Wind farms that offer economic efficiency and plan to connect with the national grid could be given priority status by the Government as it seeks to modernize the nation's energy supply.
The Ministry of Industry and Trade has issued circular No 32/2012/TT-BCT on Wind Energy Projects and a template Contract on buying and selling for wind energy.
Under the circular, the Energy General Department has to submit an annual report on November 30, on the number of wind farms which are scheduled to generate electricity in the next five years.
These wind farms must be in alignment with the national energy sector's development and priorities will be given to those with high economic and financial efficiency, as well as plans to connect with national or regional grids.
The ministry requests that project owners follow its guidelines and stipulates that capital investment from a project owner must exceed 20 per cent of the project total investment.
The provincial people's committees will be the sole authorities to grant licences after getting approval from the ministry.
However, a project's licence will be revoked if the project fails to start within 12 months of the licence being issued.
In addition, the wind farm must produce electricity within 24 months, an agreement the project owner commits to in the licence application.
During the operation, on May 31 every year, the project owner has to file a report on their energy yield for the previous year and plans for the following year to the Energy General Department.
The energy tariff will be worked out between the Department and the project owner before October 30 annually.
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd (SBC), Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. Since we are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at firstname.lastname@example.org. Many thanks.