Danish wind turbine manufacturer Vestas Wind Systems S/A has set up a Vietnam subsidiary in order to meet the potential fast growth in investment in the country’s fledgling wind power market.
Vietnam is blessed with abundant wind resources - among the richest in Southeast Asia and the outlook for wind’s future is bright, Chris Beaufait, president of Vestas Asia Pacific, said at the “Vietnam Wind Talks” seminar held in Hanoi on November 29.
Through discussions, the Vietnamese government has recognized that the feed-in tariff (FIT) is currently low and is in process of raising both the onshore and near-shore tariffs, Beaufait told reporters.
Chris Beaufait, president of Vestas Asia Pacific, speaks at the “Vietnam Wind Talks” seminar held in Hanoi on November 29.
“When that changes, it will bring a lot of investors to the market. And we need to be there before the investors are to make sure that we can successfully support them,” he said.
Besides a future higher FIT, Vestas has confidence in the Vietnamese wind market. Vietnam has wind potential of 27 gigawatts, which is a very large number, he added, citing a recent research.
“When you compare Vietnam to other countries, it has very good wind resources. The accommodation of good wind resource and a vision of FIT mean that it should have significant potential,” Beaufait stressed.
After the initial phase of investment, Vestas has already a plan to build a plant to produce wind towers in Vietnam to involve the country in the global supply chain and meet rising demand in the region, he tipped.
According to Deputy Minister of Industry and Trade Hoang Quoc Vuong, Vietnam has wind power potential of 10 GW onshore.
Under a government-approved roadmap, the country aims to develop 800 MW of wind energy in 2020, or 0.8% of total domestic electricity consumption. The installed capacity is expected to reach 2,000 MW in 2025 and 6,000 MW in 2030.
However, only three wind projects with a combined capacity of 150 MW have become operational.
Vestas provided 12 turbines to the Phu Lac 1 wind power plant with an installed capacity of 24 MW in the central province of Binh Thuan
. The wind mill became operational earlier this month.
The Danish firm will supply turbines for the 30 MW Huong Linh 2 project in Quang Tri
province next year. This is the first venture into wind between Vestas and Vietnam’s Tan Hoan Cau JSC, Beaufait said.