The Government has issued Decision 39/2018/QD-TTg, raising the buying price of wind power from November 1 by some 10% to encourage investments in this source of renewable energy.
Under the decision, the respective prices of onshore wind power will be 8.7 U.S. cents per kilowatt hour (kWh), up from 7.8 U.S. cents per kWh, which has been in effect since 2011. Meanwhile, the price per kWh of electricity produced by offshore wind farms will remain unchanged at 9.8 U.S. cents.
Wind power turbines in operation at a farm of Phu Lac Wind Power Plant in Binh Thuan Province.
According to the German Agency for International Cooperation (GIZ), which has actively assisted the Vietnamese Government in developing the legal corridor for the wind power sector, the price hike is a positive signal for the sector whose local wind power plants currently can generate only 200 MW of electricity.
Tobias Cossen, head of GIZ’s project to support the upscaling of wind power in Vietnam, said the country has seen increasing demand for energy, and the potential to develop wind power projects is significant, thus attracting the interest of multiple investors. However, the low buying price for wind power has made investors hesitate to get involved in local projects.
The Vietnamese Government’s decision will stimulate investors to develop more wind power projects, Tobias added.
Apart from the price hike, the Government amended a regulation on requirements for investors in wind farms. Accordingly, enterprises will be allowed to develop wind farms if they meet construction requirements in line with the law, and sign contracts with Vietnam Electricity Group and agreements with electricity distributors.
According to the national energy development plan by 2030, Vietnam should generate 800 MW of wind power by 2020, some 2,000 MW by 2025 and 6,000 MW by 2030.