Wind power is a clean and environmentally friendly source of renewable energy. Through the movement of giant blades in strong wind environments, mechanical energy is generated and transmitted to generators to produce electricity.
In the current socio-economic development context, the role of wind power and other renewable energies becomes more important than ever. It not only helps reduce dependence on fossil energy sources but also contributes to environmental protection and climate change mitigation. Moreover, investing in wind power development also creates many job opportunities and contributes to the socio-economic development in regions with wind power potential.
According to a recent study, wind energy in Vietnam has significant potential, with over 39% of Vietnam's area having an average annual wind speed above 6 m/s at a height of 65m, and over 8% of Vietnam's mainland area having an average annual wind speed above 7 m/s. This corresponds to a wind resource potential of 512 GW and 110 GW, respectively.
In recent years, wind power has become one of the fastest-growing renewable energy sources in Vietnam. By the end of 2023, the total installed capacity of wind power in Vietnam reached 4948.5 MW. In the coming years, wind power is expected to continue to be one of the key renewable energy sources in Vietnam. Therefore, the Vietnamese government has set some targets for the industry by 2030, with an additional 6,000 MW of offshore wind power installed capacity, while the total accumulated onshore wind power capacity (including onshore and nearshore wind power) is 21,880 MW.
Significant figures about the wind power sector in 2023
Despite renewable energy sources being prioritized for strong investment, accounting for nearly 30% of the total capacity, the distribution of these types of electricity is uneven, and people still face the risk of power shortages. One reason is that only a portion of the capacity is transmitted into the national grid, and most renewable energy projects are concentrated in the Central and Southern regions, where the demand and growth of electricity are lower than in the Northern region, while the infrastructure is insufficient to transmit enough electricity from the Central and Southern regions to the Northern region.
Regarding the wind power sector specifically, the industry is also facing significant challenges such as difficulties in land clearance, attracting investment, rising material costs, rose spare part details (steel prices and rare earth elements increase), and difficulties in ensuring operation processes, leading the wind power industry to face significant financial pressure from construction, installation to wind turbine maintenance. Therefore, besides addressing these challenges, the government is also considering the policy of importing wind power from abroad, such as Laos,...
Some companies completed wind power projects and national grid in 2023
Investor | Wind power plant | Capacity |
T&T | Lac Hoa 2 wind farm | 130.000 MW |
TIEN GIANG WIND POWER | Tan Phu Dong 1 wind farm | 100.000 MW |
HANBARAM | Hanbaram wind farm | 93.000 MW |
MEKONG WIND POWER | Binh Dai wind farm, Binh Dai no.2 and no.3 wind farm | 25.80 MW 49.00 MW 49.00MW |
HOA ĐONG 2 WIND POWER | Hoa Dong 2 wind farm | 45.60 MW |
SONG LAM HYDROPOWER | Tan An 1 wind farm (2021 - 2025) | 45.00 MW |
FICO BINH DINH | Nhon Hoi wind farm - Phase 2 | 30.00 MW |
TAN HOAN CAU | Huong Hiep 1 wind farm | 25.50 MW |
VPL ENERGY | VPL Ben Tre wind farm | 4.20 MW |
T&T
T&T Group operates in various fields, including the development of renewable energy and low-carbon energy (such as LNG). Currently, the group is implementing large-scale development projects in the Central, Central Highlands, and Southern regions.
In the wind power sector, in 2023, the group completed the Lac Hoa 2 Wind Power Plant project with a capacity of 130,000 MW. Looking towards the goal of 2035, the group and its partners proposed to supplement nearly 30 GW in the VIII Electricity Development Plan, including solar power, onshore wind power, biomass power, and waste-to-energy. These projects have been updated in the state planning.
In terms of business, T&T Group's net revenue and profit after tax showed stable growth over the years. Specifically, the company witnessed steady growth in net revenue during the period of 2020-2021, with an increase of 13-14%, while profit after tax surged in 2021 and then slowed down in 2022, reaching over VND 350 billion.
TAN HOAN CAU
Tan Hoan Cau Corporation was established on April 27, 2005, headquartered in Quang Binh province, and is a large enterprise in the Central region, closely associated with the name of businessman Mai Van Hue. The corporation's business activities focus on the energy production sector with a series of wind and hydroelectric power projects in the Central region.
In the wind power sector, Tan Hoan Cau is investing in a cluster of projects (totaling 420 MW), including the Huong Linh - Quang Tri Wind Power Project (150 MW), and the Huong Hiep 1 - Quang Tri Wind Power Project (90 MW). Specifically, the Huong Hiep 1 Wind Power Plant (25.5 MW) was put into commercial operation in 2023.
The business picture of Tan Hoan Cau did not show positive signs in the three-year period as its revenue decreased by 70% in 2021 and did not generate any revenue in 2022. This led to the company's profit after tax dropping to negative VND 10 billion in 2022.
