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New wind power projects may miss generation deadline

Released at: 15:15, 18/08/2021

New wind power projects may miss generation deadline

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Projects struggling to start generating electricity on schedule to access preferential prices.

by Phuong Hoa

According to figures from Electricity of Vietnam (EVN), it has signed power purchase and sale contracts with some 130 wind power projects throughout the country. Only 21 of these, with a total capacity of 819 MW, have been put into commercial operation. The remainder is still under construction and will be completed in the near future.

However, under Decision No. 39/2018/QD-TTg from the Prime Minister, only projects that commercially generate before November 1, 2021 can enjoy the preferential price for 20 years, starting from the date of commercial generation.

Reasons for delays are multitude, such as site clearance, natural disasters, and, especially, the Covid-19 pandemic, with localities implementing social distancing measures under Directive No. 16.

Faced with these obstacles, many investors in wind power projects around the country, such as in Binh Thuan, Gia Lai, Soc Trang, Tra Vinh, Lam Dong, Bac Lieu, and Ca Mau provinces, are taking every possible step to finish construction in order to enjoy the preferential price under Decision No. 39. In the current circumstances, however, this is a very difficult task and is perhaps even impossible.

The Vietnam Clean Energy Association (VCEA) and the People’s Committees of provinces with wind power projects have therefore proposed to the government, the Prime Minister, the Ministry of Industry and Trade, EVN, and relevant ministries and branches that the commercial power generation time be extended by 3-6 months for projects being implemented under Decision No. 39, to avoid bankruptcies.

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