Windpower Monthly rating 3.5/5
Our rating is based on a combination of project pipeline, political and policy support, investor confidence and structural readiness of the country in terms of grid infrastructure, permitting process and local supply chain.
Forecast of installed and operating wind power capacity based on the latest statisitics and measured against the Windpower Intelligence database.
Established, international companies attracted by high tariffs and good wind resources have been moving into the Vietnamese wind power market – often through partnerships with local firms.
Vietnam has no tenders currently in place, and instead operators secure revenue through 20-year power purchase agreements with state-owned utility Electricity of Vietnam (EVN).
The power deals include tariffs of US$85/MWh for onshore wind and US$98/MWh for offshore wind.
Despite agreements being signed with a state-owned utility, the government does not act as a guarantor should EVN default on payment.
The government is otherwise supportive of wind power and optimistic about its potential in Vietnam.
The country’s 2016-2030 renewable-energy development strategy (Reds) envisages 800MW installed by 2020, 2GW by 2025, before ramping up to 2030. The country’s current installed capacity stands at just 289MW.
Wind resources are best in country’s south-east, close to the coast.
THAILAND: Wind power moved from pipedream to reality in Thailand during 2013.
SOUTH EAST ASIA: Across the south-east Asian markets of Philippines, Taiwan, Thailand and Vietnam, collective installed wind capacity has grown by more than 166MW in the past year, all of it onshore.
VIETNAM: Developer Blue Circle has completed construction of the 40MW Dam Nai project, the country's largest onshore wind farm.
VIETNAM: Companies targeting Vietnam for development will face obstacles in permitting and financing.
VIETNAM: Prime minister Nguyen Xuan Phuc has raised the tariffs for both onshore and offshore wind projects in the south-east Asian country.
VIETNAM: Enercon has entered the Vietnamese wind market with two orders for projects with a combined capacity of 77MW.
VIETNAM: Siemens Gamesa Renewable Energy will supply 12 more turbines to a project in the south of the country, adding to the three it has already installed at the site.