Up-Scaling of Wind Power in Viet Nam

Capacity Needs Assessment for Wind Power

Imprint
Published by the
Deutsche Gesellschaft fr
Internationale Zusammenarbeit (GIZ) GmbH

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As at
February 2016

Text
Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ) GmbH
GIZ is responsible for the content of this publication.

Cattelaens, Peter, Project Manager, GIZ Up-Scaling of Wind Power project

Theokritoff, Emily, GIZ Up-Scaling of Wind Power project

Knecht, Klaus, freelance consultant, Berlin

Reinke, Florian, freelance consultant, Berlin

Van Tien, Bui, Viet Nam Applied Technical Co. Ltd (VATEC)

On behalf of the
German Federal Ministry for Economic Cooperation and Development (BMZ)

Executive Summary
Viet Nams Power Development Plan VII sets out targets for the installation of 1 GW of wind power by
2020 and 6.2 GW by 2030. In 2011, a Feed-In-Tariff (FIT) of 7.8 US Cents/kWh was issued for the
remuneration of grid-connected wind power projects. However, only 52 MW of wind power capacity
have been installed in 2015. One of the main barriers is the feed-in tariff that is perceived as too low
by stakeholders. Another central barrier is the overall lack of knowledge and experience in the field.
The aim of this capacity needs assessment is therefore to provide information on existing and
required expertise and skills that will contribute to stimulating the expansion of wind power in Viet
Nam.
Key Findings

The present report has identified a number of capacity needs and suggests numerous capacity
development measures. While the Up-Scaling of Wind Power in Viet Nam project, jointly implemented
by MOIT and GIZ will do its best to address many of these, the recommendations in this report serve
a much wider audience, encouraged to take up these capacity development needs and measures.

Wind power is new in Viet Nam, the sector (as in every other country in the world at this stage) is
still underdeveloped in terms of capacities, experience, and knowledge. While some expertise exists,
capacities need to be expanded significantly in both public, and private sector, if wind is to make a
substantial contribution to the overall power mix.

Planning, policy-making, and regulation of the wind power sector in Viet Nam are taking place since
the issuance of the first FIT in 2011. The extent to which the sector is regulated, its expansion
monitored on national level and the way the regulation is implemented on provincial level highlights
the quantitative and qualitative capacity needs that exist on the administrative side. The central body
for policy-making in the power sector, the Ministry of Industry and Trade (MOIT), and in particular
its General Directorate of Energy (GDE), currently only have little tools and mechanisms available for
effective policy-making or monitoring. Training in this regard is suggested for both the national
level, as well as for the provincial level (DOIT) where licenses are issued and wind power
development takes place. Trainings should also sensitise for the general underlying economic models
of renewable energy projects, i.e. cash flow-based upfront investments with a lifetime of typically 20
or so years.
At the moment, the development of the wind
power sector is largely driven through local
and international private sector pushing the
public sector to offer attractive conditions,
issue licenses, etc. Wind farm development
depends critically on the experience of
international project developers and, through
international technology providers such as
turbine manufacturers, a small number of
qualified local individuals. An increase in the
number and the quality of local project
developers is required. Local expertise exists
for wind measurements and yield assessments,
but full-scale technical designs, feasibility
Bac Lieu Wind Farm under construction
Nov 2015, photo: GIZ
studies, environmental and social impact
analyses, etc. as well as political advisory
services through consulting for example are aspects of the value chain that have to be further
expanded upon.
Equally critical will be the expertise and experience in financing wind power. As a cash flow-based
business, the structuring of multi-million dollar investments into wind power is not trivial. Local
banks do not have experience in renewable energy (cash flow-based) financing structures yet, and
possess little knowledge about the actual technology (including its risks and opportunities).

4
The education sector at university level is slowly starting to acknowledge the importance of
renewable energy technologies for the power mix, and thus an essential part of engineering
disciplines, e.g. in the form of study programmes at Bachelor and Master level. Wind power curricula,
however, are either not part of degrees or very basic. Efforts have to be increased to meet the
demand of a growing wind power sector. Technical skill training does not exist apart from on-the-job
project-based training. To meet the education needs on technical skill level, Technical Vocational
Education and Training (TVET)-institutions should be encouraged to offer in the medium-term a
range of trainings. To that end, support to train-the-trainers/teachers is required and curricula need
to be developed, to ensure that qualified technicians can install, maintain, and operate wind turbines
in Viet Nam in the years to come. Research cooperation between faculties of Vietnamese and
international universities should be initiated. A general handbook introducing wind energy in Viet
Nam for all stakeholders could serve as a primary guideline for trainings and workshops.

Table of Content
Executive Summary

Abbreviations

List of Tables

List of Figures

1. Introduction

10

2. Wind Power in Viet Nam

2.1 Key drivers at an early stage of market development
2.2 Strengths, Weaknesses, Opportunities and Threats
2.3 Policy for wind power development

12
12
13
16

3. Description of Stakeholders
3.1 Policy-making, administration and regulation
3.2 Private sector
3.3 Training, education and research
3.4 Stakeholders in the wind sector Overview

19
19
23
24
25

4. Results of the Assessment: Capacity Needs at all Levels

4.1 Policy-making and regulation at national level
4.2 Policy-making and regulation at provincial level
4.3 Private sector
4.4 Training, education and research

27
27
31
33
38

5. Capacity Building Measures Overview

44

6. Potential for Local Value Creation

6.1 Estimated need for training in manufacturing
6.2 Estimated need for training in transportation and installation
6.3 Estimated need for training in O&M
6.4 Recommendations to increase value creation

49
50
51
53
54

7. Conclusions

56

References

57

Annexes

58

Abbreviations
AEP
BIDV
CAPEX
CB
CD
CNA
DARD
DKTI
DNRE
DOC
DOIT
DONRE
DOST
DPI
EAB
EPC
EPU
ERAV
ESIA
EVN
EVN-NLDC
EVN-PSAPD
EVN-TBW
EVN-PECC3
EVN-PECC4
FDI
FIT
FS
GDE-MOIT
GE
GIZ
HCMCUT
HR
HUST
IoE
ISO/IEC 17025
KfW

Asset Earning Power

Bank for Investment and Development of Viet Nam

Capital Expenditure
Capacity Building

Capacity Development

Capacity Needs Assessment

Provincial Department of Agriculture and Rural Development

Deutsche Klimatechnologie-Initiative

Department of New and Renewable Energy (under GDE)

Provincial Department of Construction

Provincial Department of Industry and Trade

Provincial Department of Natural Resources and Environment

Provincial Department of Science and Technology

Provincial Department of Planning and Investment

New Energy GmbH

Engineering, Procurement and Construction

Electric Power University

Electricity Regulation Authority of Viet Nam (under MOIT)

Environmental and Social Impact Assessment
Viet Nam Electricity

National Load Dispatch Centre

Power System Analysis and Planning Department under NLDC

Thuan Binh Wind Power Joint Stock Company

Power Engineering Consulting Joint Stock Company 3

Power Engineering Consulting Joint Stock Company 4

Foreign Direct Investment
Feed-In Tariff

Feasibility Study

General Directorate of Energy Ministry of Industry and Trade

General Electric

Deutsche Gesellschaft fr Internationale Zusammenarbeit

Ho Chi Minh City University of Technology
Human Resources

Hanoi University of Science and Technology

Institute of Energy (under MOIT)

General Requirements for the Competence of Testing and Calibration

Kreditanstalt fr Wiederaufbau

7
LIDAR
MEASNET
MOC
MOET
MOF
MOIT
MONRE
MOST
MPI
NPTC
O&M
OoG
OPEX
PDP
PM
PPA
PPC
Pre-Fs
PRI
P/S
RE
SBV
SCADA
SGI
SPPA
TVET
TOR
VATEC
VEPF
WTG
WTT

Light Detection and Ranging

International Network for Harmonized and Recognized Measurements in Wind Energy

Ministry of Construction

Ministry of Education and Training

Ministry of Finance

Ministry of Industry and Trade

Ministry of Natural Resources and Environment

Ministry of Science and Technology

Ministry of Planning and Investment

National Power Transmission Corporation

Operation and Maintenance
Office of the Government
Operational Expenditure

Power Development Plan

Prime Minister

Power Purchase Agreement

Provincial Peoples Committee

Pre-Feasibility Study

Political Risk Insurance

Power System

Renewable Energy

State Bank of Viet Nam

Viet Nam Renewable Energy Joint Stock Company

Saigon Investment Group

Standardised Power Purchase Agreement

Technical Vocational Education and Training

Terms of Reference

Viet Nam Applied Technical Company, LTD

Vietnamese Environmental Protection Fund

Wind Turbine Generator

Wind Turbine Technology

List of Tables
Table 1: University degrees with integrated Renewable Energy related courses ............................................. 24
Table 2: Skills for MOIT-GDE ..................................................................................................................................................... 28

Table 3: Training for MOIT-GDE .............................................................................................................................................. 29

Table 4: Skills for EVN .................................................................................................................................................................. 30
Table 5: Training for EVN ............................................................................................................................................................ 31
Table 6: Skills for provincial authority departments ...................................................................................................... 32
Table 7: Training for provincial authority departments ............................................................................................... 32
Table 8: Skills for consultants, project developers and investors ............................................................................. 34

Table 9: Training for consultants, project developers and investors ...................................................................... 34

Table 10: Skills for financial institutions .............................................................................................................................. 35
Table 11: Training for financial institutions ....................................................................................................................... 35
Table 12: Skills for EPC................................................................................................................................................................. 36
Table 13: Training for EPC .......................................................................................................................................................... 36

Table 14: Skills for wind farm operators.............................................................................................................................. 37

Table 15: Training for wind farm operators ....................................................................................................................... 38
Table 16: Skills for universities ................................................................................................................................................ 39

Table 17: Training for universities ......................................................................................................................................... 39

Table 18: Skills for MOIT-HRD department ........................................................................................................................ 40

Table 19: Training for MOIT-HRD department ................................................................................................................. 40

Table 20: Skills for TVET-institutions.................................................................................................................................... 41

Table 21: Training for TVET-institutions ............................................................................................................................. 41

Table 22: Skills for research and development ................................................................................................................. 41
Table 23: Training for research and development .......................................................................................................... 42
Table 24: Capacity development matrix ............................................................................................................................... 44

Table 25: Technicians, engineers, managerial staff needed in the manufacturing sector ............................. 51
Table 26: Jobs and training needed in the installation and construction sector ................................................ 52
Table 27: Technicians and training needed in operation and maintenance ........................................................ 53

List of Figures
Figure 1: SWOT analysis of the wind power market in Viet Nam ............................................................................. 15

Figure 2: Policy making for provincial and national stakeholders ........................................................................... 22

Figure 3: Stakeholder interaction map ................................................................................................................................. 25
Figure 4: Prioritisation and timeline of capacity development measures ............................................................ 47
Figure 5: Wind power value chain segments and supporting processes ............................................................... 49

01
Introduction

10

1. Introduction
Wind energy will play an increasingly important role in Viet Nams future energy supply with its
3,000 km high potential coast line. Estimates of the economically exploitable potential of wind
power in Viet Nam have been made from low 7 GW to high 24 GW, depending on the FIT. The
present FIT of 7.8 US Cents/kWh has demonstrated to be too low to attract new investments for
wind energy projects. Based on a comprehensive study prepared by the IoE, MOIT and GIZ, a tariff
of 10.4 US cents/kWh was recommended which would provide a realistic internal rate of return
for investors.

Together with adequate knowledge from all the

stakeholders, legal, political, and economical
frameworks are essential to reach the targets of the
Power Development Plan (PDP) VII. In order to
identify the education and training needs of all the
stakeholders and to prioritise the capacity building
measures, a Capacity Needs Assessment (CNA) was
commissioned by GIZ. The present study serves as
an overview of capacity needs and suggests
measures that will contribute to alleviating the
needs in the coming years. Together with the
Bac Lieu Wind Farm Nov 2015, photo: GIZ
Ministry of Industry and Trade (MOIT), GIZ will
pick-up a number of the identified needs through its
project Up-Scaling of Wind Power in Viet Nam, funded through the German Climate Technology
Initiative (DKTI) by the Federal Ministry of Economic Cooperation and Development (BMZ).

1.1

Objective

This CNA provides a comprehensive study of the current knowledge and experience in the wind
power sector in Viet Nam and outlines recommendations, mainly based on an extensive analysis
of the different stakeholders in the sector, their tasks and responsibilities. The analysis has largely
been based on face-to-face interviews. The proposed training and education activities are geared
towards reaching the political targets for the expansion of the wind power sector and will in the
long-term contribute to building local knowledge, decreasing the need for foreign expertise.

1.2

Methodology of the capacity needs assessment

The CNA took place in three stages. First, desk research was undertaken giving an insight of the
current situation and comparisons were made with other countries in a similar stage. Secondly,
questionnaires for different stakeholder groups were designed. In total, 63 face-to-face, skype and
telephone interviews with 43 different organizations and institutions were held in Hanoi, Da
Nang, Ho Chi Minh City and other provinces. 1 In the third place, these interviews were the basis
for the in-depth assessment of the capacity needs for stakeholders and the development measures
recommended by the GIZ project team in Hanoi, Viet Nam, and GIZ experts in its headquarters in
Germany.

1.3

Scope of the report

This CNA consists of the following main parts: chapter 2 serves as a short background
introduction to the wind power sector in Viet Nam; chapter 3 provides an overview of the
relevant stakeholders; chapter 4 presents the results of the assessment; chapter 5 displays the
capacity needs matrices, prioritising capacity needs of stakeholders according to their tasks and
knowledge gaps and finally chapter 6 reflects on the potential for local value creation.
1

A detailed list can be found in Annex 7

11

02

Wind Power in Viet Nam

12

2. Wind Power in Viet Nam

Viet Nam has a high and steady increase in power demand as a consequence of its accelerated
economic growth and an increasing demand from households, hence the urgent need for
additional generation capacity with low investment costs. Although Viet Nam possesses good to
excellent wind conditions, only three wind farms with a total installed capacity of 52 MW are in
operation. Many other wind farm projects face substantial market barriers and have remained in
planning phase in the last five or so years.

