Vietnam approves
higher FIT for wind
Fishermen working
near Vietnams
first wind farm,
the 99.2MW Bac
Lieu facility, in the
southern province
of the same name
ANDREW LEE
V
ietnams government has
signed off an increase to
the countrys wind power
feed-in tariff (FIT), in a bid to
spur higher levels of development
in one of the sectors most
promising markets that remains
largely untapped.
The countrys Prime Minister
approved an increase from the
previous flat-rate FIT equivalent
to $0.078/kWh to a new level
of $0.085/kWh for onshore
projects and $0.098/kWh for
offshore wind, said the Vietnam
office of legal firm Baker
McKenzie in a note to clients.
The new 20-year FIT is open to
projects commencing commercial
operations before 1 November
2021, it added. After that date, the
Prime Minister has instructed the
countrys Ministry of Industry and
Trade (MOIT) to study options
for moving to an auction-based
mechanism.
The FIT level was seen as one
of the obstacles preventing full
lift-off of the wind power sector in
Vietnam, which has just 189MW
in place towards an official target
of 800MW by 2020 and 7GW by
2030.
The Global Wind Energy Council
(GWEC) earlier this year told
Recharge it hopes the government
will also look at shoring up the
bankability of the PPAs on offer
with state utility EVN, which lack,
for example, guarantees regarding
longevity of power offtake.
Availability of grid connections
is also a potential barrier, given
the huge amount of solar power
Vietnam is planning to bring on
line.
Despite this, wind industry
players regularly put Vietnam on
their list of key emerging markets,
not least because of its excellent
wind resources.
GWEC chairman Morton
Dyrholm told Recharge previously:
If you look at the wind resource
and market condition, Vietnam
should be the first country in
line after the US and Taiwan for
offshore wind development.
Enercon, the German onshore
OEM, announced its debut in
Vietnam earlier this month, with
a deal to supply 77MW that it
expects to be the start of further
business in the country.
In the offshore wind market,
OEM MHI Vestas joined DNV
GL and regional partners in an
alliance that hopes to develop
large-scale offshore wind projects
off Vietnams southern coasts.
Russian tower JV to supply 1.8GW of Fortum-Rusnano projects
Photograph AFP/Getty
ANDREW LEE
Developer Rusnano has linked
with steel group Severstal and
Windar Renovables to produce
towers for the 1.8GW Russian
project pipeline for which Vestas
is lined up to supply turbines.
Spanish tower specialist Windar
will be the 51% major shareholder
in WRS Bashni, a joint venture set
up by the trio. Russian partners
Rusnano and Severstal will hold
24.5% each, said a statement
announcing its formation.
The JV will invest an initial
750m roubles ($10.9m) to get
WRS Bashni up and running,
producing steel towers up to 120
metres tall from a factory in the
Rostov region.
WRS Bashnis first key
customer will be the separate
partnership between Rusnano and
Finnish energy group Fortum,
which, with 1.8GW, has proved
the big early winner in Russias
initial spate of wind tenders.
Vestas has already been
named preferred supplier to the
Rusnano-Fortum pipeline, and
opened a nacelle line in Nizhny
Novgorod earlier this year, while
a blade plant is due to start
production in early 2019.
The JV partners expect the
tower operation to expand to
an output capacity of 300MW
within two years, and hope it will
account for up to half of the total
annual Russian wind market.
The tower plant will help
developers comply with Russias
stringent local-content rules.
rechargenews.com
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Vietnam approves higher FIT for wind Fishermen working near Vietnams first wind farm, the 99.2MW Bac Lieu facility, in the southern province of the same name ANDREW LEE V ietnams government has signed off an increase to the countrys wind power feed-in tariff (FIT), in a bid to spur higher levels
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