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  • Southeast Asia Poised for Wind Power Surge: 26 GW of Onshore Capacity Expected by 2030

    Southeast Asia Poised for Wind Power Surge: 26 GW of Onshore Capacity Expected by 2030

    Onshore wind capacity in Southeast Asia is set for a remarkable transformation, with projections indicating a surge to 26 gigawatts (GW) by 2030, according to Rystad Energy. This figure represents an impressive leap of 19.5 GW from the current 6.5 GW anticipated in 2024.

    Supportive Policies Fuel Expansion

    This soaring expansion is primarily driven by a combination of short-term policy initiatives, including auctions and project awards, paired with attractive feed-in tariffs (FITs). Additionally, the growing acceptance of mainland Chinese wind turbines is playing a significant role in this renaissance of onshore wind energy.

    Technological Advancements Empower Competition

    Raksit Pattanapitoon, lead renewables and power analyst for APAC at Rystad Energy, highlights that “with more mature technology, falling equipment costs, and improved performance at lower wind speeds, onshore wind is increasingly a competitive option for meeting renewable energy targets.”

    Vietnam Leads the Charge

    Currently, Vietnam stands out as the largest market in the region, despite facing some policy-induced fluctuations. It is trailed by the Philippines and Thailand in the onshore wind race. Notably, Laos has just made its entrance into this dynamic market with the commissioning of Southeast Asia’s largest wind project in August, designed specifically for power export to Vietnam.

    Learning from Regional Experiences

    Rystad emphasizes that countries such as Laos, Cambodia, and potentially Indonesia, have much to gain from the experiences of their more established neighbors like Vietnam, Thailand, and the Philippines. The experience in these countries has seen an initial rapid rollout of projects—around 4 GW in Vietnam, 1.5 GW in Thailand, and 400 MW in the Philippines—only to be followed by a frustrating drought of new developments. This stagnation occurred due to inconsistent policy frameworks, leaving Vietnam with no new construction since 2021, Thailand since 2019, and the Philippines since 2015.

    Strategies for Long-Term Success

    Looking forward, Rystad acknowledges that the long-term success of onshore wind in Southeast Asia will be contingent on several factors: consistent policies, stronger grid integration, and the establishment of local supply chains. As they aptly put it, “continued government support and collaboration within the industry are crucial to building a resilient wind market and ensuring wind energy becomes a key pillar of the region’s renewable transition.”

    Questions & Answers

    What is the projected onshore wind capacity in Southeast Asia by 2030?
    Southeast Asia’s onshore wind capacity is projected to reach 26 gigawatts (GW) by 2030, a significant increase from the current estimate of 6.5 GW in 2024.

    Which country currently leads in onshore wind energy development?
    Vietnam is currently the largest market for onshore wind energy in Southeast Asia, followed by the Philippines and Thailand.

    What factors are crucial for the long-term success of onshore wind in the region?
    Consistent government policies, improved grid integration, and the establishment of local supply chains are essential for the sustained growth of onshore wind energy in Southeast Asia.

  • Singaporean Enterprises Pave the Way for Renewable Energy Revolution Across APAC

    Singaporean Enterprises Pave the Way for Renewable Energy Revolution Across APAC

    Singapore is making significant strides in the renewable energy landscape, surpassing its regional counterparts regarding the integration of low-carbon energy sources. A recent survey by ABB’s Energy Industries division indicates that 30% of companies in Singapore source more than half of their energy from renewables, a figure that surpasses the 25% average for the Asia Pacific region.

    Looking to the future, a strong majority—82% of Singaporean firms—anticipate boosting their renewable energy consumption by more than 20% within the next five years, compared to 77% regionally. This commitment underscores a robust demand pipeline that aligns with Singapore’s decarbonisation ambitions, as noted by ABB.

    Capital Investments Fueling Energy Transition

    In a striking display of commitment, 68% of Singaporean companies plan to allocate over 10% of their capital expenditures to energy transition initiatives over the next five years. Notably, 26% of businesses expect to ramp up their investments in these efforts by more than 50% in the upcoming year, outpacing the 19% anticipated across the broader region.

