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Representatives from the Government, financial institutions, investors and project developers in wind energy discuss financing options for wind energy projects in Vietnam (Photos Courtesy of Vestas) |
Vesta could finance projects with local partners and assist them in the opening phases, Chris Beaufait, President of Vestas Asia Pacific and China, said at a seminar in Hanoi on December 8 organised by the Embassy of Denmark and Vestas.
Vietnam had the greatest wind energy potential in the Southeast Asia region, he added.
At the seminar, Vestas, together with its partners EKF – the Danish Export Credit Agency which provides export credit insurances - and IFU – the Investment Fund for Developing Countries, shared their experience on existing solutions within the wind energy sector and how Vietnam's local developers can embark on this journey, especially while they are facing financing issues.
With its 35 years of experience, Beaufait said that Vestas knew the challenges for frontier wind markets like Vietnam at the start of the wind journey, and was ready to share knowledge with partners in Vietnam.
In Vietnam, Vestas has one active project at the moment, generating about 27.3 million kWh per year. Globally, it has had more than 52,000 wind turbines which generate 64GW of windpower, reducing carbon emissions by millions of tonnes every year.
In 2011, the Vietnamese Government issued Decision 37/2011/QD-TTg to support wind power projects in Vietnam, setting an annual target of 1,000MW by 2020, accounting for 0.7 percent of total electricity production. The figure is expected to increase to 6,200MW, or 2.4 percent, by 2030.
However, Le Tuan Phong, Deputy Head of the Ministry of Industry and Trade's General Department of Energy, said the number of wind power projects was still low due to limited technology and high costs that made wind power less attractive compared to hydropower and thermopower projects.
At the event, John Nielsen, Danish Ambassador to Vietnam, highlighted the story of his country transitioning from a society dependent on imported fossil-fuel to a completely energy independent economy with an increasing amount of renewables in the energy mix.
"Wind energy provides more than 33 percent of Denmark's electricity consumption today, which is the highest level of wind power integration in the world," said Nielsen.
He added it was important the Vietnamese Government had addressed the need to develop renewable energy.
Another seminar is scheduled to be held in Ho Chi Minh City on December 9.