2.1

Key drivers at an early stage of market development

In order to understand the dynamics of wind power markets in the early stage, valuable insights
can be gained by looking at other countries when these were in this stage. Brazil and China, as
well as South Africa have demonstrated that in a relatively short amount of time (10 years, and for
South Africa even shorter), wind energy can be deployed on a large scale and can compete
economically with power from fossil fuels. Brazil expects about 2 to 3 GW additional installed
capacity per year; China is by now the largest market for wind power in the world; South Africa
has, in less than three years, more than 1 GW of wind turbines operational and another 2 GW in
the pipeline. The development of wind power in those countries was (and still is) accompanied by
a comprehensive capacity development program, supported by relevant universities and local and
foreign advisors. Particularly in China, clear political support was given by the government. Semigovernmental industries started the production of wind energy converters, first as joint venture
cooperation and then as license productions at an early development stage, accompanied by joint
research projects, the establishment of numerous university degrees, as well as technical
vocational skills programmes.
Similar to many other renewable energy markets (and as it has been pointed out in other
publications), these markets also highlight the critical ingredients required for their development:

Political will, if there is a high demand for additional power generation and power supply
security, and if saving of foreign exchange, employment and other local value creation
considerations, environment and climate concerns, and a green or low carbon or
sustainable development are targeted;
Investors need stable political framework conditions, in order to achieve acceptable
Internal Rate of Returns (IRR), ensure the security of their investment, the security of
permanent payment based on a FIT, and the opportunity to transfer profits to the home
country in case of Foreign Direct Investment (FDI), acceptable taxations, etc.;
An industry, often driven by the turbine manufacturers, who see a market for their
products;
International financing or development organisations that support the development of
the national power sector through local resources.

In order to pursue independent development of the wind energy sector, a core group of
knowledge carriers with sound theoretical and practical experience in wind energy are crucial.
Viet Nam has favourable conditions for wind power, yet fitting institutions and a private sector
companies are required to provide the conditions outlined above.

For these, experience and skills are inevitable. Missing experience and practical knowledge in
wind energy utilisation can be acquired through capacity building measures. Socio-economic
considerations such as energy security, employment opportunities, income generation and
development stimuli for the provinces are the key drivers for the wind industry in Viet Nam.

13

2.2

Strengths, Weaknesses, Opportunities and Threats

The SWOT framework was used to identify the opportunities and determine the challenges lying
ahead in order to achieve the PDP VII wind power capacity extension targets. The internal
perspective incorporates all stakeholders from policy making, education and private sector which
are directly involved with the wind power market. The external perspective includes general
environmental, political and economic conditions and other stakeholders influencing the
development of the market.
2.2.1 Strengths

Currently, three wind farms are in operation and many other projects are in planning phase. The
MOIT supports a fast wind energy deployment through the legal system of binding decisions,
agreements can be reached quickly (in theory). The provinces with the most favourable wind
conditions have passed or are in the process of working on Wind Power Development Plans. The
Institute of Energy (IoE), together with a small group of qualified private consultancies, has highly
qualified staff in power planning with knowledge in wind energy. In addition, several
manufactures and other private sector companies working in the wind business are already
established in Viet Nam. The level of education is progressively rising and research activities are
taking place in some key areas across the country.
2.2.2 Weaknesses

Many wind farm projects are delayed for a number of reasons. The CAPEX and OPEX for wind
energy are higher in Viet Nam than in developed wind energy markets (see above on Brazil, China,
South Africa). The current FIT seems to be too low for the current stage of the market. Hence, a
large amount of projects are not bankable. The wind measurements across the country are not
reliable and the quality remains questionable although GIZ/MOIT started a campaign in 2010
with ten wind measurement stations in eight provinces. 2 There is no prediction system making
yield assessments difficult for sound wind farm planning.

Only two wind farms are connected to the grid and operation and maintenance problems have
been reported. Positive practical experiences about wind farm operation have not been shared.
Up to now, there are only a few sufficiently qualified consultants and staff trained on maintenance
of wind farms due to the lack of appropriate training opportunities and the low number of
domestic projects. Furthermore, there is a limit (quantitative and qualitative) in staff in all
administrations dealing with wind energy. Government agencies, provincial authorities, bankers,
investors, do not have much knowledge and hardly any practical experience. Provincial
authorities have a lack of competence for the drafting and adoption of provincial wind power
development plans. All stakeholders rely on international expertise through external consultants
and foreign companies.

A wind grid code has not been published yet resulting in perplexity for the stakeholders regarding
technical quality requirements and balance within the transmission and distribution grid. The
Electricity Regulation Authority of Viet Nam (ERAV), in particular, may still need better
understanding on wind grid codes to be able to base their grant of electrification certificate for
wind energy converter accordingly. ERAV and Viet Nam Electricity (EVN) do not have a clear
picture on how to deal with greater amounts of fluctuating wind power. Their managerial staff
has never visited a load dispatch centre or participated in appropriate expert trainings. The
research work undertaken is not linked to practitioners.
Commercial banks are not yet prepared to provide loans for wind energy projects. No training in
wind energy for bankers has been offered until now. Many PPAs prepared by investors are not
considered bankable since they do not meet the minimum technical, economical, and contractual
requirements.
2

The results can be found on the World Bank website (2015).

14
2.2.3 Opportunities
Viet Nams main asset is the favourable wind condition since it possesses many sites with an
average wind speed of beyond 6.5 m/s. The highest potential areas are on the South central coast,
central highlands and South coast. 3 On one hand, there is an increasing power demand and on the
other hand there is a high wind power generation potential since other domestic resources like
coal and water power are limited. Wind power could meet the fast growing electricity demand
since wind farms can be realized in a time span of three to five years, much faster than
conventional power plants.

There is a degree of political will to further develop renewable energies and to increase their
share in the power generation. General decrees and circulars have already been adopted to meet
specific wind power requirements and a closer cooperation between the central government and
provincial authorities is intended. Provinces can request their share of benefits or could become
investors and project owners through community based project models if they learn to enforce
their interests. Clear industrial policies could support the wind industry development and
encourage local manufacturing based on licensing or joint venture agreements. Increased local
value creation would create job opportunities and lead to lower CAPEX and OPEX. Increased
availability of information would endorse the micro- and macro-economic and environmental
benefits of wind power compared to other fossil technologies.
2.2.4 Threats

The overall wind power market development and the total amount of projects highly depend on
the level of FIT. If political decision makers prefer to avoid the risks of slightly increasing power
tariffs overlooking the potential jobs and value creation that could arise from the wind power
market, the targets of PDP VII will not be reached. For instance, investment decisions about the
production of local components and wind energy converters largely depend on the level of FIT
which in turn significantly influences the overall market potential. 4 Coal power generation could
become more attractive in political decision making, especially if the world market price of coal
continues to decrease in the next years and global climate concerns and environmental
disadvantages are not taken into account.

The transformation of the power sector from a single buyer market to an electricity wholesale
market leaves the question whether, after unbundling, EVN or regional power corporations will
buy wind power according to FIT or PPA for the whole contract period. It is also uncertain
whether EVN will keep the responsibility of the PPAs that have already been signed. Government
institutions, private sector and training institutions may not allocate sufficient human and
financial resources to the wind energy sector. Consequently, it will take time to publish and adopt
the general guidelines that are needed for wind power market development. Commercial banks
will not adopt loan policies with specific wind power requirements and bank employees will not
be trained in assessing project risks and Feasibility Studies (FS). Sufficient local knowledge to
conduct Environmental and Social Impact Assessment (ESIA) for wind farms according to
international standards may not be available and the first projects could get an unfavourable
reputation with the residents and provincial governments due to quality issues or negative
impacts.

3
4

See Annex 1.
The techno-economical potential of wind power is varying from 7 GW at the lowest up to 24 GW, depending on the FIT.

15
The table below illustrates and summarises the most important facts and attributes of the wind
power market development in Viet Nam.

External

Internal

Positive

Many projects planned, first ones in

operation
Ministerial support from MOIT and
first provincial wind power master
plans
Legal binding decision system
First manufacturers and private
sector companies
Qualified power planning staff
Rising level of education and research

Favourable wind conditions

Fast deployment of wind power
possible
Political will behind renewable
energies
Provinces can profit from wind power
Close cooperation between central
government and provincial
authorities
Enhancement of economic
development possible by establishing
a clear industrial policy

Negative

High CAPEX and OPEX, FIT too low to

realise planned projects
Unreliable and unavailable wind data
Insufficient staff in all
administrations, lack of knowledge,
training and information exchange
High dependency on external
consultants, foreign experts and
companies
Difficulty to obtain loans
Unsatisfactory PPAs

Level of FIT not high enough, low coal

price
Unclear regulations due to
transformation of a single buyer
market to electricity wholesale
Insufficient allocation of human and
financial resources for the wind
energy sector
Lack of knowledge in assessing
project risks and FS
Unfavourable reputation of first
projects due to quality issues and
poor ESIA standards

Figure 1: SWOT analysis of the wind power market in Viet Nam

Bac Lieu Wind Farm under construction Nov 2015, photo: GIZ

W
T

16

2.3

Policy for wind power development

The following sub-chapter gives an indication of where supporting policies for wind energy
development are still needed, exchange of experience could be encouraged and guidance
provided.
2.3.1 Political objectives

The targets of the government are laid out in the National Power Development Plan PDP VII for
the period from 2011 to 2020 with the outlook to 2030 (Decision No. 1208/QD-TTg dated 21 July
2011). They aim to increase the installed wind power capacity to around 1 GW by 2020 and to 6,2
GW by 2030.
2.3.2 Insufficient provincial rules and regulations

Provincial authorities stated that Decision 37/2011/QD-TTg and Circular 32/2012/TT-BCT were
issued for the wind energy sector but the electricity law does not mention wind energy. Decision
No. 37/2011/QD-TTg and Circular No. 96/2012/TT-BTC are the most important because they
relate directly to the buying price of electricity from wind power plants. Circular 32/2012/TTBCT describes the implementation wind power projects and Standardised Power Purchase
Agreement (SPPA). Decision No.37/2011/QD-TTg dated 29 July 2011 explains power purchase
responsibility: EVN shall be required to purchase all power generated from wind energy on the
basis of SPPA. The tariff is 7.8 US Cent/kWh, VAT exclusive; subject to VND/USD fluctuation,
meaning that the FIT is indexed in US$ but paid in VND. Currently, 6.8 US Cent/kWh are paid by
EVN and 1 US Cent/kWh should be paid by the Vietnamese Environmental Protection Fund
(VEPF).

Provincial authorities consider these regulations insufficient for their work concerning the
preparation of wind power development master plans and to fulfil their tasks during the approval
procedure for wind farms. Circular No. 06/2013/TT-BCT by MOIT dated 8 March 2013 stipulates
content, sequence, procedures for appraisal and approval of national and provincial wind power
development plans. 5

GIZ prepared together with IoE a Proposal for an Appropriate Support Mechanism for Wind
Power in Viet Nam suggesting a FIT of 10.4 US Cents/kWh for onshore wind farms, paid through
one entity (not split between EVN and VEPF).
2.3.3 Investment security and guarantees

To secure foreign investments, the National Assembly of Viet Nam passed the new Law on
Investment No. 67/2014/QH13 on November 26th, 2014 (New LOI), and the new Law on
Enterprises No. 68/2014/QH13 (New LOE), which replaced the previous laws as of July 1st, 2015.
It is assumed that the following paragraph of the old law still applies: "Foreign investors shall be
permitted to remit their profits annually at the end of the financial year or upon termination of
the investment in Viet Nam after their tax obligations in Viet Nam are fulfilled".

Regarding capital arrangement for the projects, the Ministry of Finance shall provide guarantees
to the investor for foreign loans in accordance with the provisions of the Law on Public Debt
Management and Decree No. 15/2011/ND-CP dated February 16, 2011 on provision and
management of Government guarantee; and for domestic commercial loans, the State Bank of Viet
Nam shall direct domestic commercial banks to allocate sufficient capital to the investor
according to the actual need of each project. 6 MOF provides guarantees if ODA-funds are given (i.e.

Compare with MOIT (2015).

GIZ and IoE propose to target different types of investors to develop the Vietnamese wind power market: a) Highly
subsidized investors like international donors with the objective to develop wind power; b) Strategic investors like
turbine manufacturers, which may reach an IRR of up to 6% due to internal cross-subsidised financing and c) Fully
5
6

17
KfW-funded Phu Lac project), but not for commercial bank loans. Commercial banks have not
financed a wind farm at their own risk yet. It is not clear if commercial investors would need to
request state guarantees to secure their investments.
2.3.4 Grid capacity

The Prime Minister issued Decision No.2414 in 2013 amending the list and schedule of a few
power transmission grid and resource projects, providing special mechanisms and policies on
investment in urgent power projects to meet demands up to 2020. This applies for urgent
transmission grid projects but not for wind energy projects. However, wind farm projects in
accordance with Provincial Wind Power Development Master Plans do not have problems with
grid connection yet. A strong increase in wind power projects after 2020 may request more action
concerning grid extension planning.
2.3.5 Grid codes

Investors and operators need clear regulations on how to operate a wind turbine in the power
grid. Concerning grid codes, there is Circular No 12/2010/TT-BCT by MOIT dated 15 April 2010
on transmission systems and Circular No 32/2010/TT-BCT by MOIT dated 30 July 2010 on
distribution systems. However, the wind grid code for distribution systems is not published in the
form of a Circular yet. A wind grid code for the transmission system is not even under preparation
since it is assumed that current smaller projects with less than 100 MW will solely be connected
to the distribution grid.
2.3.6 Other support mechanisms

Import tax exemption for equipment which is not domestically manufactured could be initiated.
There could also be a corporate income tax with either a 10% tax rate for the first 15 years and a
possible extension up to 30 years or an exemption for the first 4 years and 50% reduction for next
9 years. A fast depreciation mechanism, 1.5 times faster than normal projects, could be set up
followed by the exemption of land-use tax, charges and environmental protection fees.

2.3.7 Findings

Exchange of experience on a governmental level about successful political framework conditions

with other countries and meetings between the national government and provincial authorities
could facilitate further design of supporting measures for wind energy development. In general,
the wind power sector faces many challenges, but more and more stakeholders are realising the
potential and the importance of wind energy for Viet Nam. The market development could be
significantly accelerated by clear and defined political signals. In the short term, it is highly
important to increase the FIT and, as a result, the amount of projects. In parallel, training and
education will become increasingly important. Lack of knowledge is identified for almost all
stakeholders and is described in detail in the next section.

commercial investors. It should be considered, however that investment projects in a new sector will require a higher
rate of return in the beginning, eventually at about 15%, due to higher risks.

18

03

Description of Stakeholders

19

3. Description of Stakeholders
The tasks and functions of the most important stakeholders for wind energy development will be
described in this chapter to compare, based on face-to-face-interviews, the capacity needs to their
current skills.

3.1

Policy-making, administration and regulation

3.1.1 National level

Ministry of Industry and Trade - General Directorate of Energy / Department of New and
Renewable Energy - MOIT-GDE and DNRE
MOIT-GDE, supported by their New & Renewable Energy Department, issues policies and
develops legal frameworks to support mechanisms for RE projects, including grid-connected wind
energy projects. They share responsibility with the MOIT-Planning Department for the national
and provincial grid connection wind energy planning. To seek approval, they have to submit the
power development plans of provinces to the Minister under the direct management of the
central government. They approve wind energy projects that have an installed capacity of more
than 30 MW. A list of planned power projects is published to attract investments in the wind
energy sector, and outlines the development of power transmission and distribution networks in
order to harness electricity from renewable energy sources.