    AI: The Unsung Hero of Renewable Energy

    The survey highlights artificial intelligence as a pivotal component in this energy transition, with 78% of respondents expressing confidence in its role. Companies are looking to harness AI for data-driven energy management, expedite investments in smart grid technologies, and enhance interoperability across systems.

    Leading the Charge with Solar Energy

    Importantly, solar energy is emerging as the front-runner in Singapore’s renewable push. A staggering 75% of respondents already rely on solar as a primary energy source, exceeding the 73% seen in the wider Asia Pacific region. When asked about the future, companies identified solar (60%), green hydrogen (46%), and wind (42%) as the top three game-changers for renewable energy in the next five years, showcasing a burgeoning optimism for innovative low-carbon technologies.

    As the world fixes its gaze on decarbonisation, Singapore is not just aiming for a greener future but also taking bold steps to lead the charge. It seems the city-state is not only investing in the earth but perhaps has also found a way to put the “green” back in “greenbacks.”

    Questions & Answers

    How does Singapore’s renewable energy sourcing compare to the broader Asia Pacific region?
    Singapore leads the charge with 30% of companies sourcing over half their energy from low-carbon sources, exceeding the 25% average for the Asia Pacific region.

    What percentage of companies in Singapore plan to increase their renewable energy use significantly?
    A remarkable 82% of companies in Singapore expect to boost their renewable energy consumption by more than 20% in the next five years, higher than the regional figure of 77%.

    Which renewable technologies do companies in Singapore view as the most promising for the future?
    Respondents identified solar (60%), green hydrogen (46%), and wind (42%) as the leading technologies likely to transform the renewable landscape in the next five years.

  • Global Wind Capacity Set to Soar with 170 GW Additions Expected by 2025

    Global Wind Capacity Set to Soar with 170 GW Additions Expected by 2025

    China is poised to lead an unprecedented boom in the wind energy sector, as projections indicate that the industry will install a remarkable 170 gigawatts (GW) of new capacity by the end of 2025, according to the latest report from Wood Mackenzie. This surge is not just a ripple in the energy market; it suggests a tidal wave of change, with the global wind sector expected to connect more than 70 GW in a single quarter—setting a new benchmark for quarterly additions that surpass the annual totals of any year before 2020.

    A Record-Breaking Forecast

    This fresh market outlook reveals a robust 13% quarter-on-quarter increase largely driven by significant onshore growth in China. With such momentum, global wind capacity is projected to double from 2024 levels by as early as 2032, showcasing the country’s pivotal role in this renewable energy revolution.

    Resilience Amidst Uncertain Policies

    Despite facing obstacles in key markets like the United States, the wind industry is on track to achieve historic scale in the coming decade. By 2031, without considering China’s contributions, global cumulative wind capacity is set to hit a terawatt, eventually doubling from 2024 levels by 2034. However, the journey isn’t without its challenges. Policy frameworks that historically supported wind sector growth are now injecting uncertainty into major markets—an ominous cloud that threatens to dampen the industry’s rapid ascent.

    The Dynamics of Growth in China

    Sasha Bond-Smith, a research analyst at Wood Mackenzie, highlighted the “unparalleled concentration of growth in China,” which is fundamentally reshaping the wind energy landscape. Yet, not everything is smooth sailing: the offshore wind sector in China is grappling with significant hurdles, including sea-use conflicts that profoundly disrupt project timelines and even halt construction on ongoing projects.

    Global Progress and Emerging Challenges

    On the flip side, onshore projects are advancing across Europe, the Asia-Pacific region, and emerging markets, bolstered by favorable tender outcomes and strong project pipelines. Nevertheless, the sluggish pace of the green hydrogen market still casts a long shadow, limiting the potential spillover benefits into wind development.

    “Achieving this historic scale will require the industry to adeptly navigate this new geography of growth and adapt to changing policy landscapes,” cautioned Kárys Prado, a senior research analyst at Wood Mackenzie. In the world of wind energy, flexibility may just become the most valuable currency.

    Questions & Answers

    What role is China playing in the global wind energy market?
    China is set to account for a significant portion of the wind energy expansion, with projections indicating it will install 170 GW of new capacity by the end of 2025, reshaping the industry’s dynamics.