Net revenue of some companies with national grid wind power plants in 2023
TIEN GIANG WIND POWER
Wind Energy Joint Stock Company Tien Giang is a member of Gia Lai Electricity Company (GEC holds 55% of the charter capital in 2023), a subsidiary of TTC Energy Company. The company is the investor in the Tan Phu Dong 1 and Tan Phu Dong 2 Wind Power Plants with a total capacity of 150 MW. This is also the first wind power project in Tien Giang province and the third wind power project of GEC.
Wind Power Tien Giang recorded significant growth in the years 2021 and 2022. Specifically, the company's net revenue went up more than 7 times in 2022, leading to an almost 130% increase in profit after tax, reaching over VND 280 billion in revenue and nearly VND 4 billion in profit.
VPL ENERGY
VPL Energy Joint Stock Company was established on March 10, 2017, with its main activity in electricity production and is a subsidiary of Gia Lai Electricity Company (GEC holds 89% of the charter capital). In 2023, the company completed and operated the VPL Ben Tre Wind Power Plant with a capacity of 4.2 MW.
From 2021 to 2022, VPL Energy witnessed quite stable development with significant growth in net revenue and profit after tax. With net revenue increasing fivefold compared to the previous year, the company's profit also recorded a 17% increase in 2022, standing at nearly VND 20 billion.
FICO BINH DINH
FICO Binh Dinh Energy Joint Stock Company is the investor in the Nhon Hoi Wind Power Plant, built in Phuong Mai Mountain, Nhon Hoi Economic Zone. Nhon Hoi 1 Wind Power Plant with a capacity of 30 MW commenced commercial operation in 2021. Meanwhile, the Nhon Hoi 2 Wind Power Plant project with a capacity of 30 MW, located on an area of about 201 hectares with a total investment capital of over VND 1.249 trillion, was completed and connected to the national grid in 2023.
Regarding the business situation in 2021 and 2022, although FICO Binh Dinh achieved significant growth in net revenue, the profit after tax of the company tended to fall slightly, reaching over VND 10 billion in 2022.
Profit after tax of some companies with national grid wind power plants in 2023
HOA DONG 2 WIND POWER
Hoa Dong 2 Wind Energy Co., Ltd. was established in August 2020 and is the investor of the Hoa Dong 2 Wind Power Plant in Khanh Hoa Ward, Hoa Dong Commune, and Vinh Chau Town, Soc Trang Province. Specifically, a plant with a capacity of 45.6 MW was completed in 2023.
During the period of 2021-2022, Hoa Dong 2 Wind Energy witnessed strong growth in net revenue. In 2022, its net revenue surged sixfold compared to 2021, achieving nearly VND 140 billion. Meanwhile, profit after tax experienced a slight decline, reaching about VND 3.5 billion in 2022.
SONG LAM HYDROPOWER
Song Lam Hydropower Investment Joint Stock Company was established in 2007 by experts in the electricity energy field. This company is also the investor in the Tan An 1 Wind Power Plant (Phase 2021 - 2025) with a capacity of 45 MW in Tan An (Ngoc Hien district), which was completed in 2023.
The company recorded significant growth in net revenue, nearly six times higher than the previous year, achieving nearly VND 140 billion. However, unlike the stable revenue growth, the profit after tax of the company in 2022 reached negative VND 15 billion.
HANBARAM
Hanbaram is a renewable energy project of BB Group. With the establishment of Hanbaram Wind Power Joint Stock Company in May 2018, the group diversified into the renewable energy sector with the Hanbaram Wind Power Plant project - a capacity of 93 MW.
The revenue and profit after tax of Hanbaram showed contrasting growth trends. Unlike the outstanding growth in net revenue with an 800% increase from 2021 to 2022, profit after tax did not show optimistic signs, as it remained negative for two years.
MEKONG WIND POWER
Mekong Wind Power Joint Stock Company was established on March 28, 2017, and is a joint venture between Thanh Thanh Cong Group (TTC) and GULF Group (Thailand). After several rounds of capital investment, GULF Energy Corporation now owns 95% of the company's capital. The company's notable project is the 3 wind power projects in Binh Dai, Ben Tre province, with a total capacity of up to 123.8 MW.
Mekong Wind Power recorded revenue growth in 2022, but profit tended to be negative. Specifically, the company's revenue climbed nearly 200% in 2022, standing at about VND 14 billion. Meanwhile, profit after tax decreased to over VND 200 billion.
Wind power is one of the renewable energy sources that will continue to be strongly developed in line with the trend towards achieving the government's commitment to net emission reduction by 2050. To achieve this goal and develop wind energy in the future, the government needs to establish appropriate legal frameworks and favorable policies to create conditions for businesses to participate. Additionally, the application of new technologies in the production and maintenance processes may help reduce costs and enhance the competitiveness of the wind power sector in Vietnam.
Source: Vietdata's 2023 Vietnam Wind Power Market Report