MOIT-GDE coordinates advisory meetings of relevant ministries, such as MPI, MOF, MONRE,
MOST, MOET and MOC, and invites independent consultants when preparing, drafting or
reviewing strategies, policies, circulars or decrees and decisions on renewable energies. The
DNRE provides advice to the MOIT regarding the inclusion of renewable energies in national
power development plans (like PDP VII). The DNRE advises MOIT in reviewing circulars that
guide the implementation of the Governments and Prime Ministers decrees and decisions and
MOIT refers to the Prime Minister for approval. Additionally, the DNRE also gives advice to the
MOIT on how to manage energy production, mechanisms and policies on electricity tariffs. The
director of the Renewable Energy Department relies on only one experienced staff. Consequently,
the director and his staff depend on inter-ministerial/inter-departmental knowledge, advice from
the IoE and recommendations of external wind energy experts.

Ministry of Industry and Trade - MOIT Planning Department

Their task is to review the national as well as provincial wind power development master plans
and prepare incentive mechanisms for wind power development. They search for optimal
solutions on grid integration and power grid (substation and transmission lines) investment at
localities in the provinces to ensure power supply. The department commissioned a study about
the reasonable share of wind power for the Vietnamese power system that could ensure supply
security and appropriate retail electricity prices.

Electricity Regulatory Authority of Viet Nam - ERAV

ERAV is responsible for the regulation and monitoring of the electrical grid. Regarding wind
energy, they grant electricity licenses for national grid-connected wind energy projects on the
basis of the newly developed wind grid code, ensuring the stability of the electricity grid. They
also monitor power purchasing agreements which are agreed between EVN and individual project
owners. ERAV reviews technical circulars and regulations for the power sector and makes
proposals regarding the inclusion of wind power into those documents to give guidance to
stakeholders on central and provincial levels to develop new wind energy focused circulars.
Nowadays, they are supported by GE who is doing a renewable energy integration study' which
aims to develop wind power as a reliable energy source into the national grid. The study will
provide valuable insights into grid stress and stability and will evaluate the reliability of long term
wind forecasting. ERAV will then have to formulate and publish the wind grid code document as
an official circular. Close communication with the EVN-Load Dispatching Center is necessary.

20
Ministry of Finance MOF
The MOF is responsible for regulations on tax and duties related to wind power, tax exemptions
for wind farm projects and import of wind turbines or components which largely influence the
CAPEX. They consider the impact of foreign debt development depending on the different
investment projects. Foreign debt and reserve of foreign currency development influence
decisions in the energy sector. The more jobs are created in the power sector, the more income
tax will be generated.

MOF has to deal with state guarantees on request which, up to now, have only been needed for the
Phu Lac and Bac Lieu projects. Guarantees could either be an unpaid loan or a Political Risk
Insurance (PRI), which may cover the risk of project owners losses as a result of policy change
regarding the FIT. MOF also calculates and allocates the Environment Protection Fund donations.
This fund pays 1 US Cent/kWh on top of the 6.8 US Cents/kWh paid by EVN 7 to support the
electricity price of the State for grid connected wind power projects. They have to review the FIT
proposal which is prepared by MOIT who is then in charge of communicating the results to the
PM. MOF will comment on all potential impacts of the FIT on public finances: i.e. impact on debts
of EVN; increase in electricity costs for state units (state own companies, community facilities like
public hospitals, police stations, public street lighting, etc.), and eventually higher subsidies for
the poor.

Office of the Government - OoG

The OoG, a ministry-level agency, assists the PM with advice and comments on regulations and
circulars prepared by line ministries (such as MOIT). According to local senior experts, the OoG is
very influential regarding the decision-making of the PM. Staff of the OoG, responsible for energy,
have considerable knowledge of the conventional power sector.

Viet Nam Electricity - EVN

EVN is the single buyer of wind power and has to purchase all the power generated from wind
farms and negotiate the SPPAs. However, after the wholesale market has come into operation, it
has not been decided whether EVN will remain the single buyer of wind power or if regional
power companies will have to purchase power from wind farms located in their supply area.
Moreover, it has not been determined whether EVN will be bound to the contracts or whether the
SPPAs will then be transferred to regional power companies.

EVN, respectively their subsidiaries like the National Power Transmission Corporation, are
responsible for providing transmission lines and ensuring the integration of the wind farms to the
national grid. This has to be in accordance with the wind energy planning and power
development planning previously approved by the Government. It has the obligation to connect
the wind farms to the grid once the wind farm owner has connected his farm to the entry point.
Cost for substations and cables to the entry must be covered by the wind farm owner in
consultation with the EVN regional power corporation. EVN has to comment on wind power
development master plans to MOIT during the preparation stage. EVN develops, together with
ERAV, a wind grid code for the distribution system with the technical assistance of GE and a grant
from USTDA.
Viet Nam Electricity / National Load Dispatching Centre / Power System Analysis and
Planning Department (under NLDC) EVN / NLDC / PSAPD
The centre is responsible for guiding and managing power generation, transmission and
distribution activities within the national grid to achieve optimal technical and economic
effectiveness, ensuring uninterrupted and safe operations of the national grid.

FIT agreement, see circular 96/2012/TT-BTC of June 8th, 2012.

21
Viet Nam Electricity / Power System Analysis and Planning Department (under NLDC)
EVN / PSAPD
The department undertakes power planning for up to five years ahead. They collect data from
wind farms, analyse power flow simulations, Power System (P/S) stability and P/S system
simulations.

3.1.2 Provincial level

Provincial Peoples Committee PPC
PPC has the responsibility to call on investment, publish, implement, supervise, monitor and
report to the MOIT on the implementation of the provincial wind power development master
plans. They can also guide the preparation of these master plans. PPC encourages private, state
owned or foreign social resources for wind power investment. They give instructions to other
provincial departments to prioritize wind energy exploitation and provide administrative support
for project preparation and implementation. PPC aims to optimise the land use and harmonise
different interests, e.g. mining has the priority over any other construction project in compliance
with the mineral law. 8 PPC approves the Investment Certificate, ESIA and project land/water use.

Department of Industry and Trade - DOIT

DOIT supports PPC in the development of wind power master plans, in particular in the fields of
monitoring, supervision and implementation. PPC has the responsibility for the budget required
to develop provincial wind master plans. PPC asks DOIT to develop a master plan which leads to
DOIT hiring a consultant to draft this plan. DOIT hosts the review meetings with different
departments for the basic design of projects smaller than 30MW.

Department of Construction - DOC

DOC administrates construction management and reviews project proposals Pre-FS for project
investment. It also reviews and comments on civil design of the wind power projects. DOC
monitors related construction works during project implementation, advises the PPC in awarding
construction permits and joins the review of the basic design in a meeting chaired by DOIT.

Department of Natural Resource and Environment DONRE

DONRE advises PPC on land and water use requests of investors and project owners. It reviews
EIA/ESIA documents and submits them to the PPC for approval. DONRE monitors the
implementation and inspection of the Action Plan approved EIA/ESIA. DONRE also joins the
review of the basic design meeting.

Department of Agriculture and Rural Development - DARD

DARD administrates agriculture, forest, fishery and clean potable water supply. During the
approval phase for investment plan, DARD gives advice to the PPC on the impacts of wind power
in DARD-related sectors. DARD joins reviews in EIA/ESIA approval meetings chaired by DONRE
and also joins the review of the basic design meeting.

Department of Planning and Investment - DPI

The DPI administrates planning, master planning and investment. It provides support for
investors during the application phase for investment certificates and prepares the application
that PPC has to approve. DPI monitors and reports on wind power investment activities to PPC.
DPI also joins the review of the basic design meeting.

See Law on Minerals No. 60/2010/QH12.

22

Overview of policy making and implementation at national and provincial level

Figure 2 illustrates the position and the dependencies between the stakeholders in the overall
national and provincial policy making and policy implementing structure.

Prime Minister

Government Office
Government

other Ministries, MOF

DNRE

EVN
National Load
Dispatch Center
(NLDC)

MOIT
MOF
GDE
DNRE

MOIT

GDE

ERAV

Generation

PPC

National Power
Transmission
Corporation

Distribution
Companies

Ministry of Industry and Trade

Ministry of Finance
General Directorate of Energy
Department New &
Renewable Energy
ERAV Energy Regulatory Authority of
Vietnam
EVN Electricity of Vietnam
PPC Provincial Peoples Committee

Provincial
Peoples
Council

DOIT

DOC, DPI,
DARD, DONRE

DOIT Department of Industry and

Trade
Department of Construction
Department of Planning and
Investment
DARD Department of Agriculture and
Rural Development
DONRE Department of Natural
Resource and Environment

DOC
DPI

Figure 2: Policy making for provincial and national stakeholders

23

3.2

Private sector

3.2.1 Consultants, project developers and investors

Investors, project developers and consultants are key drivers in the wind power business. Project
developers and consultants mostly belong to smaller companies and are usually engaged by
project investors or owners. Project developers are responsible for the entire project preparation
and approval processes while interacting with land owners, local authorities, grid operators and
banks. They prepare all the documents for the tendering processes and monitor and supervise the
construction period on site until the wind farm commissioning takes place. Not all the processes
can be covered by project developers, therefore, various individual consultants and companies
are subcontracted to provide additional services. A few national consultants and project
developers are already working in the Vietnamese wind energy sector. However, the Vietnamese
market currently extensively depends on the input of international experts.

3.2.2 Commercial banks and development banks

Banks play a crucial role in the realisation of wind projects. Project investors have to provide a
certain share of equity but the major share of initial project CAPEX is covered by bank loans.
Banks assess all the project documents, conduct a risk assessment and decide on the project
feasibility before offering loan conditions to the investor. Sometimes external consultants advise
banks during the project assessment when the staff does not have specific knowledge on wind
power projects. Currently, all projects are financed by development finance institutions and they
can usually offer loans with lower interest rates. Thus, the first projects in a developing market
are financially more feasible for investors. In order to enable high market growth, a future
involvement of commercial banks is inevitable since they have larger financial capacities and can
supply the market with larger credit volumes.

3.2.3 EPC companies

Engineering, Procurement and Construction (EPC) companies offer a wide range of activities and
services, for instance civil works and grid connection tasks, including turbine transportation, site
construction, installation services, production of electrical equipment, ground works and cabling.
While grid connection processes for wind energy turbines do not differ significantly from any
other power plant connection, turbine transportation and installation requires special equipment
and tools (e.g. heavy cranes). Large cranes are rarely available in Viet Nam. Depending on the size
of the turbine and tower, a few national companies were identified for road and ship
transportation, e.g. Huy Hoang Transportation and Logistics. 9 International experience shows that
EPC services possess a high potential for local value creation in early market development stages.
Therefore, it can be expected that an increasing number of local EPC companies will extend their
business activities to the wind power market in parallel with upcoming projects. 10

3.2.4 Wind farm operators

On average, an operating phase of 20 years is assumed for wind farm projects. Technical and
administrative operation and maintenance (O&M) is conducted or supervised by small or
medium-sized companies. Qualified technical staff is essential to adequately operate turbines, to
optimise power production and turbine lifetime while minimising downtime and failures. O&M
experts are hardly available in Viet Nam due to the early market phase. In the case of Bac Lieu
wind farm, the operational staff were trained by international experts from GE, the provider of the
turbines of this particular wind farm.

Compare with GIZ (2016).

Compare with GIZ (2016).

10

24

3.3

Training, education and research

3.3.1 Academic training / universities

HUST (Hanoi University of Science and Technology), University of Da Nang, Ho Chi Minh
University of Technology and EPU (Electric Power University) are the four of leading technical
universities with international relations and partnerships. They offer general courses on
renewable energy and possess small laboratories.

In total, there are 20 universities in Viet Nam offering related courses in renewable energy and/or
research in wind power, generally run by the electrical power system institutes. The renewable
energy courses are part of bachelor or master degrees in environmental, energy/electrical
engineering and environmental resource economics as shown in Table 1. However, they usually
only account for 2 to 3 credits, a minor part of a 150-200 credit degree. The quality of the courses
is limited.
Table 1: University degrees with integrated Renewable Energy related courses
Degrees that include RE courses
Environmental Engineering
Energy/Electrical Engineering

Environmental Resource
Economics

Universities
Can Tho University
National University of Civil Engineering
EPU Electrical Power University
HCMC University of Technology and Education
HCMC University of Industry
HCMC Private University of Technology
Thai Nguyen University of Technology
HUST Hanoi University of Science and Technology
USTH Viet Nam-France University of Science and
Technology
College of Economics-Hue University

The only existing full renewable energy degree is offered by the French-Vietnamese University of
Science and Technology of Hanoi (USTH). This is a master degree in renewable energy with two
courses on wind energy provided by two short-term lecturers from France. They will start
sending students to France for energy master degrees for the training of future researchers and
lecturers.

Both the Hanoi University of Science and Technology (HUST) and EPU are currently working on
the development of renewable energy courses. From September 2015, EPU started the first
intake for a renewable energy bachelor course which is expected to have around 50 students.
Greater support for teaching resources and laboratories was requested by the lecturers of this
course. In 2016, HUST is looking at launching a renewable energy master course that will cover
wind energy topics for approximately 20 students. The project is supported by the World Bank.

3.3.1 TVET institutions

Technical and Vocational Education and Training (TVET) are necessary to provide qualified
workforce for the labour market and with practical knowledge and skills. TVET institutions can be
associated to universities or high schools. Large companies or public institutions usually also have
internal TVET departments.

In the energy sector in Viet Nam, EPU offers TVET courses aligned with the needs of EVN.
International companies like GE, Vestas, Enercon, and organisations like GIZ also play an
important role in vocational training since specific knowledge on wind energy is hardly available
in Viet Nam. The ministerial supervising body for sector-specific training and education is MOIT
HR. Their task is to ensure the provision of a sufficient workforce in order to achieve PDP VII
targets. During the interviews, it was argued that a HR wind master plan is in preparation.

25
3.3.2 Research & development
According to GIZ internal studies, research on wind power is done in one or the other way at 17
universities and research institutions across the country. More than 20 researchers with expertise
in electronics, mechanical/civil/aerospace engineering, economics, oceanology, meteorology and
hydrology have been working on wind power related topics.

