Coal-fired power developers find it increasingly difficult to find capital amid the growing support of renewable energy globally.

The number of wind power projects recognized for Commercial Operation Date (COD) is still small, which is a warning sign for wind power investors in Vietnam.

Investors have been working frantically to get their projects finished on time, but even if they can put plants into operation before October 31, they will still face other problems.

Twenty-four wind power plants with a combined capacity of 963 MW began commercial operations in the year to August, according to the Vietnam Electricity Group (EVN).

Many offshore wind power investors are holding their breath waiting for the next move of the Ministry of Industry and Trade and the Government.

Since many wind power projects may not be put into commercial operation prior to October 31, the Prime Minister and Ministry of Investment and Trade have been asked to extend the feed in tariff (FIT) application.

Several wind power projects currently under development in the Mekong River Delta area are rushing to complete and start operating on a commercial basis before the November deadline,

A total of 106 wind power plants nationwide with a combined capacity of more than 5,655 MW have registered to conduct commercial operations and join the national grid, according to Vietnam Electricity (EVN).

The government this month requested the Ministry of Industry and Trade to review and re-submit the Power Development Plan VIII as the scheme is geared towards speeding up establishment of a competitive electricity market.

Many large corporations want to develop offshore wind power projects in Vietnam, but existing bottlenecks have made them hesitant to proceed.

Despite Vietnam’s huge potential, by the end of 2020, wind power accounted for less than 1 per cent (or 670MW) of the nation’s total installed capacity.

Vietnam has a globally relevant offshore wind resource, enabling it to generate 30% of total national electricity by 2050.

Vietnam, a global phenomenon in renewable energy development, has risen to the top of the region in terms of renewable energy, particularly solar power, in a short period of time. 

Vietnam’s total output of electricity from renewable energies hit 9.5 billion kWh in the first four months of 2021, up 156.9% year-on-year, and accounting for 11.8 percent of the total electricity output, according to Vietnam Electricity.

A number of wind power projects are facing difficulties as taxation agencies have stopped VAT refunds.

Wind and solar power are sustainable energy sources that are prioritized for development.

Reducing the cost of capital for offshore wind power projects in Vietnam will be the main driver for lowering electricity costs and encouraging investment in such projects, 

The Feed in Tariff (FIT) price of VND2,000 per kwh will expire in seven months, but the price for the next period has not been fixed yet.

Wind and solar power continues to be prioritized but solutions are needed to ensure the safety of the electricity system when operating volatile sources of energy.

Wind power developers, who are running against time to put their projects into operation prior to November 2021, now face another problem: they may not get a VAT (value added tax) refund because of certain regulations.