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| The Bac Lieu Wind Power Plant in Vinh Trach Dong commune, Bac Lieu city, Bac Lieu province__Photo: VNA |
Foreign investors in offshore wind power projects in Vietnam would be required to have implemented at least one offshore wind power project of an equivalent scale in either Vietnam or other countries.
Such is provided in the latest draft decree prepared by the Ministry of Industry and Trade to guide the Electricity Law’s regulations concerning electricity generation from renewable energy and new energy.
Also required by the draft, foreign investors must satisfy market access conditions applicable to foreign investors and carry out law-specified investment procedures. Besides, they must have a total audited net asset value in the latest three years greater than the total expected investment level of such projects.
Foreign investors wishing to implement offshore wind power projects in Vietnam must join hands with domestic investors that meet requirements on financial capacity, capital mobilization plans and human resources for project implementation. However, foreign investors’ capital contribution in an offshore wind power project must not exceed 65 percent of the charter capital of the project enterprise. Projects would be implemented only after obtaining approval from the Ministry of National Defense, Ministry of Public Security and Ministry of Foreign Affairs.
In order to encourage the development of offshore wind power projects, the draft provides numerous incentives such as exemption from sea use levy, land use levy or land rental for the period of construction, a 50-percent reduction of sea use levy for 12 years following the commencement of operation.
Projects connected to the national power grid might maintain a long-term minimum electricity offtake quantity of up to 80 percent in the loan principal repayment period, which, however, must not exceed 12 years.- (VLLF)