Technical research is undertaken on effective design, operation and management solution for
wind power systems, design of synchronous permanent magnet for wind energy applications and
the design and manufacturing of wind and solar power combining systems, etc. Meteorologists
explore the potential of wind and the changes experienced with summer wind activities in the
context of climate change. The assessment of wind energy resources and the ability to exploit
wind energy on Vietnamese land are also being analysed. The impacts of climate change policies
on international energy markets, the challenges faced by Viet Nam when developing wind power
and the methods to measure the price of wind power are being evaluated by economic and
political institutions.
Although a lot of research in various fields of wind power can be found, the scale and the quality
of the work undertaken cannot be certified.

3.4

Stakeholders in the wind sector Overview

Figure 3 illustrates the influences and synergies between the various stakeholders. It shows how
they interact in three main clusters: capacity building, legal and regulatory framework and
technology cooperation.
State

Private

State-owned companies

Investors

Other

Donors

Capacity Building
Civ Soc
Local
banks

Wind
Assoc

FhGIWES
MoST

DEWI

Project
developer

EtC

TVET

Consul
-tants

DNRE

Universities

Lnvestors
trojectowner

ttC

hoD

Have a significant influence on the

process to reach the targets set in
PDP VII for wind energy

Primary
Stakeholder

Beneficiaries of a wider deployment

of wind energy

MoF

DoIT

Secondary
Stakeholder

DoNRE
MoNRE

EVN&
NPTC

Key
Stakeholder

GDE

PEP

Arrows symbolise the dominance of

one actor over another

ERAV

Technology
Cooperation
IoE

Legal and
Regulatory
Framework

AHK

MPI

Solid lines symbolise close

relationships in terms of information
exchange, coordination, etc.
Capacity
Building

Here the institutions listed are the

ones who have been interviewed
and who have requested Capacity
Building

MOIT
GDE
DNRE

Ministry of Industry and Trade

General Directorate of Energy
Department of New and Renewable
Energy
Provincial Peoples Committee
Provincial Department of Industry
and Trade
Office of the Government
Ministry of Finance
Ministry of Planning and Investment
Institute of Energy
Vietnam Electricity
National Power Transmission
Corporation
Vocational Training Centers
Engineering, Procurement,
Construction
Electricity Regulation Authority

Turbine

Manuf.

PEC
C3
Commer
cial
investors

MOIT

Key

KfW Primary
WB

USAI
D

Secondary

PPC
DoIT
OoG
MoF
MPI
IoE
EVN
NPTC
TVET
EPC
ERAV

Figure 3: Stakeholder interaction map

Important but only temporarily

involved

26

04

Results of the Assessment:

Capacity Needs at all Levels

27

4. Results of the Assessment: Capacity

Needs at all Levels
Based on the stakeholder analysis and as an outcome of the face-to-face-interviews, the following
chapter describes the skills needed to enable more effective work. Recommendations for capacity
development measures for the different stakeholder groups are presented. A short synopsis of the
training content is provided and a first prioritisation is given. The proposed prioritisation is based
on experience and judgement after interviewing relevant wind sector stakeholders and GIZ
experts in Viet Nam. High priority (HP) skills are most urgently needed in Viet Nam and their
development would greatly impact the wind sector. Medium priority (MP) skills are also
mandatory to achieve PDP VII targets. In contrast to HP skills, pre-conditions to self-develop these
MP skills are needed and the development of these skills can be slightly delayed. Low priority (LP)
skills are also needed to fulfil PDP VII targets but their impact is considered to be much lower.
They can be developed in parallel to more urgently needed capacity development measures
through existing Vietnamese education activities or training programs.

Specific capacity development measures are closely linked to skill development. However,
establishing specific skills usually requires time. Repetition and practice are always needed and
therefore an appropriate timeline has been established below. Skills that can be assimilated
through capacity development measures in a period of one to three years are considered shortterm (ST); measures carried out in a period of three to five years are described as medium-term
(MT) and measures carried out over an even longer period are presented as long-term (LT).

4.1

Policy-making and regulation at national level

4.1.1 MOIT-GDE organisational and individual level

Wind farms can be implemented in a much shorter period than many other power plants. This
has a significant importance in view of the fast-growing power demand. It is recommended that
MOIT initiates and moderates meetings between concerned ministries to support a wider and
faster wind energy deployment. MOIT-GDE-DNRE may lead discussions with other ministries to
initiate policies to attract investors, set off national system component production, guarantee
payment of the remuneration over the contracted period and secure grid upgrades and
extensions for a faster deployment of wind energy. Nowadays, a strong governmental support
through direct engagement in pilot wind farms would create valuable opportunities to gain
experience and learn on the job. Leadership skills are crucial to play a prominent role in political
decision making processes and support other ministries in the development of strategies.

To support the formulation of political, legal and economic framework conditions, staff of
concerned ministries should have a good understanding of the wind energy sector. All the
departments need additional workforce, they are heavily under-staffed. At the moment there is
only one individual working on wind energy at MOIT. The workload will increase in parallel with
the expansion of wind power.

The set targets of PDP VII of increasing the installed wind power capacity to 1,000 MW by 2020
and to 6,200 MW by 2030 are very ambitious. There are different wind farm projects under
preparation, but even if the FIT would increase, additional time might be needed to mobilise
financing. MOIT-GDE-DNRE will have to monitor the targets of PDP VII concerning wind energy
development. In order to manage this task, it would be important to improve the understanding
of different policy mechanisms and supporting measures that have been successfully
implemented in other countries.
In order to monitor the pace of expansion and remove the fear of a too rapid expansion, staff
should be trained in (and subsequently be supported in developing) monitoring systems for
renewable energy expansion. This way, it can be assured that costs are under control and

28
technical issues such as grid capabilities taken care of. To that end, MOIT-GDE-DNRE should also
intensify cooperation with provincial authorities for their training and wind energy planning.
Within MOIT-GDE-DNRE, there is a need for faster and more effective access to information
required to prepare meetings and drafts.

General training in political target-setting, policy-making, energy sector planning, etc. could be
usefully provided. Strategies for local and foreign investment and the development of a concept
for local component production could similarly be supported. The formulation of a long-term grid
extension strategy and the development of a strategy for strong governmental support for pilot
wind farm projects (loans, guarantees, and surcharge on FIT) could be initiated. International
experts and politicians can provide feedback and advice on their experience in cooperating with
different ministries. The table below puts together the required competencies for the MOIT-GDE
and classifies the skills in priority areas.
Table 2: Skills for MOIT-GDE
Skill n
S1
S2
S3

S4
S5

S6
S7
S8
S9

11

Stakeholder: MOIT-GDE
Leadership skills

PriorityTimeline
LP - LT

Understanding of advantages and challenges of wind energy

HP - ST

Decision making under uncertainty

MP - LT

Understanding of wind energy basics 11

Monitoring of policy and incentive schemes

HP - ST

HP - MT

Capability to appraise impact of policy measures

LP - MT

Communication skills

LP - MT

Capability to review FIT considering decreasing CAPEX and OPEX

Knowledge management

Compare with skill S15.

HP - MT
MP - ST

29
Table 3: Training for MOIT-GDE
Proposed training format
Skill n
S1.a
S1.b
S2.a

S3.a 12

Involved stakeholders

Start

1-week intensive leadership training

on planning, organising, setting
objectives, taking responsibility, etc.

2 MOIT-GDE-DNRE, 20 PPC,
20 DOIT (always head and
staff); max. 15 participants
per training

2016 and 2017, repetition

every 3 to 5 years,
refresher every 5 years

1-day high level ministerial meeting,

presentations and open discussions
(discussion round and site visit)

MOIT, MOF, MOET, MPI, MOC,

MONRE, consultants;
25 participants

1st meeting in 1st half of

year of the project, annual
meetings up to 2019
recommended

2 inter-ministerial meetings with

coaching

5-day workshop and 1-day site visit in

Bac Lieu to discuss about planning, grid
integration, operation and
maintenance with the operators of the
wind farm

S4.a

3-day compact workshop on decision

making under uncertainty covering
influence diagrams, decision trees,
scenario analysis, regret scores

S5.a

1-week intensive training alongside

advisory process to set up monitoring
system

S6.a
S7.a

S8.a
S9.a

12

Format

2 days of meetings on ministerial level

with consultants at international wind
energy conferences / study tours to
India, China, RSA or Germany
1-day meeting with experts
responsible for calculating present FIT
proposal or advising adaptations of FIT
in other countries according to
improved technology
2 times 3-day trainings in
communication, combined with 2
additional days of organisation
management

3-day workshop on knowledge

management, organisation of a
database and personal technical
coaching in establishing a database

Compare with skill S15 and proposed training S15.a.

MOIT GDE DNRE, OoG,

MOF, MOC, EVN, BIDV

Newly recruited staff for

MOIT-GDE-DNRE, staff of
provincial departments,
bankers, consultants,
investors, lecturers, EPCcontractor; 4 trainings with
up to 25 participants in 2016,
later 2 trainings per year
20 national and provincial
policy makers (MOIT, MOF,
MOET, PPC, DOIT); 30 private
sector (ERAV, EVNNLDC,
banks, investors); 10
education / research
(universities, TVET); max. 20
participants per workshop
Management and staff of
MOIT-GDE-DNRE,
Management and staff of PPCs
and DOITs (and newly
recruited staff if any);
20 participants
MOIT-GDE-DNRE,
consultants; 2 to 5
participants

2 MOIT-GDE-DNRE, 2 OoG, 1
MOF, 15 consultants;
20 participants in total
2 management and staff of
MOIT-GDE-DNRE, 13 DOITs
and 50 other provincial
authorities;
15 participants per training

MOIT-GDE-DNRE, eventually
DOIT;
2 to 5 participants

2016, 2017 and repetition

2016, 2 in Hanoi, 2 in the

provinces, organised soon
after the arrival of new
staff
Repetition every 2nd year
for MOIT-GDE
1st year, then every 2nd
year

1st training in 2016,

refresher course in 2017
and repetition of a 2-week
workshop in 2018
Every 2nd year MOIT
meets experts at
international wind energy
conferences

1st meeting in 2017, next

meeting every year or 2nd
year depending on turbine
technology development
2 trainings in 2016 and 1
annually up to 2019

In 2016; structured
according to DNRE staffs
availability (about 2 days
every month)

30

4.1.2 Ministry of Finance - MOF

It is assumed that MOF may need more information on all cost-relevant issues of wind energy
which have an impact on public finance. Therefore, MOF shall be invited to participate in capacity
development measures and expert meetings prepared for MOIT and consultants dealing with this
topic. It has already been recommended to invite MOF to participate in different training
programs listed under section 4.1.1 MOIT-GDE organizational and individual level

4.1.3 Office of Government - OoG

The OoG comments on government decisions before they are signed by the PM. Concerning wind
power, the OoG mentioned that seeking measures to reduce CAPEX and OPEX and not only focus
on increasing the FIT is important. However, there are no clear strategies and ideas on how to
reduce CAPEX and OPEX in the near future. It is advised to organise expert discussions with
different stakeholders and ask the OoG to present their ideas and strategies to bring more wind
energy projects into operation in the near future. Ideas on opportunities to reduce CAPEX and
OPEX in the medium and long-term and strategies to reach this cost reduction should also be
presented. It is already recommended to invite OoG to respective expert meetings (see section
4.1.1).

4.1.4 Viet Nam Electricity - EVN

EVN has to purchase all the power generated from wind farms and therefore comments on the
wind power development master plans of MOIT during the preparation stage. It also has to
negotiate the PPAs. EVN and its subsidiaries have the responsibility for grid operation including
grid upgrading and extension. The different departments, namely EVN-NLDC, NLDC-Power
System Analysis and Planning Department as well as EVN Department of Power Market
Management do not have experience with large amounts of fluctuating wind power in the grid.

EVN-NLDC requested an exchange of practical experience between Vietnamese grid managers

from NPTC and regional power companies and consultants with experience in successful
deployment of wind energy. EVN-PSAPD expressed their training needs concerning small signal
stability, reactive power and related technical aspects.
Table 4: Skills for EVN
Skill n
S10
S11
S12
S13
S14

13

Stakeholder: EVN

Knowledge to comment on wind power development master plans

Knowledge regarding PPA negotiations, including all force majeure and

arbitration issues
Capability to negotiate on compensation for losses caused by eventual increase
of FIT and compensation for investments in grid upgrades/extensions due to the
steady increase in wind power 13
Management of the grid integration of fluctuating wind power
and management of power grids with a large share of fluctuating wind power
Practical experience on grid management

It is assumed that skills S10, S11 and S12 are already established at EVN.

PriorityTimeline

LP
LP
LP

MP - ST

LP - MT

31
Table 5: Training for EVN
Proposed training format
Skill n

Format

S11.a

Several 1-week trainings with relevant

stakeholders

S13.a

2 times 1-week workshops on grid

integration, grid stability, grid
management, load dispatch specialised for
14
highly technical staff

S14.a
S14.b

5-day study tour abroad including 1 site

visit to a load dispatch centre with high
quantity of wind power in the power grid
a specialised workshop on grid codes and
grid management
2-day training on small signal stability,
reactive power and related technical
aspects

Involved stakeholders
EVN legal advisors, PPA
negotiators
MOIT and ERAV
2 EVN-NLDC, 2 NLDC-Power
System Analysis and Planning
Department, 2 EVN Department
of Power Market Management, 5
NPTC and regional power
corporations 15 university
lecturers, 8 DOSTs, 2 ERAV,
consultants; 18 participants per
workshop

Start
2016

In 2017/2018
and repetition
2 years later

EVN-NLDC, NPTC, regional

power companies, consultants;
15 participants

2017 and 2020

EVN-PSAPD

2017

4.1.5 Electricity Regulation Authority of Viet Nam - ERAV

ERAV formulates and publishes technical circulars concerning wind energy which apply to the
wind grid code document published as an official circular. A close communication with the EVNLoad Dispatching Centre is necessary. ERAV technical staff is recommended to be trained together
with EVN-NLDC staff (see section 4.1.1). ERAV is developing a wind grid code for the distribution
system with the support of GE. It is recommended to support ERAV in drafting and publishing an
instruction sheet which allows governmental and provincial staff and approval authorities to
understand details of the wind grid code.

4.2

Policy-making and regulation at provincial level

In Viet Nam, provincial authorities play a crucial role in the whole approval process for wind
energy projects. To date, these authorities depend on the advice of consultants and have to trust
the documents of the investors. Most of the time, they are only capable of checking whether the
key data of the investment plans are in compliance with the wind energy development master
plan of their province, if such a plan has already been approved. A proper assessment of the
technical or economic viability of a proposed wind park is currently not possible at the provincial
departments due to a lack of (qualified) staff.

The Departments of Industry and Trade (DOITs) in the provinces where there are satisfactory
wind conditions need to recruit one or two staff responsible for wind energy. They should have
good knowledge in renewable energies, specifically in the wind energy field in order to advise the
PPCs. The staff currently working in provincial authorities has not participated in any renewable
energy courses and therefore has limited wind energy specific skills and knowledge.

