There'll be only 650MW of installed wind capacity in almost 10 years.
Vietnam's regulatory environment for renewables remains underdeveloped and the wind subsidies that have been introduced by the government have been widely criticised for being too low and not ensuring an attractive return on investment, according to BMI Research.
In fact, when the tariff was first introduced in 2011, investor interest in the market picked up, with the government registering 48 wind power projects for development. However, by the end of 2014 only three projects had been commissioned.
Here's more from BMI Research:
As such, despite the fact that over 1GW of wind capacity is recorded in our Key Projects Database for Vietnam, we only expect around 650MW of installed wind capacity online by 2026.
Our forecasts for solar capacity in Vietnam are even more bearish, given that the country has no solar capacity online and clarity over the regulatory framework for solar is lacking.
Although plans for introducing new feed-in tariffs for solar over the coming year have been mooted, we are refraining from factoring any solar capacity into our forecasts until projects enter construction or a comprehensive regulatory framework for solar power is introduced.
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