Germany help Vietnam develop wind power investment guidelines

The workshop is facilitated by the MOIT/GIZ Energy Support Programme under the German Technical Development Cooperation project ”Support to the Up-Scaling of Wind Power” (DKTI Wind Project) in order to assist the Vietnamese Government to develop and utilise wind energy for socio-economic development.

The project with a total budget of EUR6.900.000 is commissioned by the Federal Ministry of Economic Development and Cooperation (BMZ) under the German Climate Technology Initiative (DKTI).

The Validation Workshop on ”Wind Power Investment Guidelines” targets senior officials from relevant Ministries such as Ministry of Industry and Trade, Ministry of Planning and Investment and relevant provincial departments of Southern provinces including Department of Natural Resources and Environment, Department of Planning and Investment, Department of Industry and Trade as well as the private sector. 

The purpose of the Validation Workshop is to present a first version of the study on Wind Power Investment Guidelines to the private as well as public sector.

Aiming at getting a deeper understanding of the wind power project development phases and at collecting as much feedback as possible from various stakeholders regarding the investment process, the workshop also involves working groups for the different project phases.

On behalf of the Ministry of Industry and Trade (MOIT) and its General Directorate for Energy (GDE), the GIZ has been working in close cooperation with the Clean Technology Innovation Private Finance Advisory Network (CTI PFAN) on the “Wind Power Investment Guidelines for Project Development (Volume 1) and Project Financing (Volume 2)”.

The guidelines aim to provide more transparency and clarity on the different development phases of a wind project in Vietnam from the administrative perspective, and to bring clarity on the different financing possibilities and schemes for wind power under the current regulatory framework but also provide an opportunity for public authorities at provincial level to gain a good understanding of the process.

With more than 3,000 kilometres of coastline and its location in the monsoon climate zone, Vietnam has some of the best potentials for wind power in Southeast Asia. Over 2,600 square kilometres have an annual average wind speed above 6 m/s at 80 m above ground level. Estimations from an existing 2011 wind atlas cite around 24 GW of potential.

According to the revised Power Development Plan (PDP) VII, the installed capacity of wind power shall be raised to 800 MW by 2020 and 6,000 MW by 2030. Despite the promising wind resource, only 114 MW of wind power are operational due to a number of regulatory and market barriers as well as capacity needs that need to be overcome.