Provincial authorities claim that guidelines for local authorities on how to implement policies and
support mechanisms and how to conduct planning for wind energy development are insufficient.
They require additional directives and regulations to overcome existing insecurities on how to
manage the whole approval process and how to guide the development of wind energy in the
provinces.
14

Description of potential content in Annex 3.

32
There is a lack of experience in the assessment of wind energy potential and the appraisal of gridconnected wind energy projects at the provincial level. Provincial authorities often only have the
capability to verify compliance of the documents provided by investors with the provincial wind
energy development plan on mere quantitative criteria (i.e. size of wind farm). A well-established
information system is lacking which would allow an effective flow of information between
provincial authorities of different provinces. Provinces which already have an approved wind
energy development master plan could support other provinces in the process of drafting and
implementing such a plan.

As the wholesale market replaces the present single buyer market, it has to be ensured that grid
extension, connection and upgrades are made in due time according to the statements in the
national and provincial (wind) power development plans. DONRE and DARD lack information
concerning possible negative impacts on fishery, birds, forest and land use and also concerning
possible positive impacts on livelihood. PPCs often have to deal with conflicting land use rights
with owners, tenants, farmers, fishermen and different provincial departments.
Table 6: Skills for provincial authority departments
Skill n
S15
S16
S17
S18
S19
S20
S21
S22

Stakeholder: Provincial authority departments

Priority-Timeline

Understanding of wind energy basics 15

HP - ST

Ability to draft and implement guidelines for wind farm approval process

HP - ST

Ability to assess investors documents during the planning and approval

process for wind farms
Capability to establish and guide interdisciplinary working groups and to
build up and maintain information channels between provincial authorities
Capability to draft / implement provincial wind power development master
plans

HP - MT

MP - MT
MP - MT

Capability in integrated and strategic planning for power grids

LP - ST

Assessment of ESIA and positive impacts of wind farms pertaining to

livelihood

MP - ST

Capability to use additional methods in conflict management

LP - MT

Table 7: Training for provincial authority departments

Proposed training format
Skill n

S15.a

S16.a

S17.a

15

Format

Involved stakeholders

Start

2 trainings / workshops in provinces 6

days each on wind energy basics general
introduction of the situation in Viet Nam,
1 additional day for a site visit in Bac Lieu
to discuss about planning, grid integration,
operation and maintenance with the
operators of the wind farm

Management and staff of

provincial authorities (and
newly recruited staff)

1st 6 months in 2016

2-day moderated expert workshop for

joint preparation of amendments to
existing regulations and/or drafting of
additional circulars for the wind power
sector

5-day workshop on wind farm planning

Compare with skill S3.

DOIT, PPC, other provincial

departments, MOIT-GDEDNRE, consultants, project
developers, bankers;
2 workshops with 20
participants each time
15 managerial personal and
staff of provincial
authorities meet with
investors/developers and
consultants; max. 20 per
workshop

1 in 2016 and 1 in
2017
Workshop series
should start in 2016,
8 workshops within
the next 3 years, (for
~10 provinces)

33

S17.b

S18.a

S19.a

S20.a
S21.a
S22.a

4.3

1 to 2-day regular dialog fora/workshops

to find agreements on requirements
concerning quality and informative value
of all documents investors have to present
to provincial authorities
2 times 3-day workshops in
communication, combined with 2
additional days on organisation
management to train communication
between equal (horizontal level)
institutions and individuals, can also be
combined with trainings on vertical
communication (S8.a)

3-day workshop about process

optimization in drafting and approving
wind power master plans, combined with
a half-day moderated meeting to present
results to PPC and DOIT

4-day workshop in integrated and

strategic planning for power grids
(responsibility for further grid extension
and grid upgrades), accommodating large
amounts of fluctuating wind power
2-day workshop training in ESIA and
presentations on impacts of land use,
opportunities to increase livelihood
2 trainings of 5 days each; training in
conflict management/mediation,
facilitation, participatory approach

15 managerial personal and

staff of provinces with good
wind regime meet with
investors/project
developers and consultants

Dialog twice per

year after S17.a with
participants from
different provinces,
start in 2016 until
2019

Management and staff of

provincial authorities;
30 participants

2 trainings in 2016
and 1 annually up to
2019

Management and staff of

concerned provinces who
have not drafted provincial
wind development master
plans yet (including
consultants, MOIT-GDENDRE);
40 participants

Immediately with 1
or 2 workshops per
year for each
province, depending
on their
preparedness

Provincial authorities, EVN,

NPT, regional grid operator,
and concerned government
officials; 20 participants
DONRE and DARD;
15 participants

PPCs of different provinces

which face requests of
investors for wind farm
projects; 15 participants

1 workshop in 2019
1 workshop in 2016

At least 1 of the 2
should be conducted
in 2016, repetition
in 2019

Private sector

4.3.1 Investors, project developers and consultants

Project investors are often identical to project owners and frequently act as project developers
due to the specificities in the Vietnamese investment law that the developer, at a very early stage,
has to deposit equity (usually 1%, up to a maximum of 3%, of the overall investment cost) into an
escrow account as a form of guarantee requested by the provincial authorities to prevent
investors blocking (good wind sites) without developing their already approved projects.
Consultants are hired throughout the entire project development and EPCs are hired for the
construction stage. Only few national developers/investors have the knowledge and experience to
develop a wind farm project. Most of them rely on international project developers since they do
not yet have sufficient knowledge in wind energy project management. Therefore, the key
stakeholders are international project developers, national consultants and (international) EPCcontractors.
Highly skilled national consultants are needed to provide high-quality information for political
decision makers. They would organise and moderate meetings between the decision makers,
advisors and national and international wind energy experts. The consultants have to provide
reliable information on micro and macro-economic benefits and challenges, like saving costs for
imported fossil fuels. This would allow Viet Nam to become more independent regarding the
development of the fossil fuel market and the world crisis. They should promote the advantages
of wind power and increase the general awareness across the country. These consultants should
also be in the position to present different approaches on how to bear or distribute the higher
costs in the present pilot phase. They should also discuss financing schemes and models to carry
higher initial CAPEX and even higher O&M costs.

34
It is strongly recommended to train consultants both in Viet Nam and abroad to cover the entire
process from planning to commissioning. However, once the training has been completed, the
administration has to recognise these consultants as certified experts in a given field (e.g. yield
assessments).

Consultants should also be trained to become financial experts and advise banking staff. Different
financing schemes already approved in many countries shall be provided, risks and opportunities
openly discussed, questions of financial due diligence reconsidered and opportunities to
eventually share risks with insurances debated. The consultants should be able to explain and
justify wind energy specific cash-flow-models.

Due to the essential role of governmental authorities, consultants need all the competences to
advise provincial and national governmental staff and support management in ministerial
departments. Guidance is required not only for technical aspects but also on expected impacts of
political decisions concerning wind energy and formulations of drafts and regulations. Currently,
neither universities nor TVET-institutions in Viet Nam offer specialised courses on wind energy
and it is therefore highly recommended that part of the training takes place abroad.

For the time being, consultants are crucial to increase the quality of wind farm planning but also
to support governmental bodies in formulating wind energy development plans. The
qualifications of Vietnamese experts already working as project developers, consultants, investors
and government officials need to be strengthened as stated in the summarised consultant
questionnaire, where additional training needs were requested. An exchange of practical
experience between Vietnamese consultants/project developers and investors with experienced
colleagues from countries with successful wind energy deployment is recommended.
International wind energy conferences provide a good exchange opportunity (see section 4.1.1
MOIT-GDE organizational and individual level).
Table 8: Skills for consultants, project developers and investors
Skill n
S23
S24

Stakeholder: consultants, project developers and investors

Ability to effectively manage wind energy project planning

Advise project investors, owners, bankers, ministerial staff

Table 9: Training for consultants, project developers and investors

Priority-Timeline
HP - MT
HP - MT

Proposed training format

Skill n
S23.a

S24.a

Format

Involved stakeholders

Start

3-day workshop in wind energy

project planning management

Investors, project owners,

consultants; 40 participants

2016, 2019 and

2022

3-month training of interdisciplinary

theoretical courses with internships
abroad to learn practical and soft
skills, wind farm site visits,
manufacturers, planning and
consulting firms, etc.
Alternative: short-term training
courses at universities abroad and
additional trainings in Viet Nam
(including a site visit at a wind farm)

Consultants without working

experience in the wind energy
sector but with good knowledge
in electrical or mechanical or
industrial engineering,
economics, meteorology,
aerodynamics, or similar and
with some work experience in
the power sector, together with
consultants or administration;
20 experienced consultants, 20
inexperienced consultants, 3
experts per year

In 2016 up to 5
modules for
experienced
consultants, shall be
offered annually up
to 2020; 3-month
combined training
replicated in 2017
and 2018

35

4.3.2 Commercial banks and the Viet Nam development bank

Bank managers experienced in granting loans for energy projects need to expand their knowledge
and understand the specifics of wind energy projects. For bank staff whose future task may be to
provide loans for wind energy projects, it is advisable to arrange for a basic 3-day training course
in financial due diligence. In the planning and financing stage, a risk assessment 16 is required
quantifying all the risks related to the wind farm. Banks normally contract independent experts,
who analyse all the financial risks of wind farm planning. It is recommended that bank officials
who will deal with wind energy projects should be invited to meetings with MOIT, MOF and
national and international development banks to discuss loan guarantee options, long term
responsibilities and guarantees for the payment of agreed tariffs based on PPAs and FIT. They
shall also discuss how to channel loans effectively from international development and
commercial banks.
Table 10: Skills for financial institutions
Skill n

Stakeholder: Commercial banks and Vietnamese development bank

S25

Knowledge in specifics of wind energy projects

S27

Ability to perform and assess financial due diligence

S26

Priority-Timeline

Understanding of special conditions for loans for wind energy projects

Table 11: Training for financial institutions

HP - ST

MP - MT
LP - MT

Proposed training format

Skill n
S25.a

S26.a

S26.b
S27.a

Format
2 to 3-hour personal expert talks
providing information on cash-flowanalysis for wind farms, CAPEX, OPEX,
FIT, bankable PPAs and opportunities to
cover risks by special insurances
5-day training courses on wind energy
17
basics , plus 1 day for Q&A of bank staff
providing information on cash-flow
analysis for wind farms, CAPEX, OPEX,
FIT, bankable PPAs and opportunities to
cover risks with special insurances,
1-day site visit at Bac Lieu wind farm to
discuss with the operators
1-day workshop and expert meeting to
discuss successful financing schemes for
wind farms provided by international
financing experts
3-day workshop in financial due
diligence

Involved stakeholders

Start

Bank manager, department heads

for financing of power projects
3 managerial staff per bank, at
least 5 banks

Start in 2016,
then every 3
months

30 bank staff, department heads

for financing of power projects, 20
investors and project developers,
consultants (only staff who has
participated in wind energy basics)

Starting in
2016
annually up
to 2020

Bank staff, department heads for

financing of power projects plus
investors / project developers /
consultants, EPC-contractors; 30
bank staff and 20 others
Bank manager, department heads
and staff dealing with financing of
power projects, consultants;
15 participants

Annually up
to 2020
1st workshop
in 2016, then
every 2nd year

Such site risk assessments include wind speed measurements, wind farm layout, load spectra and lifetime of the
components, the foundation requirements, the electrical losses, noise limits, experience with the planned type of turbines
and the contractual issues dealing with energy production warranties; terms and conditions of contract; Power Purchase
Agreements (PPAs); permit applications; grid connection agreements; and other key documentation; management ability
of the turnkey contractor; completeness of costs and risk of cost variations; commissioning plans and risks; performance
and reliability test procedures.
17
Compare with S3.a and S15.a.
16

36
4.3.3 EPC
Currently, only one local EPC is acting for wind energy projects: Huy Hoang Transportation and
Logistic (HTL). It shall be the EPC for the HBRE wind power project which, however, is far from
starting construction. It has not been possible to have an interview with HTL and assess their
capabilities, but it can be questioned whether the expertise to design, procure, erect, and connect
a wind farm is available.

EPC services offer a huge potential for local value creation on developing wind markets.
Therefore, it is strongly recommended to support capacity building in the EPC sector and to
encourage other companies to enter the wind market. In the long-term, depending on the market
development, Viet Nam should also establish manufacturing facilities. Local manufacturing of
blades, generators or other components can decrease the overall CAPEX and create job
opportunities. The tower manufacturer CS Wind is already located in Viet Nam, mainly producing
tower segments for export.
Table 12: Skills for EPC
Skill n
S28
S29
S30
S31
S32
S33

Stakeholder: EPC

Priority-Timeline

Management of EPC & requirements of wind power business in Viet Nam

LP - MT

Engineering knowledge about production of rotor blades

LP - MT

Technical knowledge about wind turbine and component manufacturing

LP - LT

Knowledge about tower production

18

Engineering knowledge about generators

Ability to plan and fulfil EPC contracts for wind farms

Table 13: Training for EPC

LP - MT
HP - MT

Proposed training format

Skill n

Format

Involved stakeholders

Start

3-day moderated workshop on wind

power specific EPC services and
Vietnamese conditions (e.g.
infrastructure burdens, quality issues,
CAPEX, Joint-Ventures)

Manager of EPC companies, MOIT

delegates, international experts

2016, 2018
and 2020

S28.c

Up to 3-month practical work with

cooperation partner

S30.a

3-month internship with international

cooperation partners (based on joint
ventures, licensed production)

Manager of EPC companies, some

staff should have gained working
experience with already
established EPC or within
cooperation partner

S28.a
S28.b

S30.b
S31.a

18

1-week project management training

1-week expert workshop on design and

materials of rotor blades
3-month internship with international
cooperation partners (based on joint
ventures, licensed production)

Knowledge is already available in Viet Nam.

Manager of EPC companies

2016, 2018
and 2020
2016, 2018
and 2020

3 development engineers per

company interested in producing
rotor blades

Depending on
market
development

3 development engineers per

company interested in producing
generators

Depending on
market
development

3 development engineers per

company interested in producing
rotor blades

2017,
repetition
depending on
demand

37

S32.a
S33.a
S33.b

1-week technical training according to

the specific needs of the technicians
(generator production, blade
production)

Technicians to be trained:
2019-2020: 25
2021-2025:116
2026-2030:155
Max. 25 technicians per training

First training
in 2019

3-day refresher workshop about wind

farm construction

5 EPC companies, who want to

enter this business with 3
managers each

1 year after
S33.a

1-week project management training

about wind farm construction

5 EPC companies, who want to

enter this business with 3
managers each

2016,
repetition
every 3rd year

4.3.4 Wind farm operators

There are two wind farms presently connected to the grid:

Binh Thuan wind farm, operated by Viet Nam Renewable Energy Joint Stock Company
(REVN-JSC). 19
Bac Lieu wind farm, operated by Cong Ly Construction-Trading-Tourism Co.

