Germany looks to leverage wind energy expertise in Vietnam

09:30 | 16/11/2018 Industry

(VEN) - The German Industry and Commerce Vietnam (GIC/AHK Vietnam) recently organized a conference on “Wind Energy in Vietnam” in Ho Chi Minh City.

germany looks to leverage wind energy expertise in vietnam

The conference was held during a five-day (Nov 5-9) visit to Vietnam by a delegation of German wind energy firms. The event was a good opportunity for German businesses to learn more about renewable energy development trends in Vietnam, and to share information about their knowledge and expertise with potential local partners.

While Vietnamese experts spoke about the legal framework and other requirements concerning wind energy generation in Vietnam, German experts and delegation representatives provided insights and testimonials about their operations, expertise, products and services.

The presenters at the conference included representatives of Ammonit Measurement GmbH; BayWa r.e Wind GmbH; Geo-Net Umweltconsulting GmbH; VSB Holding GmbH; and zWe Projekt GmbH.

Berthold Breid, CEO, Renewables Academy (Germany), noted that offshore wind farms have gained prominence in recent years. “Wind power has become the largest renewable source of electricity. There are ambitious plans for expanding offshore wind to 15GW by 2020. Reliability, affordability and environmental protection are interlinked and the ultimate objectives of the Energiewende (Energy Transition) and German energy policy,” he said.

Sabine Schmedding, Policy Department, German Wind Energy Association, spoke about the status and development of wind energy in Germany. She said that in 2017, the investment in onshore wind energy was 7.77 million euros, and 3.24 million euros for offshore. The outlook for this industry is one of very great potential, as it will cover the health, industry and mobility sectors, she said. “Converting renewable electricity into heat/cooling, mobolity or gas (power-to-gas) is the most important project in the EU energy market,” she added.

germany looks to leverage wind energy expertise in vietnam

German businesses are well-known as leading suppliers in the field of wind power with advance hi-tech capabilities and good services, and they can become reliable partners for Vietnam. Meanwhile, Vietnam was a potential destination to develop wind energy in the future, attracting the interest of many foreign investors in general and German companies in particular in recent years.

Vu Chi Mai, Senior Project officer of a GIZ Project to support the upscaling of wind power in Vietnam, said the country aims to generate 800 MW of wind energy by 2020 and 6000 MW by 2030. By mid 2018, the country had nearly 200 MW of installed wind power capacity with 6 projects in operation and another 100 MW under construction. These figures show the huge potential that exists for wind power development in Vietnam. The government issued a new decision No.39/2018/QD-TTg that took effect on November 1, 2018, revising Decision No.37/2011/QD-TTg. Accordingly, the new FiT (Feed-in-Tariff) increase for wind power, from the US7.8 cent/kWh to US 8.5 cent/kWh for onshore wind projects and US9.8 cent/kWh for offshore wind projects is a positive move that foreign experts have appreciated. It is also believed that these FiTs will attract more investors to develop wind energy projects. Besides, the country also offers other incentives like import tax exemptions; CIT (Corporate Income Tax) exemption for the first 4 years, and 50% reduction for the next 9 years.

Dr. Nguyen Anh Tuan, Director of Center for Renewable Energy, Institute of Energy (under Ministry of Industry and Trade of Vietnam) said that the registered capacity of projects that have currently applied for permits was more than 17,000 MW (For comparison: as of May 2018, with the old FIT regime, the registered capacity was 6970 MW).

Tuan also spoke of practical challenges facing investors in this sector, including: a paucity of specialized technical expertise and consulting; rigidity in choosing technology; specialized reports requiring approval from several institutions; and transmission lines (TL) lagging behind the proposed RE capacity.

Bui Van Thinh, Chairman and CEO of the Thuan Binh Wind Power Joint Stock Company, shared with delegates the achievements of his company in developing the Phu Lac wind farm. The project was the company’s pride, he said, adding that the success in developing wind energy was shared with local people in several ways, including charity.

The conference was successful in connecting businesses of both countries with interest in developing wind power, promoting a way to produce clean, environmentally-friendly power at lower costs.

My Phung