Winds of change need to push wind power sector

Vietnam has great potential for renewable sources throughout the country. The Vietnamese government is giving greater attention to wind energy projects as part of a solution to the country’s current energy shortage. These sources of renewable energy will partially meet Vietnam’s increasing energy demand.

Wind potential is greater in Vietnam compared to other countries in the region. According to the World Bank’s wind studies for four countries in the South East Asian region in 2001, Vietnam had the greatest wind potential compared to its neighbouring countries such as Laos, Cambodia and Thailand. There are increasing interest and new projects in wind energy from Vietnamese and foreign investors.

At the German-Vietnamese Business Conference taking place on September 19, 2012 in Ho Chi Minh City, the German Federal Minister of Economics and Technology, Dr. Philipp Roesler, Vietnam’s Minister of Industry and Trade Vu Huy Hoang and delegates had discussions on business relationship and economic co-operation between Germany and Vietnam.

Roesler affirmed, “Germany is willing to transfer its expertise on renewable energy to Vietnam.” According to the German minister, Germany had great expertise in the renewable energy field as renewable energy accounts for 20-25 per cent of total energy supply in Germany.

Understanding Vietnam’s determination to increase its renewable energy supply and consumption, Germany will  prioritise working with Vietnam in this field with an emphasis on Vietnam’s economic restructuring toward a sustainable economic growth, greater competitiveness and higher production efficiency.

Germany is a leader in technological development in Europe, especially clean energy technology and extensive management experience. Germany presents valuable resources to Vietnam’s economic modernisation and sustainable growth with advanced yet friendly technology.

Although the Vietnamese government has issued several investment policies and incentives, more transparent policies and mechanisms are needed to attract greater investment into Vietnam. The current wind energy project development has only tapped into a small portion of Vietnam’s wind potential.

Some of the reasons for the wind energy project development delay are the lack of policies and mechanisms for wind power selling and purchasing schemes, a lack of consistency and transparency between local and governmental regulatory authorities and weak management and technical competency for a wind energy project development.

The greatest barrier to investment in wind energy projects is the low power purchasing price. The current cost of electricity generated from wind power plants is still quite high due to large technical investment. Until the purchasing price is higher, investment from the private sector into wind energy project is expected to be low.