A proposal to increase the price of wind power has been submitted to the government by the Ministry of Industry and Trade (MoIT), to encourage investment in this type of energy.

The purchase price is proposed to increase to 8.77 US cents per kWh on land and 9.97 US cents per kWh at sea, applicable until the end of 2020.

“The proposed price has been calculated on the basis of international experience, technology, and price,” the ministry stated. “This price encourages the use of modern turbines of international standard for greater efficiency.”

Vietnam targets 800 MW of wind power by 2020 and 6,000 MW by 2030, under the National Power Development Master Plan. The share of wind power in total national electricity supply is to be 0.7 per cent by 2020 and 2.4 per cent by 2030. Eighty per cent will be generated on land and 20 per cent at sea.

The purchase price for wind power from land-based projects under Decision No. 37/2011/QD-TTg is currently 7.8 US cents per kWh

Vietnam has major potential to develop wind power. The areas of greatest potential are the south-central coast, the central highlands, and the Mekong Delta, with some 24 GW. By way of comparison, Southeast Asia’s largest hydro-power plant, Son La in Vietnam’s north, has an installed capacity of 2.4GW, according to the World Bank wind atlas in 2011.  

Five wind farms with total capacity of almost 200 MW are now in operation, with the first four connected to the national grid. REVN, the first, with a capacity of 30MW, is located in south-central Binh Thuan province. Cong Ly, producing 99.2 MW, is a nearshore project in the Mekong Delta’s Bac Lieu province. Phu Lac, with 24 MW is also in Binh Thuan province, while Huong Linh, in central Quang Tri province, has 30MW, and a diesel-wind hybrid project of 6 MW is on Phu Quy Island in Binh Thuan.