    Are there challenges that the offshore wind sector in China is facing?
    Yes, the offshore wind sector is experiencing considerable challenges due to sea-use conflicts, which are disrupting project timelines and stopping construction on some ongoing projects.

    What factors could influence the future growth of the wind industry?
    Future growth will depend on how effectively the industry adapts to evolving policy landscapes and navigates the challenges presented by international markets, particularly as policy uncertainties become more pronounced.

  • Laos wind farms offer Vietnam 4,150 MW of electricity

    Laos wind farms offer Vietnam 4,150 MW of electricity

    According to national utility Vietnam Electricity, seven Lao wind energy plants want to sell a total of 4,150 MW to Vietnam. It will be done in phases, with 682MW supplied before 2025 and the rest gradually after that.

    Vietnam will be keen on accepting the offer.

    If the National Energy Master Plan is carried out on schedule, the central and southern regions would have enough power until 2030, but the north is likely to face shortages from 2025, especially during the dry season from May to July, EVN said.

    Importing energy from Laos would help alleviate the shortfall, it said.

    Affordability is also a factor, with wind energy from Laos currently costing 6.95 cents per kilowatt-hour compared to Vietnam’s 8.5-9.8 cents, depending on whether the plant is on land or offshore.

    Vietnam has been importing energy, mainly hydroelectricity, from Laos since 2016 through intergovernmental agreements.

    Increasing electricity purchases from neighbors is in the trade ministry’s power plans for this year.

    However, there are certain challenges.

    Electricity from Laos is expected to pass through transmission lines in Quang Tri Province, meaning the quantity of purchase will largely depend on infrastructure in this area.

    EVN’s calculations show that the proposed 4,149 MW exceeds the capacity of the local power grid.

    Most of its 200 kV and 110 kV lines operate at 80-100% of capacity. The region can only manage a maximum of 300 MW of transmission during the dry season and even less at other times.

    “Before the Lao Bao 500 kV substation is put into operation, this area [Quang Tri Province] can hardly take in more electricity from Laos because all the existing 220 kV lines are operating at high loads,” EVN said.

    Once the grid infrastructure is improved, such as with the construction of the Huong Hoa 500 kV substation and connecting lines in late 2027, Vietnam can get 2,500 MW from Laos, which will still be 1,650 MW short of the quantity it is seeking to sell.

    Furthermore, adding more renewable energy to the national grid will throw plans out if kilter. Domestic renewable energy accounted for 27% of grid capacity at the end of 2023 and is only expected to grow to 34% by 2030, according to the National Energy Master Plan.

    So, to ensure grid stability, EVN said the trade ministry should only buy a maximum of 300 MW of wind power from Laos before 2025, and only during the peak demand season.

    From 2026 to 2030 a maximum of 2,500 MW could be bought, it said.

    It also urged the government to import more hydroelectricity to increase flexibility.

    More grid infrastructure and transmission lines, including 220 kV and 500 kV dual-circuit lines from the border to the Lao Bao substation, should be added to the national master plan, it added.

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  • Vietnam probes wind towers imported from China, weighs anti-dumping tax

    Vietnam probes wind towers imported from China, weighs anti-dumping tax

    Vietnam’s industry ministry has launched an investigation that could lead to anti-dumping duties on wind towers originally from China, following a complaint by domestic producers, the government said on Saturday.

    Producers in Vietnam have claimed that dumping of Chinese-origin towers has caused “significant damage” to them, the government said in a statement, without elaborating.

    “In case of necessity, based on preliminary investigation results, the trade ministry can apply temporary anti-dumping measures to prevent dumping activities that hurt domestic manufacturing,” the statement added.

    The government gave no timeline for completing the investigation.

    Neither Vietnamese customs nor the statistics office provide data on wind tower imports.

    According to the trade ministry, local producers were proposing an anti-dumping tax rate of 97%.

    Wind towers imported to Vietnam currently enjoy a most-favored nation (MFN) tariff of 3%.

