Vietnam’s Wind Power Tariffs Attractive, but Grid Capacity a Major Concern

Vietnam’s new feed-in tariffs are attracting great interest in wind power, but investors are concerned about grid connection and purchase agreements.

The new feed-in tariffs (FIT) are expected to be attractive to domestic and foreign investors, Tommaso Rovatti Studihard, South East Asia sales director for wind power developer Vestas Asia Pacific, told VnExpress International.

The government recently approved tariff revisions under Decision 39 on support mechanisms for the development of wind power.

A Late Start: Renewable Energy Development In Vietnam

Vietnam is located on the Indochina peninsula in Southeast Asia. The country’s total length is 1,650 kilometers from the northernmost point to the southernmost point. Vietnam has a diverse topography consisting of hills, mountains, deltas, coastline, and continental shelf. The topography is lower from the Northwest to the Southeast. There are two major deltas with fertile arable land in Vietnam; the 16,700 sq km Red River Delta, locally known as the Northern Delta, and the 40,000 sq km Mekong River Delta, or the Southern Delta. The country has a long coastline of 3,260 km, running from Mong Cai in the North to Ha Tien in the Southwest.