For the Bac Lieu wind farm, the project developer, project owner and project operator is the
same. The site selection, wind measurement and yield assessment, micro-siting and site
optimisation and pre-FS were all done by an American consultant. The project owner negotiated
with the Vietnamese Development Bank with the support of the Prime Minister. The Prime
Minister then gave mandate to MOIT and MOF to give a guarantee. Land use was considered to be
in compliance with the master plan. Bac Lieu is, up to today, the only wind farm where
government officials have shown a clear interest in making a wind farm work. The process from
project implementation to commissioning only lasted two years.

About 20 O&M staff have been trained for Bac Lieu wind farm by the turbine provider GE in the
USA. However, Cong Ly requested to have more O&M personal trained in commissioning and
operating of wind farms, since Cong Ly has plans for phases II and III. Cong Ly hires experts with
good knowledge, i.e. in electric power systems, but they are looking for experienced trainers for
in-house training for their staff. Training abroad turned out to be too expensive and participants
sometimes fail to attend training courses due to visa problems. Cong Ly also requests training for
a better understanding of different turbine technologies, project development and management of
large wind farms. Cong Ly Construction-Trading-Tourism Co. is open for close cooperation with
the nearby Can Tho University and other universities. Bac Lieu wind farm offers internships for
students and invites wind energy experts and officials to visit the site and share their experience.
Cong Ly did not provide figures on power output and OPEX but stated that the wind farm
operates profitably. There are average wind speeds of 5 to 6 m/s and the project owner could
negotiate a FIT above the present official FIT. Information was given about grid connection cost of
only about US $ 5 million for about 17 km of connection line to the 110 kV sub-station.
Table 14: Skills for wind farm operators
Skill n
S34
S35
S36
S37

19

Stakeholder: Wind farm operators

Ability to manage operation of a wind farm

Operation and maintenance of a wind farm
Conduction of in-house training

Ability of technicians to construct wind farms install turbines and

commission wind farms

The project owner and operator of Binh Thuan wind farm could not be contacted.

Priority-Timeline
MP - MT
MP - LT
LP - ST

MP - LT

38
Table 15: Training for wind farm operators
Proposed training format
Skill n
S34.a
S34.b

S35.a
S35.b
S36.a
S37.a
S37.b
S37.c

4.4

Format

Involved stakeholders

1-week training in wind farm operation

management including wind farm
control, condition monitoring and
production forecasting

Wind farm operator

Up to 2 managers per wind farm

2-week practical training at wind farm in

operation
3-year course for technicians for O&M at
TVET-institutions with additional
training by turbine suppliers for
theoretical and practical training in
inspection of main components, fault
diagnostics, testing and control
3-month special technical training at
EPU or TVET-institutions in combination
with training supplied by turbine
suppliers
1-week training for technicians and
experts in didactics, teaching methods
and general wind energy basics

3-year course for turbine installation and

commissioning at TVET-institutions
3-month special training at EPU or
TVET-institutions

2-week theoretical and practical training

in installation and commissioning

Wind farm operator

Up to 2 managers per wind farm
O&M technicians
2016-2020: 80 participants/year
2021-2030: 248 participants/year

Start
2016,
offered
every 2nd
year
2016,
offered
every 2nd
year
2016

Experienced O&M technicians

2016

Engineers, technicians
5 experts trained per wind farm

2018

Technicians for installation and

commissioning
2016-2020: 40 participants/year
2021-2025: 93 participants /year
2026-2030: 155 participants /year

Experienced technicians for installation

and commissioning
Engineers
2016-2020: 40 participants/year
2021-2025: 93 participants/year
2026-2030: 155 participants/year

2016
2016
2016

Training, education and research

4.4.1 Universities
A basic and comprehensive handbook Introduction to wind energy has been requested by bank
staff, provincial authorities, project owners, investors and university lecturers to be used as an
introduction in bachelor and master courses for electrical engineers, mechanical engineers,
industrial engineers, economists, etc. This introductory handbook can also be very useful for
courses at TVET-institutions. It can be used as basic training material for 5-day
trainings/workshops on wind energy basics for different stakeholder groups. Authors/editors of
the handbook need training in didactic and teaching methods to lecture basic courses.

MOIT, provincial authorities, consultants and project developers/investors regret that neither
universities nor TVET-institutions offer special courses on renewable energies in general and
wind energy in particular. University professors state that there is insufficient demand from
ministries, students and the power sector to design and to offer such courses. Therefore, it is
highly recommended that MOIT-HRD-Department prepares a Capacity Development Master Plan
for RE with special focus on wind energy and that MOIT requests concerned universities to
provide such education. 20 It is advised that the universities use the WB-funded Renewable
20

As already done for the nuclear power sector.

39
Energy Development Project (REDP) for Viet Nam which supports universities to design and
provide demand-driven training courses on RE with a focus on the different technologies, as well
as on economic and financial aspects. Electric Power University (EPU) and Hanoi University of
Science and Technology (HUST) were already selected as beneficiaries of this exercise.

1-day meetings of lecturers from different universities and TVET-institutions dealing with wind
related topics should be initiated to prepare a platform for cooperation between universities.
Simultaneously, it will provide useful information for the HRDD of MOIT in preparing a Capacity
Development Master Plan for education and training in wind energy supported by GIZ. This
master plan should consider all stakeholders and their different needs, interests and levels.
Networking between lecturers of Vietnamese universities, TVET-institutions, project developers,
and political decision makers are necessary to give them the opportunity to present themselves as
experts and lecturers to the Vietnamese stakeholders. As a matter of fact, local lecturers are not
recognised as highly qualified by many consultants, project developers/investors and ministerial
officials. EPU is well-positioned to offer advanced training on specific topics of wind energy for
experts from the power sector. Therefore, it is recommended to guide EPU in the development of
courses in wind energy for professionals of the power sector. Support for training material,
financing of the translation of a wind energy text book and training of EPU lecturers on wind
energy is suggested.
Table 16: Skills for universities
Skill n
S38
S39
S40
S41
S42

Stakeholder: Universities

Priority-Timeline

Editing and publishing a comprehensive handbook on wind energy basics

Ability to lecture basic courses in wind energy

Ability to prepare and perform interdisciplinary wind energy courses motivate professors and PhD candidates from different faculties and
institutes to form interdisciplinary teams and prepare curricula for shortterm courses and B.Sc./M.Sc. courses in RE with strong focus on wind
energy and the technical knowledge and skills to perform these courses
Knowledge to develop/perform upgrading wind power training modules for professionals of the power sector
Ability to efficiently manage a national wind energy association

Table 17: Training for universities

HP - MT
HP - ST

HP - LT
HP - LT

MP - ST

Proposed training format

Skill n

S38.a

S39.a
S40.a

21

Format
Meeting with a group of local and
international authors with knowledge
in wind energy to discuss and review
the different chapters of the
handbook 21

3-day training in didactics for

introductory courses, teaching
methods, self-critical reflection,
presentation and communication, role
plays and feedback
3-month courses at international
universities like Kassel, Oldenburg,

Proposed topics of the handbook in Annex 4.

Involved stakeholders
1 responsible author of the handbook
Introduction to wind energy; PhD
candidates and lecturers from
universities and TVET-institutions,
international authors who have
published handbooks on wind energy
basics (10 experts); 1 coordinator
Authors/editors of the handbook,
lecturers, 10 consultants/authors, 20
professors/lecturers from universities
and TVET-institutions, PhD candidates
and practical oriented experts
Lecturers from universities and TVETinstitutions mainly from electrical or

Start
Immediately,
Handbook
update every
3 to 5 years
2016 to 2019
repeated
annually
2016,
repeated

40
Flensburg, AIT or other recommended
22
training institutions
S40.b

S41.a
S42.a

1-week training in didactics, teaching

and presentation methods for lectures
in wind energy
Workshops and discussion rounds modules for specific topics can be
developed in cooperation with
international training institutes

Meetings and exchanges on

international wind energy conferences
for experienced staff, 3-month
internships at international wind
associations for new staff

mechanical/industrial engineering
faculties, every year 5 experts should
participate in the 3-month courses
Lecturers from universities and TVETinstitutions mainly
electrical/mechanical and industrial
engineering faculties; in total 25
participants
Professors/lecturers from EPU mainly
from electrical or mechanical or
industrial engineering faculties/
institutes, every year 5 experts should
assist in adapting the training modules
5 staff with excellent knowledge
concerning wind energy,
communication and promotion skills
required

annually
2016,
repeated
annually
2016
2016,
internships
depending on
new staff

4.4.2 MOIT HRD department

MOIT-HRDD shall be supported in providing adequate human resources for the wind energy
sector. The links between HRDD and universities who offer special courses in RE energy should
be strengthened. MOIT-HRDD shall be supported in drafting a Human Resources Master Plan: a
Capacity Development Plan for RE focusing on wind energy accommodated with the relevant
institutions. It is recommended to organise expert meetings on this issue with MOET since they
play a central role in requesting universities to provide wind power training.
Table 18: Skills for MOIT-HRD department
Skill n
S43

Stakeholder: MOIT-HRD department

Priority-Timeline

Capability to draft and implement an HRD Master Plan for RE with focus on
wind energy

Table 19: Training for MOIT-HRD department

HP - ST

Proposed training format

Skill n
S43.a

Format

Involved stakeholders

1-week training course in master plan

drafting and moderation; personal
technical coaching, expert talks, round
tables with universities, MOIT-GDE and
MOET and other stakeholders

Responsible heads and 3 to 5 staff

working at HRDD for this project;
participation in wind energy basics
course required

Start
2016

4.4.3 TVET institutions

TVET Institutions have to be persuaded to offer training for experts in installation,
commissioning and operation of wind farms, once the market is gaining momentum and more
wind projects reach a later stage of development. Government institutions and international
cooperation partners should provide incentives to prepare and start courses tailored to the exact
needs of these groups.

For O&M personnel, a combined training strategy including wind turbine manufacturers could be
designed and implemented. Wind turbine manufacturers, normally granting a three to five year
contract for maintenance and service, could be asked to train local experts during this period to
allow them to do this job later. Courses at TVET-institutions could lay a basis for the required
expert knowledge and provide additional practical knowledge.

22
Existing co-operations between Vietnamese and international universities are best to be used, there should be a steady
exchange of students, PhD candidates and professors within the next years.

41
The project owner of Bac Lieu Wind Farm, Cong Ly construction-trade-tourism company ltd.,
offers internship opportunities for students and allows technical visits for participants of
workshops/seminars. TVET-institutions should be informed about this opportunity and
encouraged to include this module in their courses. Discussions with TVET institutions should
encourage special short courses dealing with foundations of wind turbines, cabling within wind
farms, production of mechanical and electrical system components, construction work, etc.
Graduate engineers with practical experience but no teaching experience could be recruited for
part time jobs as lecturers at TVET-institutions or in private training institutions. It is
recommended to provide training in didactics and teaching methods to this group. PhD students
who may become lecturers at universities in renewable energies/wind energy may join this trainthe-trainer course.
Table 20: Skills for TVET-institutions
Skill n
S44
S45

Stakeholder: TVET- Institutions

Priority-Timeline

Ability to design a curriculum and train technicians and O&M personal 23 including installation and commissioning processes technicians
Ability to develop and perform upgrading training modules in wind energy
for professionals in the power sector

MP - LT
MP - LT

Table 21: Training for TVET-institutions

Proposed training format
Skill n
S44.a
S45.a
S45.b

Format

Involved stakeholders

Start

Workshops and trainings based on

international standards of O&M,
installation and commissioning practical
training at Bac Lieu wind farm

Staff responsible for development of

curricula for O&M, installation,
commissioning technicians, lecturers
20 lecturers, 5 lectures per year

2016 up
to at least
2020

3-day trainings in didactics, teaching and

presentation methods 24

Graduate engineers, PhD students and

consultants without teaching
experience

2016,
repeated
annually

3-month training at international

universities

20 graduate engineers, PhD students

(e.g. from EPU), 5 per year

2016 to
2019

4.4.4 Research & development

HUST, Da Nang University, EPU and HCM University have not established any research
department for wind energy. However, there are ongoing research activities in many wind power
research fields although the quality has not been assessed. Shorter applied research could be
more appropriate for specific projects in order to support the sector. Greater networking and
cooperation would also result in more effective work. The organisation of conferences on wind
energy could facilitate this, alongside a long-term national research centre to bundle common
activities.
Table 22: Skills for research and development
Skill n
S46
S47

23
24

Stakeholder: TVET- Institutions

Research skills in all relevant fields for wind energy

Research and development skills within the industry

Coordinate and align curriculum with turbine manufacturers.

Combine with S40.b.

Priority-Timeline
LP - LT
LP - LT

42
Table 23: Training for research and development
Proposed training format
Skill n
S46.a
S47.a

Format

Involved stakeholders

Expert workshops to design a research

program for PhD candidates and
25
professors

20 PhD students with experience in

wind energy or related fields,
consultants, international experts

Site-workshops on conferences about

applied research demand and
possibilities

PhD students with experience in wind

energy and 5 experts from companies

Start
2016,
result
updates
annually
2016,
annually at
every
conference

While there are many research activities and skills that could be supported indirectly or directly,
it should be noted that some have not been assessed in this paper. This includes for example the
production of wind measurement equipment which could, in the long-run be done locally,
including the development and production of sensors, anemometers, their calibration, testing of
equipment in wind channels, operation of testing and quality assurance centres, etc.
As part of the GIZ project on wind power, assessments will also be done specifically for the
university sector in Viet Nam and Germany and bilateral research cooperation projects will be
directly supported.

HUST, University Da Nang, HCM University shall make arrangements on different research topics with their
international cooperation partners to establish joint research departments accordingly.

25

43

05

Capacity Building Measures

Overview

44

5. Capacity Building Measures Overview

This chapter presents an overview of the evaluation of the needs assessment and proposed
measures (see chapter 4. Results of the Assessment: Capacity Needs at all Levels). The overview is
guided by the questions:
Which skills are required and how should the development of these skills be prioritised?
Which training formats are suggested to develop these skills?
Which are the main stakeholders requiring these skills and training?

Table 24 is classified according to the prioritisation of skills needed. As explained in chapter 4, HP

skills are most urgently needed and would have a large impact on the wind sector development.
The time required for the development of the different skills varies greatly. Some skills need
several years to be developed, others only a few days or weeks. Besides, the question of when the
different skills will be needed and the timing of the training are very important. Figure 4 shows a
proposed schedule of high and medium priority skills and training formats. In order to fulfil PDP
VII targets, it is strongly recommended to develop all the skills by undertaking the suggested
trainings in the timeframe given.