    Vietnam is looking to boost wind energy as it begins the transition to becoming carbon-neutral by mid-century, aiming for wind, most of it onshore, to account for 18.5% of the total power mix by 2030.

    The Chinese embassy in Hanoi did not immediately respond to a request for comment outside of business hours.

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  • Vietnam’s hassles in developing offshore wind power industry

    Vietnam’s hassles in developing offshore wind power industry

    Unclear regulations, low prices and an insufficient grid are hampering efforts to develop offshore wind power, experts and industry insiders have said. By 2030 offshore wind power capacity would be 7,000 megawatts (MW), envisages the Power Development Master Plan VIII for 2021-30.

    But Nguyen Thi Thanh Binh, deputy director of conglomerate T&T Group, said at a conference last week that ambiguous regulations are the biggest hurdle to achieving the government’s goal.

    “A policy framework, construction roadmap or pricing mechanism for offshore wind power plants has yet to be drawn up, and there is also a lack of specific, clear instructions.”

    Offshore wind farms usually take six to nine months before commercially operating, and so it is a huge risk for investors if the mechanism is unclear, she added.

    Bui Van Thinh, chairman of the Binh Thuan Wind and Solar Energy Association, spoke about another problem: Vietnam’s power grid.

    “The country’s grid for renewable sources is already overloaded, and so it cannot benefit from more supply.”

    Upgrading the power system to cope with the targeted load requires a huge investment, and national utility EVN has no incentive to do it as it buys renewable energy at a loss.

    Meanwhile, the newly amended Law on Electricity allows private investors to fund power grids, but lacks specific instructions for implementation.

    Last October the Ministry of Industry and Trade stopped the feed-in-tariff (FIT) incentive price for wind power projects. It is now seeking feedback on bidding mechanisms for renewable energy prices.

    But Binh warned against doing that now, saying both investors and the market would be hurt.

    “Offshore wind power is a relatively new sector in Vietnam, and some investors are considering them test runs.

    “Bidding in this case will disrupt the market, and investors may decide to forfeit them after winning bids.”

    Mark Hutchinson of the Global Wind Energy Council pointed to the fact that no country has been able to install 3,000 MW of offshore wind power through bidding in early stages.

    Citing the experiences of the UK, the Netherlands and Taiwan, he said investors need to have a buffer time before bidding starts. FIT prices could be offered for the first 4,000 MW, and the next 3,000 MW could be priced through bidding, he said. He also suggested qualification-based selection to fast-track planning and construction.

    Doan Ngoc Duong, vice chairman of the Institute of Energy (IEVN) agreed, saying many countries have adopted similar policies to incentivize investors in early phases.

    “We need a pioneering project as a pilot for choosing investors and mechanisms.”

    Too many investors

    Nguyen Thanh Huyen of the Vietnam Administration of Seas and Islands said the number of companies seeking to invest in offshore wind farms has skyrocketed.

    “Over the last year and a half 35 firms have asked to explore 41 locations to build wind farms, up from the previous three.”

    Nguyen Manh Cuong of the IEVN said 22 projects have registered in the north and 74 in the south with a total designed capacity of over 156,000 MW.

    This is much higher than the government’s target of 7,000 MW.

    In the northern province of Nam Dinh, for instance, only one project is registered, but with a capacity of 12,000 MW.

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  • Offshore wind power capacity to reach 36 GW by 2045

    Offshore wind power capacity to reach 36 GW by 2045

    Vietnam’s offshore wind power capacity will increase 36 GW by 2045, according to the latest draft of the Power Development Master Plan VIII.

    It will increase to 4 GW by 2030, 10 GW by 2035, 23 GW by 2040. Offshore wind power will account for some 2.6 percent of the total electricity generation capacity in 2030 and 10.8 percent in 2045. Offshore wind power farms will be located mainly in the north and the south of the country.

    In the previous draft of the plan, the Ministry of Industry and Trade had set a target of lifting offshore wind power capacity to 2-3 GW, or 1.5-2 percent of the total, by 2030.

    At a meeting held to discuss the latest draft Friday, Mathias Hollander, senior manager of the Global Wind Energy Council (GWEC), said Vietnam can have an offshore wind power capacity of 5-10 GW by 2030. The country’s offshore wind power generation has an efficiency of over 50 percent, similar to that of hydroelectricity, he noted.

