Five completed wind power projects in Gia Lai cannot start commercial operations due to some quality issues and lower-than-expected electricity transmission capacity in the Central Highland province.
The five projects are Ia Pech 2, Song An, Yang Trung, with two belonging to wind power development company Chu Prong Gia Lai.
Both Chu Prong Gia Lai projects are hampered by a dysfunctional 110kV transmission line and transformer station.
Meanwhile, the Ia Pech project registered for commercial operations with 12 turbines, but only five turbines were qualified in testing, according to the Gia Lai Department of Industry and Trade. Projects Ia Pech 2 (two turbines), Song An (five turbines), and Yang Trung (one turbine) have registered for commercial operations but all failed when tested.
A recent report from the department said 11 out of 16 wind power projects in the province have to date started commercial operations with a total capacity of 563 megawatts installed, or 47% of the total designed figure.
Pham Van Binh, director of the department, said that projects completed after October 31, 2021 - the deadline for Vietnam’s feed-in tariff (FIT) mechanism - cannot operate because they have not been approved. He added the Ministry of Industry and Trade has not issued a new pricing scheme for selling and buying electricity, making them unable to switch on.
A project investor who asked not to be named told The Investor, "It is very difficult for investors in this situation as they have to bear financial pressure and capital costs while the projects are unable to operate. We expect the ministry will soon announce the new pricing mechanism to solve our problems and save national resources."
Apart from Gia Lai, other wind power projects across the country are waiting for a commercial operation day (COD). According to Ministry of Industry and Trade statistics, as of October 31, 2021, there were only 69 wind power projects with a total capacity of 3,298.95 MW recognized with COD nationwide. Compared to 106 projects with a total capacity of 5,655.5 MW registered, about 2,300 MW are missing.
Of this, about 1,000 MW of wind power has completed investment but failed to enjoy the FIT and is still waiting for a new pricing mechanism.