Ho Chi Minh City, Vietnam (Feb. 15, 2021) — Modern Energy Management (MEM), a specialist in developing, building and operating investment grade renewable energy projects in emerging markets, announced that it completed its project development scope of work for approximately 420MW of onshore and intertidal wind projects for a confidential client in Vietnam.
Over the course of 2020, MEM provided commercial and technical advisory support for a confidential client’s Vietnam wind farms. The project CAPEX is estimated to be just over USD600 million.
“To date, MEM has provided advisory services for a significant number of the wind projects being developed and constructed in Vietnam,” said Aaron Daniels, Managing Director of Modern Energy Management. “Clients turn to us to support their projects due to our deep understanding of the requirements for wind projects in the country.”
“There are few firms in the market with experience in both onshore and intertidal wind projects,” continued Mr. Daniels. “Intertidal projects are technically complex and present unique challenges. MEM represents investors on over 450MW of intertidal wind projects in various stages of development.
Vietnam still uses natural resources like coal and hydropower, with coal imports expected to grow significantly over the next decade. However, in June 2020, the Ministry of Industry and Trade (MOIT) approved 7GW of new wind projects. That exceeds the goals set in the current power development plan, where the wind goals were 2GW by 2025 and 6GW by 2030.
The increase of energy production is necessary as Vietnam’s power demand continues to grow. Demand is expected to more than double between 2020 and 2030.
Another impact on renewable energy production in Vietnam is that the Feed-in-Tariff (FiT) is scheduled to gradually decrease after November 2021. While there is currently about 500MW of operational wind projects, only about 1.6GW of wind projects are estimated to be installed before the FiT expires.