Removing obstacles for 5 wind power projects, increasing income from renewable energy

Stable tax revenue

Gia Lai Provincial Tax Department said that renewable energy accounts for a large proportion of domestic revenue and is expected to continue to make significant contributions, creating momentum for sustainable growth for the provincial budget.

Gia Lai currently has 82 hydropower projects, including 7 large plants invested by Vietnam Electricity (EVN), with a total capacity of 1,841 MW. The province also owns 16 wind power projects with a total investment of more than VND43,197 billion. According to calculations, each MW of wind power contributes about VND550 million/year to the budget. When 1,242 MW of wind power is fully operational, revenue is estimated to reach VND680 billion, accounting for more than 13% of the province's total budget revenue.

According to the Department of Industry and Trade of Gia Lai province, the power development plan for the period 2011-2020, with a view to 2030, still has shortcomings such as the addition of planning for each wind power and solar power project separately, lacking synchronization and comprehensiveness.

With the National Power Development Plan 2021-2030, vision 2050 (Power Plan VIII), the province will overcome these limitations, effectively implement renewable energy investment policies, ensure ecological environmental protection and rational land use.

Unblocking mechanisms to revive the economy

Of the 16 wind power projects, there are 5 wind power projects worth thousands of billions of VND in the area that are not yet in operation.

Chairman of Gia Lai Provincial People's Committee Rah Lan Chung said: "The Government has issued policies and instructions to remove difficulties and the province has directed relevant departments and branches to resolutely implement solutions to create favorable conditions for wind power investors, and soon put the project into operation."

5 wind power projects with more than 600MW, businesses have to bear monthly interest on bank loans when there is no revenue from selling electricity, affecting investors' psychology. The district People's Committee and the provincial Department of Agriculture and Rural Development are coordinating to review the forestry land planning, change the land use purpose of the project stuck with forest land...

The provincial Department of Planning and Investment reviews capital sources, financial capacity, project transfer issues, and deposits according to the Investment Law. After completing the procedures in accordance with legal regulations, businesses investing in wind power projects will be allowed to operate and determine the price of selling electricity to the grid.

The main reason why the 5 wind power projects have not yet come into operation does not come from the province but from problems in the current legal mechanism.