New regulations on wind power development to avoid overlapping planning

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The Ministry of Industry and Trade (MOIT) has just issued the Unified Document No. 07/VBHN-BCT for regulating wind power development and Standardized Power Purchase Agreement (PPA) for wind power projects. 

Accordingly, the provisions of this document are applied to the investors, management and operation units of wind power projects, electricity buyers, and other relevant organizations and individuals.

According to MOIT, the development planning for the wind power projects must be carried out according to the Power development planning (PDP), which defines wind potential and area for developing wind power projects for each locality. Wind power projects not included in the planning must be appraised and submitted to competent authorities for approval and supplementing to PDP.

On the other hand, when the list of the wind power projects approved in the provincial wind PDP for the period of 2011-2020, the Provincial People’s Committee (PPC) must update the planning on connecting the wind power projects to the power system to ensure transmitting capacity of the project and ability of power absorption of power system in the project area. In case of changing project connection, PPC has to report to MOIT for appraisal, approval, or submit the adjusted project connection for approval according to its competence.

MOIT assigns the Department of Electricity and Renewable Energy to disseminate, guide and inspect implementing the provisions of this document. In the course of implementation, if any problem arises, the Department of Electricity and Renewable Energy coordinates with relevant units and localities to consider and propose MOIT to amend and supplement.

In addition, the Department of Electricity and Renewable Energy will also be responsive to evaluate the theoretical, technical and economic potential of the wind power in the whole country, to define potential distribution by the regions for databases to develop wind power projects in PDP. At the same time, the Department of Electricity and Renewable Energy to preside studying and propose bidding mechanism for wind power development applied from November 01, 2021 for MOIT to submit Prime Minister for consideration and decision.

MOIT also assigns Industrial Department to preside studying and propose the mechanisms on encouraging domestic producing wind power equipment for enhancing localization rate in wind power project, for reporting to MOIT to submit Prime Minister for consideration and decision.

PV.

For more information, please contact Vietnam Trade Office in Singapore at [email protected]