Questions over capacity of power grid and PPAs in Vietnam

Published onMarch 22, 2019

Over the past few years, although there has been a climb in investment in renewable energy, not only authorised agencies, but investors have expressed their concern about the capacity of absorbing electricity of the national power grid. Making an interesting comparison, Bui Van Thinh, chairman of Thuan Binh Wind Power JSC, said, “The issue about grid connection is just like that of My Dinh National Stadium in Hanoi. While the stadium can accommodate only 40,000 people, the demand for watching football matches is far higher than that. Thus, who will stand inside and who will stand outside the stadium? The same pressure is also facing the national power grid.” Nguyen Minh Quang from the National Load Dispatch Centre under the Ministry of Industry and Trade (MoIT) said that the southern central region is home to the nation’s renewable energy, but power grid conditions there are not prepared for upcoming ­demands. “It takes three years, on average, to build a power grid project, while a solar power one needs only one year to be put in place. As a result, ­electric grid development cannot catch up with the ­proliferation of solar and wind power projects,” he said.