![\"\"](\"https:\/\/ehcmc.com.vn\/wp-content\/uploads\/2021\/08\/dien-gio-ngoai-khoi-3-800x600.jpg\")
<\/figure>\n\n\n\nIn just over 2 months, the FIT prices are coming to an end. Many offshore wind power investors are holding their breath waiting for the next move from the Ministry of Industry and Trade and the Government. Will offshore wind farm projects continue to benefit from FIT prices (incentive power prices), or get bid immediately as planned?<\/p>\n\n\n\n
On behalf of the investors, Ms. Liming Qiao, Asia Regional Director of the Global Wind Energy Council (GWEC), hoped the Ministry of Industry and Trade and the Government to apply FIT prices for offshore wind farm projects with capacities ranging from 4,000-5,000 MW, instead of only 2,000-3,000 MW by 2030 according to the draft power planning 8. GWEC research shows that whether to apply FIT prices or to bid right away is the choice of each country. In Taiwan, the Netherlands also applied bidding after the FIT price period for offshore wind power. Meanwhile, the French market, which is still new in offshore wind power development, has adopted competitive bidding from the beginning.<\/p>\n\n\n\n
In Vietnam, the FIT pricing mechanism is also applied to offshore wind project, but in fact, 3 years is not enough for a project. Because, according to experts, if an offshore wind farm project wants to be economical, the scale must be 400-500 MW\/project, with an investment capital of 800 million – 1 billion USD or more<\/strong>. Implementation time takes about 5-7 years, from the beginning of development to operation. These foreign investors are worried that if they proceed with the bidding right away, Vietnam might face the obstacles France used to experience. Offshore wind power is a very new field in Vietnam, and the domestic supply chain is also extremely limited.<\/p>\n\n\n\n Unforeseeable challenges<\/strong><\/p>\n\n\n\n At this time, whether to apply FIT prices or to bid is still unclear. A “clear policy” is what many investors are “waiting”. Mainstream representatives said they are ready to start phase 1 of Phu Cuong (Soc Trang) 1,400MW wind farm project when there is a clear policy from the Government.<\/p>\n\n\n\n Investors believe that, after the end of the FIT pricing mechanism in November, Vietnam needs a new kick-off mechanism. Vietnam should continue to apply FIT prices for the first 4-5 GW, ensuring the stability of the market during the transition to the bidding mechanism. Because the first projects are very risky, they need to be supported with policies.<\/p>\n\n\n\n However, whether it is bidding or FIT pricing, offshore wind power will have to face many challenges. In particular, capital mobilization is a problem because these projects need large investment funds. Therefore, to approach international capital is very important, the policies need to be clear, stable and predictable. Additionally, will foreign investors accept to cut down on power output when there is a local oversupply of electricity at some points the same as it is happening with onshore solar farm or wind farm projects?<\/p>\n\n\n\n When foreign investors are asked about this issue, almost all of them expressed apprehension. An investor shared: Cutting output will be difficult for investors to raise capital, because it creates an unpredictable factor in terms of revenue. Most offshore wind farms need capital investment, so it must go through rigorous appraisal procedures of banks and insurance companies before a contract is signed.