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VN needs to revise windpower laws: experts

By VietnamPlus   April 5, 2016 | 05:26 pm PT
VN needs to revise windpower laws: experts
Vietnam Electricity (EVN), the coutry's sole retail power supplier, is expected to follow more straightforward procedures for small wind power projects, extend validity for investment and generation licences and adopt stricter performance standards on power purchasing, said energy experts at a workshop on “Wind Power Investment Guidelines” last Friday in Ho Chi Minh City.

The aim of the workshop was to discuss opportunities for wind power development.

Aurelien Agut, a consultant from Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, said that interest to invest in small wind turbines was strong, but there were no clear regulations on the import of small turbines as well as on relevant procedures.

In addition, the timeline of three years for the Decision on Investment is too short and could create risks and unnecessary additional adjustments in administration, leading to more work for authorities as well as the project developer, he said.

“The generation licence has a validity of 10 years,” Agut said. “However, the standard lifetime of a wind farm is 20 years. This brings regulatory risk for wind farm developers.”

Agut pointed out several problems in the current Standard Power Purchase Agreement from EVN, including dispatch risk, foreign exchange, and changes in law and tax.

Agut also pointed out that the regulation on decommissioning at the end of the life time of the project was not clearly defined.

The workshop presented the wind power project development phases and a first version of the study on Wind Power Investment Guidelines to the private as well as public sector.

GIZ has been working in close cooperation with the Clean Technology Innovation Private Finance Advisory Network on “Wind Power Investment Guidelines for Project Development and Project Financing”.

The guidelines are expected to provide more transparency and clarity on the different development phases of a wind project in Việt Nam.

They are also expected to bring clarity on the different financing possibilities and schemes for wind power under the current regulatory framework, and provide an opportunity for public authorities at the provincial level to understand the process.

The workshop is to assist the Vietnamese Government to develop and utilise wind energy for socio-economic development.

The project, with a total budget of EUR6.9 million, was carried out by the Federal Ministry of Economic Development and Cooperation (BMZ) under the German Climate Technology Initiative.

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