Many wind power projects in Gia Lai, Kon Tum waiting for licensing
Gia Lai and Kon Tum are potential lands for wind power development. Gia Lai alone has 16 large-scale projects with investment capital of thousands of billions of VND. However, there are currently 5 projects that have not been recognized for commercial operation and do not have a power operation license to negotiate power purchase contracts with EVN. The unlicensed projects include: Cho Long, Yang Trung, Ia Pech Wind Power Plants, Mountainous Development and Central Highlands Processing.
In Kon Tum, the Tan Tan Nhat wind power project (capacity of 50MW, investment capital of nearly 1,900 billion VND) has not been licensed by the Electricity Regulatory Authority - Ministry of Industry and Trade. Although the project was completed more than two years ago, the projects are still stuck due to procedural problems.
Mr. Tran Minh Dung - General Director of Yang Trung Wind Power Plant - said that the Cho Long - Yang Trung project has been completed since 2023 and has been accepted by the State. However, due to the expiration of the investment policy and some shortcomings, the enterprise had to wait for an extension before applying for a power operation license.
The Cho Long - Yang Trung project has a total capacity of 300MW, but can only sign a contract to sell 50MW at FIT price. The remaining part has not been recognized for commercial operation, causing investors to suffer losses of about VND1,000 billion/year - much larger than investment capital.
Although the project is stalled, the enterprise still has to pay interest on bank loans, labor costs and equipment maintenance costs imported abroad. On average, the maintenance cost of each wind power pole is up to 500 million VND/year. With hundreds of pillars, the financial burden is increasingly weighing on investors.
Removing obstacles for projects
After the Government issued policies on wind power projects, the Gia Lai Provincial People's Committee directed the Department of Industry and Trade, the Department of Agriculture and Rural Development, the People's Committees of districts and towns... to coordinate with enterprises to overcome difficulties according to the conclusion of the Government Inspectorate.
The main problems are related to forestry land planning, conversion of land use purposes for built wind power towers, land lease procedures and extension of investment policies.
In mid-February 2025, the People's Committee of Gia Lai province proposed that the Ministry of Industry and Trade direct specialized agencies to promptly inspect, accept and grant power operation licenses to projects. Only with this license can the enterprise qualify to work with EVN to sign an electricity purchase contract.
Mr. Pham Van Binh - Director of the Department of Industry and Trade of Gia Lai province - said: "The province has actively removed difficulties to soon put the project into operation. If the Electricity Regulatory Authority issues a license soon, investors can sell electricity, increase revenue for local budgets and create jobs for workers. Wind power projects play an important role in the socio-economic development of the locality and the whole country.
In Kon Tum, Mr. Le Nhu Nhat - Director of the provincial Department of Industry and Trade - said that the Provincial People's Committee has directed functional agencies to support businesses in completing legal documents. The Department is also urging businesses to submit documents to extend investment policies to the Department of Planning and Investment to have a basis for land lease procedures and apply for a power operation license.
Gia Lai province has 16 wind power projects with an investment capital of over VND43,197 billion. According to calculations, 1MW of wind power contributes 550 million VND/year to the budget. If 1,242MW of wind power is fully operated commercially, it will contribute about 680 billion VND, accounting for over 13% of the total budget revenue of Gia Lai province.
