The Ministry of Industry and Trade (MoIT) has called for more solar power producers in Vietnam to enjoy fixed feed-in-tariffs (FIT) instead of a bidding mechanism.
The ignition of interest in renewables has indicated the potential for rapid development under effective policies and current market conditions, but ambitions to expand renewable energy generation further will be constrained by the barriers in attracting private sector investment.
After months of uncertainty over the policy, the much awaited next round of purchase prices in solar power may be set through auction instead of enjoying the same feed-in tariff required elsewhere. The auction method may set the country up for greater clarity and fewer investor risks in the sector.
Despite bankability concerns in power purchase agreements, investing in solar power is a new boom in Vietnam as developers, original equipment manufacturers, and contractors rush into the market thanks to the current feed-in tariff.
Commercial banks are rushing to provide loans for green energy projects amid a wave of investment in the growing industry, dubbed a landmark for the country’s renewable energy outlook.
The Government has recently decided to increase price of wind power to encourage the development of this energy after eight years imposing the Feed in Tariff (Fit) of 7.8 US cent/kWh, which is said to be too low for investors to overcome perceived risks.
General Electric Renewable Energy is known as the world’s leading supplier of wind turbines, with a diversified portfolio of onshore and offshore turbines and the latest technology to foster wind power development.
Foreign investors have shown a large appetite for wind power projects in Vietnam. However, in order to spur investment in the sector, there must be a more attractive tariff regime.
(VOV) - A seminar was held in Ghent, Belgium’s East Flanders region on September 10 to promote investment in Vietnam under the framework of the Accenta International Trade Fair 2014.