New regulations could establish planning framework for Vietnamese wind, says expert

The regulations, published by the country's Ministry of Industry and Trade last month, come into force on 1 May 2013. It commits the authorities to producing a national wind power development plan within 30 working days of receiving submissions from the country's centrally-affiliated cities and provinces.

Energy expert John Yeap of Pinsent Masons, the law firm behind Out-Law.com, said that the new regulations implied that Vietnam was considering a more targeted approach to wind power development than neighbouring countries.

"Vietnam has yet to meaningfully convert its wind resources into viable projects," he said. "Issues around tariffs and approvals, as well as financing, have so far been barriers for developers. The new regulations should go some way towards establishing a planning framework for wind projects."

"However, it remains to be seen if the implementation of the regulations will be sufficiently robust to deliver the required outcomes. Furthermore, clarity on tariffs and offtake will be required before developers are able to raise debt and equity to finance the projects," he said.

When complete, Vietnam's national wind power development plan will set out the country's theoretical and technical wind power potential, according to a Vietnamese government circular seen by Out-Law.com. It will further break down the development potential of individual regions and provinces over the investment period to 2020, with a view to 2030.

The Ministry of Industry and Trade will prepare a detailed outline and cost estimates, and will submit these back to the "People's Committee" of the provinces and cities for approval, according to the circular. It will then select a qualified consulting organisation to develop a draft development plan based on the outline and estimate.