The projects — a mix of greenfield and partially developed sites — will form part of the 1GW initiative GE and Vietnam’s industry and trade ministry signed in May 2016 to accelerate the build-out of large-scale wind farms in the south-east Asian country.
"We aim to start construction in 2018. As the agreement progresses, we plan to make further joint announcements," says Andy Kinsella, group chief operating officer of Mainstream Renewable Power.
To meet increasing power demand, Vietnam’s Power Master Plan VII foresees increasing output from 194–210TWh in 2015 to 330–362TWh in 2020. Renewable energy resources are part of Vietnam’s energy mix to meet this target.
The feed-in tariff (FIT) rate for wind in Vietnam, which has been in effect since 2011, is VND 1,614/kWh ($0.078/kWh). However the rate is low and has not stimulated Vietnam’s wind industry, which stands at just over 151MW, despite the country having some of the best wind resource in south-east Asia. The current feed-in tariff rate is under revision.
The projects Mainstream and GE Energy Financial Services intend to develop, build and operate will also provide opportunities for co-operation with local and international developers. The projects will receive financing through a Mainstream and GE Energy Financial Services joint development agreement.
Singapore-based Asia Green Capital is also developing wind farms in Vietnam, including the 60MW Hirondelles project.