The proposed new feed-in tariff (FIT), included in an official letter from the Ministry of Industry and Trade (MOIT) last October, will be 7.02 US cents per kWh for onshore wind and 8.47 US cents for inter-tidal/nearshore wind, applicable to projects commissioned from November this year. This represents a cut of more than 17 per cent.
However, for most market participants, it is no surprise that a lower FIT is being considered, according to according to Mr Henri Wasnick, GIZ’s Senior Advisor to the Renewable Energy Center of the Institute of Energy at MOIT.
In an interview with Vietnam Economic Times (VET) magazine, he said, “The FIT is not the only decisive factor for project due diligence or for projects in operation. Bankable Power Purchase Agreements (PPAs), project due diligence, clear administrative procedures, the political landscape, and so on are also taken into account.”
“The reason why many projects currently haven’t found an investor is not the new FIT, it is because project quality is simply not good enough,” he added. He suggested it is also necessary to consider that current implementation cycles, which are under discussion, are still too short for many large-scale projects.
Mr Henri is working as a seconded Senior Advisor to the Renewable Energy Center of the Institute of Energy/MOIT, as part of Germany’s technical cooperation in the priority area of sustainable energy.
Read Mr Henri and other experts’ opinions in the article: https://www.gizenergy.org.vn/…/moving-towards-completion
