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In order to further improve the accuracy of wind data in the country, the World Bank and GIZ are continuing their efforts in revising the wind atlas. A new Vietnam Wind Power Atlas is expected to be available in Sub-targets regarding the share of electricity production and installed capacity are set for wind energy, solar energy, biomass and hydro power. The total capacity of installed wind power is declared to reach MW in , MW in and MW in , which account for 0. In Vietnam, the main laws governing wind power development are the Investment Law, the Construction Law, the Land law, and the Law on Environmental protection.
There are several indirect support mechanisms aimed at renewable energy technologies in general such as non-tariff incentives from the government. These financial incentives include:. The FiT is applicable to projects for a limited period of 20 years. It is also stated that the power purchaser must buy all electricity generated from wind power projects which meet the eligibility criteria indicated in this Decision. Even though the first important step had been initiated via the Decision 37 and other relevant Circulars, until now, little development has been taken place.
The permitting procedures for energy projects are relatively complex and can act as a disincentive for potential investors. To mitigate these disincentives, Wind Investment Guidelines Vol. The following figure summarizes the wind power project development process and shows where agreements with Vietnamese authorities are required.
GE has invested in a new factory located in Hai Phong city to manufacture wind turbine components to help support the global demand for GE's wind turbines. Towers are available locally. As of July there have been three manufacturers of wind towers in Vietnam. CS Wind South Korea is currently the largest producer. Almost all its towers are exported. Asia Petroleum Energy Corporation is a producer, whole- sale supplier, exporter and importer of wind power equipment.
Their services include construction, engineering and project development for clean energy. The institutional framework is dominated by governmental organizations and state owned enterprises. For private companies the exploitation of wind energy in Vietnam is perceived as risky as it is still an emerging market.
However, for long-term investments Vietnam shows potentials. As mentioned above, a few support mechanisms are put in place to facilitate the development of wind power plants. The incentives are evidence for the acknowledgement of the Vietnamese governmet to further increase wind energy capacities.
As from a technical perspective the Vietnamese grid and power distribution topology allows for more implemented wind power plants as it is today or as it is planned in the revised Power Development Plan VII. The GIZ project Support to the Up-Scaling of Wind Power in Vietnam is aiding to improve the structural conditions and has issued wind development guidelines for that matter.
The technical and investment requirements associated with these systems are extremely different to those associated with large scale grid connected wind farms. The EAEF project aims to promote wind energy development and facilitate investments in wind energy projects in Vietnam through feasibility assessments and capacity building. There are currently no manufacturers of large scale wind turbines in Vietnam. However, CS Wind Vietnam Co  a Korean manufacturer of small scale wind turbines and towers, established its first wind tower factory in Vietnam and is now recognized as one of the leading wind tower manufacturers in the country.
Officials from the Vietnam Energy Institute VEI , speaking at an internal meeting in July, said the country could cancel at least half of its planned new coal-fired power plant generation capacity this decade. The group said as many as seven planned coal projects could be canceled, with another six postponed past The Institute for Energy Economics and Financial Analysis, along with the Green Innovation and Development Centre environmental group, in mid-July said that with lower prices for renewable energy, and the challenge of obtaining financing for coal projects, it was not likely any of the 13 projects would be revived once they were withdrawn.
Aboitiz Power, a Filipino company, bought the The first phase of three wind turbines at Dam Nai was commissioned in late , and a second phase of 12 turbines was commissioned in late Vietnam is making foreign investment in its energy infrastructure a priority in order to rapidly increase its power generation capacity.
Courtesy: The Blue Circle. SGRE already has built three wind farms in Vietnam, with seven more under construction.