prime Minister to 31 October 2019 is one of the obstacles for wind power projects, especially in the complicated context of the COVID-19 pandemic.

So as to solve the difficulties of wind power projects, on 9 April 2020, Ministry of Industry and Trade (MOIT) issued Official Letter No. 2491/BCT-DL submitted to the Prime Minister for consideration of extending the time duration to apply FIT rate for wind power projects in Vietnam until December 2023. At the same time, assigning MOIT to calculate and propose a new wind power purchase price applying to wind power projects with operation date from 1 November 2021 to 31 December 2013.

Mr. Le Anh Tung – Chairman of Directors Board of Vietnam Ecotech Company, the investor of wind power project shared, MOIT’s proposal is necessary, due to the COVID-19, stoppage in producing turbines currently by many companies and slow delivery. While, if there is no timeline completing the project, no bank will dare to lend investors money to implement projects. “Extension of the FIT rate application will create the trust for investors”, Mr. Tung also said.

At the working session, experts and investors also analyzed and discussed on shortcomings of grid capacity release; medium and long-term policies on promoting wind power in Vietnam such as tax policy, licenses for implementing offshore wind power projects; mechanism of wind power bidding and liability of the relevant parties, etc. Besides, the delegates also proposed issues that need to be legalized to improve wind power development; mechanisms for supply chain establishment of wind power development.

According to Report of MOIT, as of March 2020, there have been 78 wind power projects in Vietnam with a total capacity of about 4.8GW added to the plan; 11 projects (total capacity of 377MW) in operation; 31 projects (total capacity of 1.62GW) signed the electricity purchase contract and expected to operate in 2020-2021. Besides, there are 250 projects with a total capacity of about 45GW proposed to be added to the power development plan.


  • 20/04/2020 04:32
  • evn.com.vn
  • 1104