About the market
Vietnam, where renewable power are poised for a significant rise and with 4.4GW solar power successfully installed by the end of June, 2019 and wind power planning to hit 2GW by 2025, 6GW by 2030, is one of the hottest destinations for renewable energy investment in Asia Pacific.
On September 10, 2018, the Prime Minister of Vietnam approved the amendment and revision of the wind power tariffs as per Decision No. 37/2011/QD-TTg issued on support mechanisms for the development of wind power projects in Vietnam. Under the revision, the FIT for wind power projects will be increased to 8.5 US cents/ kWh for onshore and 9.8 US cents/kWh for offshore/nearshore respectively, the new FiTs are in effect since 1 November 2018 and will be applicable for projects that commence operations before 1 November 2021, which made the investors and developers turn back and rush into the wind market again.
According to the master development milestone for wind power sector and comparison with the solar development in Vietnam, given it also takes time to complete the signing of PPA, reach financial closure and commence construction, we anticipated that Q1/Q2 of 2020 will be the golden time for deal making. In addition, with the Revision of Planning Law to be unveiled very soon, more than 10GW of wind projects will moving forward again. Meanwhile, following the Circular No. 02 updated guidelines (requirements for wind measurement and met mast), more qualified new projects will be unveiled next year with nearly one-year data of IEC compliant met mast, ensuring the authenticity and stability of the project development. It is time that both local and international players shall join hands to seek the opportunities and tackle the challenges ahead of the industry.
On the other hand, after Vietnam’s solar boom phase, solar development has experienced a stagnation period due to the policy gap. Under the most recent version of New Draft Decision, projects that do not meet FiT deadline will face a definite transition to auction scheme, which is currently under formulation and implementation by EVN and MOIT. As for now, around 500MW solar projects are still under construction. In addition, solar market in Vietnam remains 2.5GW capacity under development with PPA-signed; and exceeding 2GW projects has obtained the grid connection permission by EVN. Therefore, we anticipate that the solar market in Vietnam will still with 1GW annual growth in the short-term, but the market players have to prepare adequately for the transition from FiT to auction scheme.
To further push forward the renewable power development in Vietnam and facilitate the collaboration between local and international, Neoventure Corporation is planning the ninth RE series event in Vietnam – 3rd Vietnam Renewable Energy Summit 2020 (3rd VRES 2020), which will be scheduled at Melia Hotel, Hanoi Vietnam on 10-11 March 2020, the Summit will combine with Large Exhibition, Conference, Parallel Session for both wind and solar, Project Match-Making Forum creating a one-stop business matching platform for all industry players to share their knowledge and to expand business contacts in Vietnam’s rapid growing renewable energy market. With Neoventure’s deep digging in Vietnam’s RE sector, 3rd Vietnam Renewable Energy Summit 2020 will match you with the most qualified participants in the region with real decision power in hand.
We do look forward to seeing you in Hanoi this March!