Foreign firms guzzle renewable energy plants based in Vietnam

Investors from foreign firms have attained quite a several solar and wind power plants that are based in Vietnam, and some officials say that it is routine in an economic-based market.

A firm called Thai energy Gulf Group newly enlarged its possession in two solar power plants based in the southern province of Tay Ninh. Last year two plants namely TTC1 and TTC 2 had a conjoined investment from Gulf and Thanh Thanh Cong

Gulf possess a more significant percentage of the wind power projects that are located in the southern province of Ben Tre

A firm called Super Energy Corporation has also been buying stakes in a chain of solar power plants based in the southern province, the company highlighted that it would most likely pump 475 million dollars in four solar power plants that are located in the south of the area in Binh Phuoc to be specific, and would possess a controlling stake in these projects

Investors from Asian countries such as China, Philippines, and Singapore have acquired possession in quite some solar and wind power plants in Vietnam through business ventures.

People working inside the industries said that the non-local firms are strained to the incentive FITs, which is feed-in- tariffs for the projects concluded before the 30th of June 2019. The head of Electricity and Renewable Energy Hoang Tien Dung quoted that foreign firms possessing renewable projects were a lawful and customary market mechanism

Energy corporations that are known globally to be big rarely commence a project from the start because of the enormous amount of time consumes through possessing land and straining to acquire authorization from local authorities, hence companies with a clear comprehension of regulations and policies will stand out in conducting these right steps.

Huge corporations, for the time being, are financially fit and have gone to the next level with technology that is at hand to aid in massive projects and small projects as well to reduce the running cost.

There is also a worrying concern that small-scale investors from Vietnam have used the regulations to work in their favour by acquiring authorization for projects that are renewable only to vend them hurriedly to foreign firms to gain some income out of it. Hence it was requested by the Nguyen Xuan Phuc who is the Prime Minister that the matter be examined quickly

Since the beginning of this year, starting from May, a total of 92 solar power and ten wind power projects are running with a capacity of 6,000 megawatts. Hence the Vietnamese government approved a lower feed-in-tariff for the renewable energy that stands at 7.09 cents

The government is also examining a mechanism for renewable energy in the coming days; hence they can contest with projects involving coal and gas.

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