<\/p>\n\n\n\n Mr. Bernard Casey, Development Director of Mainstream Vietnam, admitted that capacity reduction is a huge risk. During the development phase, financial agencies will send experts to appraise projects, evaluate risks, and predict cash flows. If the project is too risky, it will not be possible to raise capital from the financial agencies.<\/p>\n\n\n\n This investor also said that capacity reduction can only be accepted in a short period of time and with a clear commitment.<\/p>\n\n\n\n \u201c\u0110\u00f4i khi, nh\u00e0 \u0111\u1ea7u t\u01b0 c\u00f3 th\u1ec3 t\u00ednh to\u00e1n v\u00e0 ch\u1ea5p nh\u1eadn chuy\u1ec7n c\u1eaft gi\u1ea3m c\u00f4ng su\u1ea5t trong th\u1eddi gian n\u00e2ng c\u1ea5p h\u1ec7 th\u1ed1ng truy\u1ec1n t\u1ea3i. Nh\u01b0ng h\u1ecd c\u1ea7n c\u01a1 s\u1edf x\u00e1c \u0111\u00e1ng \u0111\u1ec3 ch\u1ea5p nh\u1eadn vi\u1ec7c \u0111\u00f3 ch\u1ee9 kh\u00f4ng th\u1ec3 n\u00e2ng c\u1ea5p li\u00ean t\u1ee5c r\u1ed3i c\u1eaft g\u00ec th\u00ec c\u1eaft v\u00ec kh\u00f4ng th\u1ec3 d\u1ef1 b\u00e1o \u0111\u01b0\u1ee3c t\u00e0i ch\u00ednh c\u1ee7a d\u1ef1 \u00e1n. R\u1ee7i ro n\u00e0y nh\u00e0 \u0111\u1ea7u t\u01b0 ph\u1ea3i ch\u1ecbu, cho n\u00ean nh\u00e0 \u0111\u1ea7u t\u01b0 s\u1ebd ph\u1ea3i c\u00e2n nh\u1eafc r\u1ea5t k\u1ef9 n\u1ebfu nh\u01b0 c\u00f3 chuy\u1ec7n c\u1eaft gi\u1ea3m c\u00f4ng su\u1ea5t nh\u01b0 th\u1ebf\u201d, \u00f4ng Bernard Casey chia s\u1ebb.<\/p>\n\n\n\n \u00d4ng Sean Huang, Gi\u00e1m \u0111\u1ed1c Ph\u00e1t tri\u1ec3n Copenhagen Offshore Partner (COP), \u0111\u01a1n v\u1ecb \u0111ang tham gia d\u1ef1 \u00e1n \u0111i\u1ec7n gi\u00f3 ngo\u00e0i kh\u01a1i La G\u00e0n, b\u00e0y t\u1ecf: Khi k\u00fd h\u1ee3p \u0111\u1ed3ng mua b\u00e1n \u0111i\u1ec7n (PPA), \u0111\u00e3 ph\u1ea3i \u0111\u1ecbnh \u0111\u01b0\u1ee3c lu\u00f4n c\u1eaft gi\u1ea3m c\u00f4ng su\u1ea5t bao nhi\u00eau, bao g\u1ed3m c\u1ea3 l\u01b0\u1ee3ng c\u1eaft gi\u1ea3m d\u1ef1 t\u00ednh cho tr\u01b0\u1eddng h\u1ee3p b\u1ea5t kh\u1ea3 kh\u00e1ng. Nh\u01b0ng t\u1ef7 l\u1ec7 c\u1eaft gi\u1ea3m n\u00e0y th\u01b0\u1eddng l\u00e0 nh\u1ecf. N\u1ebfu vi\u1ec7c c\u1eaft gi\u1ea3m c\u00f4ng su\u1ea5t kh\u00f4ng nh\u1ecf, c\u1ea7n t\u00ednh \u0111\u1ebfn c\u00e1c bi\u1ec7n ph\u00e1p kh\u00e1c \u0111\u1ec3 b\u1ea3o v\u1ec7 nh\u00e0 \u0111\u1ea7u t\u01b0, nh\u01b0 b\u1ed3i th\u01b0\u1eddng. \u1ede \u0110\u00e0i Loan, n\u1ebfu c\u1eaft gi\u1ea3m nhi\u1ec1u h\u1ecd s\u1ebd k\u00e9o d\u00e0i th\u1eddi h\u1ea1n c\u1ee7a PPA ra \u0111\u1ec3 b\u00f9 cho th\u1eddi gian b\u1ecb c\u1eaft gi\u1ea3m.<\/p>\n\n\n\n Mr. Sean Huang, Development Director of Copenhagen Offshore Partner (COP), a partner of an offshore wind farm project in La Gan, said: In a power purchase agreement (PPA), the amounts of capacity reduction must be determined, even the reduced amounts in force majeure. The rates of reduction are usually small; otherwise, different measures to protect investors should be taken into account, such as compensation. In Taiwan, if capacity amounts are greatly reduced, the terms of the PPA will be extended to make up for the reduction time.<\/p>\n\n\n\n Source: LB-vietnamnet.vn<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Many investors appreciate the huge benefits when deploying offshore wind farm projects in Vietnam. However, there are countless obstacles such<\/p>\n","protected":false},"author":2,"featured_media":5342,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[117],"tags":[],"class_list":["post-5623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-events"],"yoast_head":"\n![\"\"](\"https:\/\/ehcmc.com.vn\/wp-content\/uploads\/2021\/08\/dien-gio-ngoai-khoi-1-800x600.jpg\")
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