According to calculations by the Global Wind Energy Council (GWEC), Vietnam will have about 4,000 MW of wind power projects “missing the appointment” for commercial operation (COD).

Many “big guys” strongly pour capital into renewable energy

According to data from the Ministry of Planning and Investment, in the past 5 years, FDI inflows and many domestic “big players” have poured heavily into the renewable energy industry. Notably, in 2020, the field of electricity production and distribution attracted a total investment of over 5.1 billion USD, accounting for 18% of the total registered investment capital, 38 times higher than in the previous 5 years. .

KPMG’s report also shows that in 2020, 35% of newly registered FDI projects are in the energy sector ($5.081 billion, with 20 new projects), ranking second only after the manufacturing industry. export.

More than a year ago, Vietnam only had about 400 MW of wind power generation capacity installed, now, the whole country has more than 2,000 MW of wind power projects in operation or under construction.

Previously, in Official Letter No. 795/TTg-CN dated June 25, 2020 on adding the list of wind power projects to the electricity development planning, the Prime Minister agreed to add an additional 7,000 MW from new wind power projects into the master plan of Vietnam’s power sector, based on reports and proposals of the Ministry of Industry and Trade in Official Letters No. 1931/BCT-DL dated March 19, 2020, and No. 3299/ BCT-DL dated May 8, 2020, on the consideration of supplementing the planning of wind power projects.

Covid-19 can “fly” more than 6.6 billion USD

The latest data from the Electricity of Vietnam (EVN) shows that, out of 106 wind power plants with a total capacity of 5,655.5 MW registered for commercial operation (COD), by October 22, 2021, Only 28 wind power plants with a total capacity of 1,247.4 MW have been COD recognized.

Thus, only about 1 week left, dozens of remaining projects will have to be completed if they want to enjoy the FIT price.

According to calculations by the Global Wind Energy Council (GWEC), due to the impact of the Covid-19 pandemic, there will be about 4,000MW of wind power projects “missing the appointment” COD, resulting in huge loss of energy. investment and future jobs. With financial risk estimated at $6.51 billion in fixed asset costs, and $151 million in annual operating costs.

Facing the above situation, GWEC and the global wind power industry have proposed to the Government to allow the extension of the time limit for applying the FIT pricing mechanism by at least 6 months, as a Covid-19 relief measure for Vietnam’s wind power industry.

Mr. Ben Blackwell proposed: “That support plays an important role in ensuring that the investment, and development of wind power projects are maintained, despite difficulties during the pandemic outside the country. In Vietnam, similar support measures are also needed to remove difficulties for the fledgling onshore wind power industry, which is being severely affected. by the Covid-19 epidemic.”

Mr. Mark Hutchinson, Chairman of the GWEC Southeast Asia Working Group, said: “Vietnam is one of Southeast Asia’s biggest potential wind power markets.

However, this is also an extremely important period for the onshore wind power industry, with a total capacity of more than 500MW by the end of 2020. The Government needs to delay the application of the FIT pricing mechanism to create favorable conditions for the wind power industry. 4,000MW wind power projects have economic efficiency, and the ability to realize completion within a reasonable time.

This is not a small problem, because losing this volume of wind power projects will also deal a huge blow to the renewable energy investment environment, and as a result, a cycle of bankruptcy that the electricity market will not lose. Vietnam wind can take many years to recover”.

In addition, Mr. Mai Duy Thien, Chairman of Vietnam Clean Energy Association said that it is very necessary to consider extending the application of the wind power FIT price for a while. If the extension is not extended, among hundreds of wind power projects that have signed power purchase agreements with EVN, there will be many difficult projects.

First of all, there is a problem of capital, because the investment rate of wind power projects is quite high. The investment rate of 1 MW of wind power is about 2 million USD. Next, the projects will face a lot of difficulties in finance as well as the electricity selling price after the expiration of the FIT price, so investors will face many risks.

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