    According to GWEC calculations, Vietnam will have to invest $10-12 billion for the first 4-5 GW of offshore power wind capacity, but the wind is an infinite source, so the country will not have to keep feeding wind power farms as it does with coal or gas-fired plants.

    Meanwhile, the unit cost for 1,000 kWh of electricity generated by an offshore wind power farm is around $83, down from $255 in 2010. It is expected to further drop to $58 by 2025.

    With a coastline of 3,260 km, low sea levels, and high wind speeds (7-10 meters per second at a height of 100 meters), Vietnam is an emerging offshore wind power magnet in Southeast Asia, experts say.

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  • Siemens Gamesa signs $400 mln wind gear agreement with Vietnam’s BCG Energy

    Siemens Gamesa signs $400 mln wind gear agreement with Vietnam’s BCG Energy

    Siemens Gamesa Renewable Energy has signed a preliminary agreement to supply wind turbine gear worth up to $400 million to Vietnam’s BCG Energy, Vietnam’s government said on Monday.

    The memorandum of understanding is part of the Vietnamese firm’s move to develop wind turbines with a capacity of over 500 megawatts, the Ministry of Industry and Trade said in a statement, adding the deal was signed on the sidelines of the United Nations COP26 summit.

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  • Wind power developers race to complete projects for incentive price

    Wind power developers race to complete projects for incentive price

    Investors in wind power projects are racing to complete construction this month to enjoy an incentive feed-in tariff, but face procedural hurdles and those caused by Covid-19.

    This month the developer of a plant in Quang Tri Province is rushing to complete construction and begin test runs, but is being slowed down by the various administrative procedures they have to go through.

    The chairman of the investing company, who asked not be identified, said the plant needs to operate at least 70 percent of capacity, which means when the wind is weak this cannot be done.

    “We made much effort but the test depends on the weather.”

    To encourage renewable energy, Vietnam will give wind power projects that begin operation before Nov. 1 a feed-in tariff of 9.8 U.S. cents per kilowatt-hour to offshore projects and 8.5 U.S. cents for onshore ones. The tariff lasts 20 years.

    But of the 106 wind power farms that have registered to provide 5,655.5 megawatts of power, there were only six that have received an operational permit by the end of last month.

    Developers complain about the large number of permits they need to acquire to start the project, for example, the fire safety permit, and there are many unexpected challenges that lie ahead in getting these permits.

    “We won’t be relaxed until the final permit is given, as from now until it is difficult to anticipate what will come up,” the chairman in Quang Tri said.

    He proposed that the Department of Planning and Investment in the province increase the work hours of its employees, even at night, to support developers in acquiring permits. Several challenges contributed to a construction delay.

    Some developers said that the fourth Covid-19 wave slowed their projects by two months, as experts were unable to enter the country, while the transportation of equipment faced blockages as authorities tightened social distancing.

    Hoang Ngoc Quy, CEO of a developer HBRE, has been letting workers take three shifts to work 24 hours a day in the last three days.

    He proposed that the government provides incentive policies, especially in loans, to support wind power farms.

    The best support to extend the deadline until December next year for onshore projects and December 2025 for offshore projects.

    Vu Chi Mai, head of component for renewable energy and energy efficiency at the German Agency for International Cooperation (GIZ), said that Covid-19 caused unexpected impacts on the projects, and therefore the deadline should be pushed back three to six months.

    Ha Dang Son, deputy director of the Vietnam Low Emission Energy Program, said that the extended deadline should be given to certain projects depending how severe the Covid-19 impact was, not to all projects, as some have not even started.

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  • Wind power developers in central province rush construction to get incentive tariff

    Wind power developers in central province rush construction to get incentive tariff

    Wind power farms in the central province of Quang Tri are scrambling to complete construction to benefit from the 20-year incentive feed-in tariff available until October 31.

    Under the scorching sun 800 workers are quickly building a solar plant in Huong Hoa District, hoping to finish the work before the rains begin next month.

