HANOI, September 30 (Reuters) – Vietnam will stick to its plan to end its offer of a fixed feed-in tariff for wind power (FiT) in November, the government said Thursday, despite calls from developers to extend it due to delays caused by the coronavirus in their projects.
Vietnam was looking to more than double its power generation capacity over the next decade with a focus on renewables. In 2018, he set the FiT at 8.5 cents / kWh for wind projects that could become operational before November 1 of this year.
The World Wind Energy Council (GWEC), which represents the developers, in a statement released earlier this month, asked the government postpone the FiT deadline from six months to April of next year due to delays related to the pandemic.
The Ministry of Industry and Trade will switch to a new mechanism to set prices for wind power through a competitive bidding process.
“Switching from a fixed price mechanism to a tendering mechanism is the global trend and is in line with the Vietnamese legal system,” said Hoang Tien Dung, head of the ministry’s electricity and renewable energy department. , in the press release.
In an email interview with Reuters earlier this month, William Gaillard, Asia-Pacific vice president of sales for wind turbine supplier Vestas, said that without the FiT, projects face a enormous uncertainty about their future income, even a risk of default in their project financing. terms.
“Faced with a significant risk on renewable investments and jobs, future investors will shy away from the market and Vietnam will not have the booming wind energy sector that we have seen in recent years,” said Gaillard. in the interview.
(Edited by Martin Petty)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.