The Hung Hai Wind Power Plant. Photo by BB Group.
For years, multiple wind power plants in Gia Lai have been completed but left idle, unable to operate or sign power purchase agreements due to legal and administrative hurdles. This has led to significant waste of investment capital and losses estimated in the trillions of dong for developers.
Several large-scale wind projects have yet to receive operating licences, including Cho Long Wind Power Plant, Yang Trung Wind Power Plant, Tay Nguyen Processing Wind Power Plant and Ia Pech Wind Power Plant.
Previously, all large-scale renewable energy projects required appraisal and licensing from the Electricity Regulatory Authority of Vietnam under the Ministry of Industry and Trade. Only after obtaining this licence could developers negotiate and sign power purchase agreements with Vietnam Electricity (EVN).
However, under the revised Electricity Law, which recently came into effect, provincial Departments of Industry and Trade are now authorised to issue operating licences for projects with installed capacity below 50 megawatts.
Gia Lai’s Department of Industry and Trade confirmed that it would begin administrative procedures to process the licensing application for the Tay Nguyen Processing Wind Power Plant. The project, with a capacity of under 50MW and a total investment of VND 1,917 billion (approximately USD 75.5 million), is developed by Chu Prong Gia Lai Wind Energy JSC.
Most wind power projects in the province were completed between 2023 and the present but have yet to be granted commercial operation status, meaning they are unable to sell electricity to the grid or generate revenue.
Developers are eagerly awaiting licence approval, which would allow them to begin selling electricity, repay bank loans, cover labour costs and recoup construction and investment expenses.
