(Photo: VNS/VNA) Hanoi (VNS/VNA) - An average of nine projectsin power generation and distribution were registered every month since June2017, according to the Vietnam Renewable Energy Report 2018.
The report was released by thefinancial and business information corporation, Stoxplus.
StoxPlus has identified 245renewable energy projects in Vietnam at the moment, including wind and solarpower as well as biomass electricity, which are being deployed at differentstages.
If all these projects beginoperation, the total capacity of the country’s renewable energy should reach23.2 GW, which is nearly 10 times higher than the target of 2.65 GW by 2020 asindicated in the Revised National Master Power Plan VII, effective March 18,2016.
However, of the total projects, only19 percent have reached the construction stage and 8 percent have begunoperation. Most projects are still in the preparation phase.
Vu My Dung, senior analyst atStoxplus, said the lack of comprehensive information was the first challengefor investors and developers to maneouvre renewable energy opportunities. Eventhough information about renewable energy projects in Vietnam has beenfloating around the market, there is no clear information on the number ofprojects or development status, creating confusion and uncertainty amonginvestors, developers and other stakeholders, Dung said.
Moreover, although many projects wereannounced, their progress has been slow due to challenges in the operationalphase, such as credibility of the power purchase agreement and lack of creditrating of Vietnam Electricity, besides other operational risks.
To address the bottlenecks and facilitatethe completion of projects before June 2019, Dung suggests the model ofdomestic-foreign joint venture.
Foreign partners can make up for thedeficit of technology, experience and financial capacity that domestic partnersare facing. They can choose to increase their investment in each phase of theproject until they hold 100 percent of the joint venture capital for bettercontrol and management.
Foreign partners can make up for thedeficit of technology, experience and financial capacity that domestic partnersare facing. They can choose to increase their investment in each phase of theproject until they hold 100 percent of the joint venture capital for bettercontrol and management.
The cooperation between BIM Groupand the Philippines’s Ayala’s AC Energy is one example. This joint venture isfor a 300 MW solar power project in the south-central coastal province ofNinh Thuan. While BIM Group deals with the legal issues, AC Energy providestechnology and financial solutions. The project is expected to be complete thisyear.-VNS/VNA
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