In Table 24, proposed training formats are only briefly mentioned. Comprehensive descriptions
can be found in chapter 4. By definition, a training lasts at least several days and is guided and
moderated by an expert or a trained teacher, a course is more in the long-term. A workshop is
usually also moderated and guided but has predefined goals and aims to create a more specific
outcome. A meeting brings together experts and high level decision makers and only lasts a few
hours and discussion rounds have similar stakeholders but can last longer.

Table 24: Capacity development matrix

Priority
factor,
Timeline

Skills

Format of training

HP

LT

S3 / S15: Understanding of wind energy basics

1-week training and site visit;

p.29 and p.32

HP

LT

S41: Knowledge to develop / perform upgrading

wind power training modules

Workshops and discussion

rounds; p.39

HP

LT

HP

MT

HP

MT

HP

HP
HP
HP
HP
HP
HP

MT

MT
MT
MT
MT
MT
ST

S40: Ability to prepare and perform interdisciplinary

wind energy courses
S2: Understanding of advantages and

challenges of wind energy

S5: Monitoring of policy and incentive schemes

S6: Capability to review FIT considering decreasing
CAPEX and OPEX
S17: Ability to assess investors documents

S23: Ability to effectively manage wind energy

project planning

S24: Advise project investors, owners, bankers,

ministerial staff

S33: Ability to plan and fulfil EPC contracts for wind

farms
S38: Editing and publishing a comprehensive
handbook on wind energy basics

S16: Ability to draft and implement guidelines for

wind farm approval process

3-month courses abroad, 1week training; p.39

Discussion rounds; p.29
1-week training; p.28
Meetings; p.29

Workshops; p.32
Workshops; p.34

3-month training, internships, site visits; p.34

1-week training and

refresher workshop; p.36
Expert meeting and
discussion round; p.39
Moderated experts
workshop; p.32

Sector/main
stakeholders
MOIT-GDE,

Provincial authority
departments

Universities
Universities
MOIT-GDE
MOIT-GDE
MOIT-GDE

Provincial authority
departments

Consultants, project
developers, investors
Consultants, project
developers, investors

EPC

Universities

Provincial authority
departments

45
HP

ST

S25: Knowledge in specifics of wind energy projects

Expert presentations,
discussion rounds; p.35

Financial
institutions

HP

ST

S43: Capability to draft and implement an HRD

Master Plan for RE

1-week trainings, personal

coaching, round tables; p.40

MOIT-HRDD

HP

ST

MP

LT

MP

LT

MP

MP
MP

LT

LT
LT

MP

MT

MP

MT

MP

MP
MP
MP
MP
MP

MT

MT
ST
ST
ST
ST

LP

LT

LP

LT

LP

LP

LT

LT

LP

MT

LP

MT

LP

LP
LP
LP

MT

MT
MT
MT

S39: Ability to lecture basic courses in wind energy

S4: Decision making under uncertainty

S35: Operation and maintenance of a wind farm

S37: Ability of technicians to construct wind farms

S44: Ability to design a curriculum and train
technicians and O&M personal

S45: Ability to develop and perform upgrading

training modules in wind energy
S18: Capability to establish and guide
interdisciplinary working groups

S19: Capability to draft / implement provincial wind

power development master plans
S26: Understanding of special conditions for loans
for wind energy projects
S34: Ability to manage operation of a wind farm
S9: Knowledge management

S13: Management of the grid integration of

fluctuating wind power

S21: Assessment of ESIA and positive impacts of

wind farms

S42: Ability to efficiently manage a national wind

energy association
S1: Leadership skills

S32: Technical knowledge about wind turbine and

component manufacturing
S46: Research skills in all relevant fields for wind
energy
S47: Research and development skills within the
industry

S6: Capability to appraise impact of policy measures

S8: Communication skills

S14: Practical experience on grid management

S22: Capability to use additional methods in conflict

management
S27: Ability to perform and assess financial due
diligence

S28: Management of EPC & requirements of wind

power business in Viet Nam

Trainings and workshops;

p.39
Workshops; p.29

3-year course, 3-month

technical training; p.38

3-year course, 3-month

training, short training; p.38
Workshops and on-site
trainings; p.41

Workshops and trainings;

p.41

Workshops and trainings;

p.32

Workshops and moderated

meetings; p.32
Workshops, Trainings, site
visits; p.35

1-week theoretical, 2-week

practical trainings; p.38
Workshops; p.29

1-week trainings; p.31

Workshops; p.32

3-month internship,
conferences; p.39

1-week trainings, coached

meetings; p.29
1-week technical training;
p.36
Experts workshops, p.42

Workshops on conferences,
p.42
Meetings and study tours;
p.29
Trainings; p.29

Study tour, workshops,

trainings; p.31
Trainings; p.32

Workshops; p.35

Workshops, 1-week training,

3-month internship; p.36

Universities

MOIT-GDE

Wind farm
operators
Wind farm
operators
TVET
TVET

Provincial authority
departments
Provincial authority
departments

Financial
institutions
Wind farm
operators
MOIT-GDE
EVN

Provincial authority
departments

Universities /
Associations
MOIT-GDE
EPC

R&D universities
R&D industry
MOIT-GDE
MOIT-GDE
EVN

Provincial authority
departments

Financial
institutions
EPC

46
LP

MT

S30: Engineering knowledge about production of

rotor blades

3-month internship and 1week training; p.36

EPC

LP

ST

S20: Capability in integrated and strategic planning

for power grids

Workshops; p.32

Provincial authority
departments

LP

LP
LP
LP
LP
LP

MT

ST

S31: Engineering knowledge about generators

S36: Conduction of in-house training

S10: Knowledge to comment on wind power

development master plans
S11: Knowledge regarding PPA negotiations

S12: Capability to negotiate on compensation for

losses
S29: Knowledge about tower production

3-month internship; p.36

1-week trainings; p.38

EPC

Wind farm
operators
EVN
EVN
EVN
EPC

47

Figure 4: Prioritisation and timeline of capacity development measures

48

06

Potential for Local Value Creation

49

6. Potential for Local Value Creation

When developing skills, there clearly is an increase in the creation of local value. To further
increase the local value in the wind power sector, specific measures can be taken by the
government to bolster the local production of components where feasible, e.g. through specific
policy incentives. At the same time, these measures of industrial policy are notably also an
attractive destination for foreign and local investment.

To assess the different elements where value can be added locally, the value chain approach is a
well-known concept used to analyse the status and the potential for local value creation in a
sector. Locally created value in terms of jobs and GDP can be assessed along the wind power value
chain, which is typically divided into core segments of the value chain and supporting processes,
illustrated below in Figure 5. The purpose of a value chain analysis is to identify possibilities and
to derive concepts in order to increase local value all along the wind value chain, in core and
supporting segments.
Segments of Value Chain
(I)
Project
Planning

(II)
Manufacturing

Supporting Process

(III)
Transport &
Installation

(IV)
Grid
Connection

(V)
O&M

(VI)
Decommissioning
& Repowering

A) Policy Making

B) Education & Training

C) Research & Development

D) Financial Services
E) Consulting

Figure 5: Wind power value chain segments and supporting processes

The degree of local value creation of wind power projects depends on the stage of market
development. Some processes, especially in the manufacturing segment, are easier than others to
be conducted domestically. The more wind farm projects are developed, the more local experts
and capable wind companies will be available. Meanwhile, segments like R&D and component
manufacturing are only developed where it is efficient to do so, depending on factors like:

the current and potential size of accessible markets,

cost of production, existing facilities and capability of domestic firms,
labour/engineering skills and entrepreneurial behaviour,
political will, incentives and subsidiaries to develop the domestic industry.

A general, simple assessment underlines the importance of the manufacturing segment for value
creation of wind projects. The costs for a wind power plant are usually clustered in capital
expenditures (CAPEX) and operational expenditures (OPEX). Thereby, a typical assumption for
onshore wind power is a cost share of 75% CAPEX 26 and 25% OPEX, arising during 20 years of
operation. 27 Accordingly, three-quarter of value creation potential emerges from the first four
26
27

CAPEX incorporates value chain segments I to IV.

IRENA (2015), p. 68. The LCOE consider all costs during project lifetime, including initial capital expenditures.

50
core segments on the value chain before commissioning and operation. Thereunder, processes
like transportation and installation, construction and grid connection are naturally done by local
companies and will develop as soon as the market establishes itself. For example, the study of the
wind energy industry in South Africa shows that Balance of Plant (BOP) expenses 28 comprise on
average of 45% of the overall CAPEX required for wind energy projects. The remaining 55% of
capital expenditures are spent on the wind turbine (manufacturing segment) 29.

A comprehensive analysis about the potential for local value creation in the wind power sector in
Viet Nam will be provided by GIZ at the end of 2016. In the following sections, focus is given to the
jobs and stakeholders that were not assessed in detail in chapter 4, due to missing existing
interviewees. However, it is necessary to estimate future demand for trained experts and
engineers, e.g. in construction, installation and maintenance in order to plan capacity
development measures in the long run.

6.1

Estimated need for training in manufacturing

The substantial development of the national wind turbine and component manufacturing sector
depends on the technically and economically exploitable wind potential and market growth
within the next years. The willingness and ability of existing industries to expand their business
and governmental support also play a large role in this development.

In order to roughly estimate the number of skilled, semi-skilled and low-skilled employees
needed in the manufacturing sector, reliable figures about the expected wind power market size
in Viet Nam would be necessary. However, these are largely dependent on political decisions as
well as the technical potential (i.e. the resource). Experts in the market estimate the potential to
be in the range of 24GW 30. Taking the stated objective of the PDP VII (1 GW up to 2020 and 6.2
GW up to 2030) and assuming the installations will be the same every year, 200 MW will be
installed per year up to 2020 and about 620 MW annually between 2021 and 2030. This demand
is most probably too small to trigger local turbine or component production since, with an open
economy like the Vietnamese one, a large part of the demand will be covered by imported
turbines.

However, several component manufacturers are already active in Viet Nam. ABB and some other
companies manufacture 22kV cables, 22kV switchboards and transformers. GE is planning the
assembly of wind turbine generators in Hai Phong City. Wind tower production is one of the most
attractive industries for Viet Nam at this stage of development due to the existing steel and
cement industries as well as the low technological complexity. In fact, it is the first wind-power
related industry that has developed in Viet Nam with two existing wind tower companies: UBI
Tower and CS Wind Corporation which are, for the time being, exporting most of their production.
It has been estimated that these two tower producers could meet a great part of the local demand
by employing additional workers who may not require external training.

In parallel with further market development, it would be favourable to start the rotor blade
production in Viet Nam to avoid the costly long-distance transportation of imported blades.
However, it is not recommended to start this production outside a joint venture or license
agreement. For rotor blades, about 600 to 800 man-hours are calculated but automation would
considerably reduce this number.

For the calculation of future training needs for the manufacturing sector, it is assumed that there
will be no additional local turbine and component manufacturer in the Vietnamese market in the
next three years. In 2019, the local production is estimated to be around 20%, this number will
increase to 30% between 2021 and 2025 and will reach its maximum between 2026 and 2030
with a share of local production of turbines and components of 40%. These figures were
28
29
30

Balance of plant is the cost of all infrastructures and facilities of a windfarm excluding the turbine and all its elements.
Compare with DTI (2015).
Neighbouring markets should also be considered while assessing future market size for a manufacturing industry.

51
calculated by assuming a rough mean value of 5 jobs/MW 31 for wind turbine and component
manufacture. It is further expected that about 75% of them are skilled workers, mostly available
on the market. The remaining 25% are technicians, engineers and managerial staff which can be
considered for potential training. Assumptions and calculated training needs are presented in
Table 25.

Table 25: Technicians, engineers, managerial staff needed in the manufacturing sector
Time period

2016-2018

2019-2020

2021-2025

2026-2030

Annual installed
capacity

200 MW

200 MW

620 MW

620 MW

Local jobs (total)

200/y

930/y

1.240/y

50

232

310

50% = 25

50% = 116

50% = 155

Local content

Technicians,
engineers,
managerial staff
(maximum 25%)
Number of
technicians who
may need training

20%

30%

40%

6.2 Estimated need for training in transportation and

installation
In order to calculate the training need for EPC contractors that provide construction, installation
and commissioning services 32, it is assumed that about 5 EPC-companies will enter the business
and 3 managers of each EPC-company will receive training in wind energy project construction
management. There will be a total of 15 managerial staff necessitating a 2-week training in wind
energy project construction management. This training may be offered twice for a small group of
7 to 8 managers.

Furthermore, it is assumed that skilled wind farm construction workers do not need additional
training since the required skills are similar to those in general construction work such as road
extension, foundation building, substation construction, cable installation and steelwork erection.
Turbine installation technicians responsible for the assembly of the tower, nacelle, blades, and
other components and the connection of the wind farm to the power grid, require a profound
technical knowledge which should be provided by TVET-institutions. 3-year courses for
technicians can be continued and adapted with an additional focus on the special needs for
turbine installation. Special training for technicians with practical experience in the power sector
or an electro-mechanic or mechatronic background can be offered by TVET-institutions or EPU
and would last up to three months. It is highly recommended to prepare these courses in close
cooperation with turbine manufacturers who might even take a lead in designing the training
course or support the development of the curriculum. Part of this training could be provided
through their own skilled trainers in Viet Nam or their home country. Grid connection requires
specific knowledge which has to be addressed in the 3-year technician course and has to be a
focus point in the short-term courses offered by TVET-institutions, EPU or turbine manufacturers.

Commissioning including testing of subsystems, quality checks, energisation of system, first

generation, measurements of critical parameters in operation 33 is often done by the turbine
31
32
33

See GIZ (2012), p. 46ff.

Included in core segment 3 of the wind power value chain.
See GIZ (2012), p. 55ff.

52
manufacturer but is considered as a future working area for skilled local technicians. Their
training can be organised similarly to the training for installation technicians but with some
training modules focusing on the specific tasks of this group as described above.

For South Africa 34 it is estimated that for construction and installation between 6 and 10
jobs/MW are required. In this case, the lower figure of 6 jobs/MW is used for the calculations. In
addition, it is assumed again that within the next five years, 200 MW will be installed annually and
then up to 2030 about 620 MW annually. It is further assumed that out of the 6 jobs/MW, 4 jobs
are on a skilled worker level, 1 job is on a technician level and 1 job is on an engineering level.