    Tai Tam – Hoang Hai will have 31 turbines, and the foundations have been completed for more than 20 of them. Five turbines are being installed, and the investors hope the farm will become operational by the end of October.

    Then it will be eligible for the incentive feed-in tariff of 9.8 U.S. cents per kilowatt-hour for offshore projects and 8.5 cents for onshore.

    Nguyen Van Nghi, deputy director of the project, said some households have built tall structures nearby hoping to get compensation to make way for the giant turbines.

    “We need to speed up transportation to complete the project by the end of October, but if we do not pay high compensation local residents refuse to let us transport the equipment through their land.

    So far around VND200 billion has been paid as compensation. The company is seeking help from authorities to get locals to remove their structures.

    At two other wind power plants nearby, Phong Huy and Phong Nguyen, the foundations are complete but only four out of 24 towers have been built.

    Nguyen Ngoc Tien, CEO of the projects, said he has increased the number of workers and even transports materials at night to finish the projects before the deadline.

    It would take five to six weeks to finish, he added.

    After that foreign experts will make any adjustments necessary before the plants can begin operations.

    But with travel restrictions causing delays, wind power plant developers want Quang Tri authorities to allow experts to quarantine on-site upon arrival and start working immediately.

    Quang Tri has 29 wind farms under construction with a total capacity of 1,117 megawatts and costing over VND30 trillion.

    It is estimated that 16 of them will become operational before October 3.

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  • Laos to supply Vietnam power from Mitsubishi-built wind farm

    Laos to supply Vietnam power from Mitsubishi-built wind farm

    Japan’s Mitsubishi Corporation will develop Southeast Asia’s largest wind farm in Laos to supply electricity to Vietnam, where demand is expected to grow continuously.

    The 600-megawatt onshore project, the first wind farm in Laos, will be located in the southern provinces of Sekong and Attapeu, the company said in a statement.

    By installing a dedicated transmission line to Vietnam, power from the wind farm, which is set to begin commercial operations by 2023, will be sold to national utility Vietnam Electricity for 25 years.

    It is expected that Vietnam’s growing economy will have high demand for power, especially during the dry season, when hydropower generation is limited.

    The onshore wind farm is being developed as part of a memorandum of understanding on power interchange signed between the Vietnamese and Lao governments in October 2016.

    It is expected to be the first cross-border electricity interchange from wind power generation in Southeast Asia.

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  • Electrical equipment maker to hike capital to fund wind power

    Electrical equipment maker to hike capital to fund wind power

    Shareholders of electrical equipment producer Gelex have green-lighted an 81 percent increase in its capital to VND7.8 trillion ($338 million) to fund wind power plants and hotels.

    The Hanoi-based company, known for its electric cable brand Cadivi, will issue nearly 293 million shares to existing shareholders early next year at a rate of six new shares for every 10 held.

    The issue will be priced at VND12,000, nearly 50 percent lower than the closing price on Wednesday.

    The company said it hopes to raise VND3.5 trillion from the issuance, of which it plans to spend two-thirds on building several wind power plants in the central province of Quang Tri and a mixed-use commercial building in Hanoi in 2023.

    The rest of the money will be used on bolster working capital.

    Gelex forecasts pre-tax profits to fall by 10 percent this year to VND975 billion.

  • German firm hopes to build $1.5 bln offshore wind farm in Vietnam

    German firm hopes to build $1.5 bln offshore wind farm in Vietnam

    Binh Dinh Province has given approval to a German company to study the possibility of building the country’s second offshore wind power plant. PNG AG will carry out a year-long study for a $1.5-billion wind power plant in the districts of Phu Cat and Phu My.

    The company, which has over 20 years of experience in renewable energy, had earlier proposed building a 500-700-MW power plant in the province, its first project in the country.

    The first offshore wind power plant, the 99MW Bac Lieu Wind Power Project in the southern province of the same name, went on stream in 2016.

    It is expected that in 2021-30, for which period the national plan is being drafted, the country will need 30 GW of wind and solar power.

    There are 11 wind farms in the country with a total capacity of 429 MW, according to Vietnam Electricity (EVN).

