Wind power development in Vietnam: solutions to reduce generation cost
Vietnam is estimated to have an advantageous position to develop wind energy. However, the current status of Vietnam’s wind energy industry has yet met such great expectation, due to the uncompetitiveness of the cost of wind power generation. There have been few solutions to this problem, while the government’s policies have not been supportive enough. This paper will present the lessons from the countries around the world and also from the wind power projects that have been developed in Vietnam in order to propose practical solutions for reducing generation cost of wind energy. The paper also uses these solutions to examine the factors that influence the generation costs of a wind power project in Vietnam (Hoa Thang Wind Power Project). The research finds that the generation cost varies from 7.01 to 9.14￠/kWh, depending on different measures (compared with 12.26￠/kWh in the reference case). However, beside optimistic scenarios which are hard to happen in the near future, wind generation costs in other cases are all higher than 7.8￠/kWh - the tariff set by the Government for wind power. If the Government does not increase the tariff , wind power projects in Vietnam will face huge challenges in attracting commercial investors.
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