Vietnam set to extend Feed-in-Tariff

This week, the Prime Minister of Vietnam supported extending the funding mechanism for wind energy projects, responding to industry demand.

Document No. 693 adds several projects to the Power Developement Plan, and directs the Ministry of Industry and Trade (MOIT) to accelerate the approval process and prepare a new Power Development Plan for the period to 2030, with a vision to 2045, which must be submitted by 31st October this year.

The key matter here is the Prime Minister’s support for extending the feed-in-tariff (FiT) for wind projects beyond next year. The current FiT rate of 8.5 UScent/kWh (onshore) and 9.8 UScent/kWh (offshore) applies to projects with commercial operations dates before 1st November 2021, and these are expected to be extended until 31st December 2023. After 2023, an auction system is likely to be introduced, similar to that being considered for solar power in Vietnam.

With many projects behind schedule and having failed to reach financial close, industry has provided mounting pressure on MOIT and the Prime Minister to extend the FiT.

For more information on offshore wind farms worldwide, click here.