  • Wind projects offer promising future

    Wind projects offer promising future

    With growing innovation in the sector, experts and investors note that wind power projects in Vietnam will be feasible with an 8-9 US cent per kWh feed-in-tariff.

    Vu Chi Mai, senior project officer at Geman Technical Cooperation (GIZ), highlighted at a wind power forum hosted by the Asia Wind Energy Association last week that experts are now more optimistic regarding the foreseeable cost reductions in the industry.

    The newfound optimism, Mai noted, may be coming as a result of technological advancements that have yet to be implemented.

    The forthcoming advances suggest that wind energy is not as mature a technology as was previously thought, Mai added.

    “Wind power technology and its advancing development is cutting costs and time for developers,” Mai said, highlighting that developers see a 9 US cent feed-in-tariff (FiT) as bankable.

    Late last year, GIZ sent a proposal to the government stating that the best way to make projects feasible is to offer a FiT of 10.4 US cents.

    Mai explained that per request from the Ministry of Industry and Trade (MoIT) to get the real cost of wind production in Vietnam, GIZ has conducted a study which has been based on the operational costs of the three existing wind farms in Vietnam (the first wind farm has been operational since 2011).

    A bankable FIT of 10.4 US cents per kWh has been then suggested so that the government target of 800 megawatts by 2020 could be reached.

    William Gaillard, regional sales director at Gamesa Siemens – the exclusive supplier for the 40MW Dam Nai  project in the central province of Ninh Thuan, said that “Now you can have profitable wind projects that few years before was not possible, thanks to larger rotor size and bigger generator, but also larger volumes and economies of scale from our side.

    Also other suppliers need to make some efforts. Balance of plant like civil and electrical works also need to drive cost down.” Gaillard added that even current of 7.8 cents can make projects bankable.

    He pointed out that in Vietnam there is very little experience and so risks are high and contractors expect high margins. But the key issues is to get a bankable power purchase agreement (PPA), according to international standards.

    Olivier Duguet, CEO of The Blue Circle – developer of the Dam Nai project, and the first foreign-backed wind power project in Vietnam – told VIR that “the current FiT is perfectly suitable for 2,000MW wind projects in Vietnam.”

    Duguet said focusing on the FiT is the wrong approach. Investors should instead be focusing on conditions that attract long-term debt financing for projects in Vietnam, as this is the only way to develop wind power within the country. Only the very best projects in terms of wind resources and installation costs will be financially viable in the current environment, he added.

    A representative of NRG Systems GmbH noted the wind power industry in Asia is experiencing strong growth, and emerging economies in the region continue to invest heavily in it.

    According to MoIT, Vietnam’s power industry has been facing many challenges around the shortage of energy sources.

    The Vietnamese government has approved several programmes to encourage the development of renewable energy in the country, including the Renewable Energy Development Strategy to 2030, with a vision to 2050.

    The strategy aims to increase the production of electricity from wind sources to 2.5 billion kilowatts by 2020, 16 billion kilowatts by 2030.

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  • Indonesia-Denmark launch wind power map

    Indonesia-Denmark launch wind power map

    The Energy and Mineral Resources Ministry and Denmark’s Development Cooperation Ministry launched on Tuesday a map pinpointing the wind power potential for electrification in Indonesia.

    Denmark Development Cooperation Minister Ulla Tørnæs said this was part of a six-month cooperative engagement between the two governments, during which they exchanged their experiences in developing renewable energy sources for electrification.

    “Today, we are launching a new wind map that shows the vast potential for utilizing wind in Indonesia,” Tørnæs said in her opening speech at the Energy and Mineral Resources Ministry in Central Jakarta on Tuesday.

    “A number of visits to Denmark by Indonesian officials over the past six months has deepened the discussion and insight into waste-to-energy solutions, the use of biomass and how to accommodate fluctuating markets.”

    The map displays the hot spots for wind power potential in Indonesia. It is expected to help the government and investors decide the best locations to develop wind turbines.

    The map was also launched alongside a book titled Integration of Wind Energy in Power Systems, which will serve as a guide for policymaking and the integration of electricity into state-owned electricity firm PLN’s existing system. The book was written based on Denmark’s experiences in wind power development.

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