Taking into account that up to 2020 only 20% of these jobs can be executed by local staff,
estimating an increase to 30% in the following five years and up to 50% for the subsequent five
years, rough estimates of jobs and training needed in the installation and construction sector are
shown in Table 26.
Time period

2016-2020

2021-2025

2026-2030

Annual installed
capacity

200 MW

620 MW

620 MW

Skilled workers needed

(no additional training
needed)

4 x 0.2 x 200 = 160/year

4 x 0.3 x 620 = 744/year

Technicians who need

35
training

40/year

93/year

Technicians needed

Engineers needed

Engineers who need

training

1 x 0.2 x 200 =
40/year
1 x 0.2 x 200 =
40/year
40/year

4 x 0.5 x 620 =
1.240/year

1 x 0.3 x 620 = 186/year

1 x 0,5 x 620 = 310/year

1 x 0.3 x 620 = 186/year

1 x 0,5 x 620 = 310/year

93/year

155/year

155/year

Table 26: Jobs and training needed in the installation and construction sector
The training requirements of the technicians for manufacturing, construction, installation,
commissioning and O&M create additional jobs at TVET-institutions and EPU. The training
requirement for engineers should give a signal to technical universities to provide additional
courses or to integrate the required topics in their curricula for electrical and mechanical
engineers. In particular EPU should provide up to three months special courses to support
engineers from the power sector to become experts in wind energy manufacturing, construction,
installation, commissioning and O&M. Additional jobs for trainers to educate additional lecturers
will be created.

See GIZ (2012), p. 46ff.

It is assumed that in the first five years all technicians and engineers need additional training. As many technicians and
engineers once have been trained may be employed for wind farms constructed in the following years, it is assumed that
between 2021 and 2030 only 50% are new in the business and need training. Some engineers and technicians may be
employed in more than one wind farm project in parallel (if one investor is going to realise different wind farm projects at
the same time).

34
35

53

6.3

Estimated need for training in O&M

Contracts with turbine suppliers should include an obligation to train local staff as operation and
service technicians. This training should contain several weeks of in-house training in the
manufacturers base country. Introductory or basic courses and advanced courses can be
designed and prepared by TVET-institutions in close cooperation with turbine manufacturers and
suppliers. Wind service technicians will be
trained in the same courses as installation and
commissioning technicians at TVET-institutions
but with modules focusing on mechanical,
hydraulic,
electrical
and
control
and
instrumentation service, testing, fault finding and
repair 36 as well as design maintenance plans.
However, graduate technicians from TVETinstitutions still need to be trained by the turbine
suppliers. Experienced electrical or mechatronic
technicians may just need a 3-month training
designed and provided by TVET-institutions or
Technicians from Bac Lieu Wind Farm
EPU.
Nov 2015, photo: GIZ

It has been assumed that the number of skilled workers and engineers in this sector is negligible
and the estimates of GL Garrad Hassan (consultancy company) 37 have been followed considering
that 0.4 technicians per MW installed capacity are needed for O&M. In addition, assuming that
there is a strong common interest to employ local technicians for O&M as much and as fast as
possible and assuming that the targets stated in PDP VII are realistic, the following Table 27
presents the number of jobs and training needed for O&M technicians.
Time period

2016-2020

2021-2030

Annual installed capacity

200 MW//year

620 MW/year

Technicians needed and who

require training

200 x 0.4 = 80/year

620 x 0.4 = 248/year

Table 27: Technicians and training needed in operation and maintenance

It is assumed that these technicians will only work at one wind farm. Service companies, however,
may provide their services to various wind farms. This would reduce the number of required
O&M technicians. Jobs may also be created in the field of condition monitoring. This tool, used for
the early detection of faults and failures, can help minimise downtime but may also reduce the
number of O&M personal at the wind farm site. Wind farm operation also needs trained
managerial staff. It is recommended to offer trainings at least once a week in wind farm operation
management and invite at least two managerial staff per wind farm to this training. Component
and turbine manufacturers, EPC-companies, wind farm operators will all employ additional office
staff.

36
37

See GIZ (2012), p. 59ff.

See GIZ (2012), South Africa CNA study.

54

6.4

Recommendations to increase value creation

Value creation through industrial development in the wind energy sector depends on the
capability of domestic firms, local subsidiaries of foreign owned companies, joint ventures
between domestic and foreign-owned firms or domestic firms working on a license basis and
governmental support.

In order to develop a national Vietnamese wind turbine manufacturing sector, a mutual

willingness to start joint ventures or to conclude license agreements for the production of
nacelles, generators, brakes, and other components is necessary. International experience shows
that a clear political strategy is probably the most decisive factor and industrial policies need to
be formulated within the next years 38.

The domestic Vietnamese market should promise a stable and long-lasting growth potential.
Therefore, the wind power FIT must be high enough to attract investors. Laws are required to
secure purchase, payment and guarantees for foreign investors. A stable market development can
be achieved by formulating clear political targets, rules and regulations and supporting their
implementation and execution, by investing in training and research activities and by improving
the existing infrastructure (e.g. logistics and grid extension planning).

Neighbouring and oversea markets should also be targeted when establishing a turbine or
component production. Thus, high quality system components should be produced according to
international standards. License agreements or joint ventures with international companies as
well as international cooperation in research and development could support this process.

38
Detailed analysis about opportunities for the expansion of the manufacturing sector and related policy
recommendations are an area of work of GIZ for 2016.

55

07

Conclusions

56

7. Conclusions
In short, the current period of hesitation has to be overcome. Development of the Vietnamese
wind energy sector will only take place if there is an attractive political framework, conducive to
investment. While the feed-in tariff will likely not solve all problems, it definitely is an issue that
hinders all developments.

Once the conditions are more attractive, a core group of individuals and institutions will be
required to have the capacities and skills to further expand the market in the most cost-effective
way for the country. As highlighted above, policy-makers need to better understand the effects
and impacts of incentive mechanisms, but also the general concepts behind cashflow-financing of
renewable energy-based power plants. Successful policy-makers tend not necessarily to graduate
from engineering disciplines, but rather have economics or political sciences degrees enabling
them to shape up frameworks, and monitor these, rather than focus on technical detail. A good
base exists in the institutions, but this should be expanded upon qualitatively and quantitatively,
as indicated above. With these skills, the debate about the development of the sector should be
opened to a wider public and all stakeholders integrated into the shaping of policies in the future
in order to build a reliable framework.

Similarly, a private sector that can, on the one hand, develop wind power projects while, on the
other, assess projects and finance these through local financial resources is required. Engineers
and economists thus have to graduate from universities and qualified training institutes in the
long-run (rather than from abroad), have to do internships at existing wind power plants in the
country, engage actively in debates and discussions with the government and join the shaping of
the sector in a transparent and open way.

Bac Lieu Wind Farm Nov 2015, photo: GIZ

57

References
DTI (2015) - Department Trade and Industry. The Wind Energy Industry Localisation Roadmap
in Support of Large-Scale Roll-Out in South Africa, Report, URL:
http://www.wasaproject.info/docs/WindEnergyLocalisationStudyJan2015.pdf, accessed
30.08.2015
EWEA (2009) The European Wind Energy Association. Wind at Work Wind energy and job
creation in the EU, Report, URL:
http://www.ewea.org/fileadmin/ewea_documents/documents/publications/Wind_at_work_FIN
AL.pdf, accessed 30.08.2015

GIZ (2012) - Assessment of training and skills needs for the wind industry in South Africa, Final
Report, URL: http://www.record.org.za/news/item/assessment-of-training-and-skills-needs-forthe-wind-industry-in-south-africa
GIZ (2016) Value Chain Approaches to Assess the Local Value Creation of Wind Energy in Viet
Nam, Report, March 2016

IRENA (2015) - International Renewable Energy Agency. Renewable Power Generation Costs in
2014, Report, URL:
http://www.irena.org/DocumentDownloads/Publications/IRENA_RE_Power_Costs_2014_report.
pdf, accessed 30.08.2015
MOIT (2015) Circular 06/2013/TT-BCT, Website:
http://www.moit.gov.vn/vn/Pages/ChiTietVanBan.aspx?vID=12965, accessed 30.08.2015
World Bank (2015) Energy Open Data Platform, Website:
http://data.worldbank.org/topic/energy-and-mining, accessed: 30.08.2015

58

Annexes
Annex 1: Map of average wind speed in Viet Nam ........................................................................................................... 59
Annex 2: Skills to develop wind energy in Viet Nam....................................................................................................... 60
Annex 3: Proposed content for grid integration training - S13.a .............................................................................. 63
Annex 4: Proposed content for wind energy basics handbook S38.a .................................................................. 63

Annex 5: Proposed content for consultants and project developers training S24.a ..................................... 64
Annex 6: Proposed content for EVNNLDC training S14.a ......................................................................................... 65
Annex 7: List of interviewed stakeholders .......................................................................................................................... 66

59
Annex 1: Map of average wind speed in Viet Nam 39

Duc Luong Nguyen: A Brief Overview on Assessments of Wind Energy Resource Potential in Viet Nam; Department of
Environmental Technology and Management, National University of Civil Engineering, 55 Giai Phong Road, Hai Ba Trung
District, Hanoi, Viet Nam

39

Measured at a height of 80m.

60
Annex 2: Skills to develop wind energy in Viet Nam
Theoretical skills needed
S1: Leadership skills

S2: Understanding of
advantages and challenges
of wind energy
S3: Understanding of wind
energy basics
S4: Decision making

under uncertainty

S6: Capability to appraise

impact of policy measures

S7: Capability to review FIT

considering decreasing
CAPEX and OPEX
S8: Communication skills
S9: Knowledge management

S10: Knowledge to comment

on wind power development
master plans
S11: Knowledge regarding
PPA negotiations
S12: Capability to negotiate
on compensation for losses

S13: Management of the grid

integration of fluctuating
wind power
S14: Practical experience on
grid management
S16: Ability to draft and
implement guidelines for
wind farm approval process
S17: Ability to assess
investors documents

S19: Capability to draft /

implement provincial wind
power development master
plans

S20: Capability in integrated

and strategic planning for
power grids

S21: Assessment of ESIA and

positive impacts of wind

Skills needed in Viet Nam

Request support from other ministries for
wind energy deployment and guidance for the
coordination process between
ministries/provincial departments
Support the formulation of favourable political,
legal, and economic framework conditions for
wind energy
For a basic understanding of all stakeholders
involved in wind energy sector

Preparation of favourable framework

conditions for wind energy development
(policy); decision on investments (bankers),
training courses in wind energy (universities,
TVET-institutions)
Monitoring of the targets of PDP VII

React to discussions on balancing

remuneration for wind power producers, costs
for electricity consumer and provoke reduction
of CAPEX according to improved technology
Match MOIT with provincial wind energy
planning; build up and maintain information
channels between provincial authorities and
guide interdisciplinary working groups to
support the deployment of wind energy in
provinces
Build up a data base in MOIT-GDE and increase
knowledge management for faster and more
effective access to information required for
meetings and drafts
Tasks and responsibility of EVN recognised in
the wind power development master plans
Enable EVN to purchase all wind power on
basis of PPAs
Allow EVN to compensate losses caused by
eventual increase of FIT and compensate
higher investments in grid upgrades/grid
extension due to steady increase in wind
power
Manage integration of large amounts of
fluctuating wind power into the Vietnamese
power grid and to manage power grids with
large share of fluctuating wind power
Prepare EVNNLDC for their practical work at
load dispatch centre A0 in Hanoi

Make approval process on provincial level for

wind farms more effective

Find agreements on requirements concerning

quality and informative value of all documents
investors have to present to provincial
authorities
Draft wind energy development master plans
for additional provinces according to the
targets of the province and MOIT

Enable provincial authorities, EVN, NPT,

regional grid operator, and concerned
government officials to prepare and realize
required grid extension and grid upgrades to
accommodate large amount of wind power
DONRE and DARD can assess impacts on
fishery, forest and land use and birds as well as

Which can already be found and which ones

are missing?
Practical knowledge from MOIT and PCC

OoG, MOIT-GDE-DNRE have good

understanding, other ministries like MOF,
MOET, MPI, MOC, MONRE need information
MOIT-GDE-DNRE and some consultants have
this knowledge.
Staff of provincial departments and PPC,
bankers, consultants, lecturers, investors, EPCcontractors need it
Experience from other sectors beyond wind
energy

Skills have to be further developed at MOITGDE

Experience in calculating present FIT proposal,

no experience on adapting FIT to decreasing
CAPEX and OPEX yet
Lack of communication between MOIT-GDE
and DOIT and between provincial authorities
of different provinces
No adequate knowledge management
established
EVN has experience

It is assumed that EVN has these abilities

It is assumed that EVN has these abilities
No experience with large amounts of
fluctuating wind power in the Vietnamese grid
No practical skills available

Provincial authorities have experience with

approval process but request guidance

Ability to check compliance between investors

documents and wind development master
plans are given on quantitative criteria but not
on qualitative criteria
Some consultants and provincial authorities
have good knowledge and master plans
approved
Other provinces need more knowledge and
preparation plans
Knowledge and experience are given with
concerned authorities for grid extension but
additional knowledge concerning special
requirements for power grids with high share
of wind power is needed
Expertise in interpretation of ESIA is given but
has to be transferred to DONRE and DARD

61
farms

S22: Capability to use

additional methods in
conflict management

S23: Ability to effectively

manage wind energy project
planning
S24: Advise project
investors, owners, bankers,
ministerial staff

S25: Knowledge in specifics

of wind energy projects
S26: Understanding of
special conditions for loans
for wind energy projects
S27: Ability to perform and
assess financial due
diligence
S29: Knowledge about tower
production
S30: Engineering knowledge
about production of rotor
blades
S31: Engineering knowledge
about generators
S32: Technical knowledge
about wind turbine and
component manufacturing
S33: Ability to plan and fulfil
EPC contracts for wind
farms
S34: Ability to manage
operation of a wind farm
S35: Operation and
maintenance of a wind farm

S37: Ability of technicians to

construct wind farms

opportunities to increase livelihood

To provide PPCs of different provinces which
face requests of investors for wind farm
projects with additional tools to mediate
conflicts on land use
Enable Vietnamese investors to manage wind
energy project planning and deploy different
consultants and EPCs to realize a wind farm
project
Enable Vietnamese consultants to make project
planning work, wind energy project specifics
known and support governmental planning
and decision making
Understanding of financial framework for wind
energy projects for bankers
Understanding of special conditions for loans
for wind energy projects for Vietnamese bank
staff
Assessment of potential risks from Vietnamese
bank staff
Local application

Production of rotor blades for local market and

export
Production of generators for wind energy
converter for local market and for export

Local production of components and turbines

Management of wind farm construction
projects for investors

Effective wind farm operation management

Operation and maintenance of wind farm
Provision turn-key wind farms for investors

S38: Editing and publishing

a comprehensive handbook
on wind energy basics

Edit and publish a comprehensive handbook

on wind energy basics

S40: Ability to prepare and

perform interdisciplinary
wind energy courses

Offer B.Sc. and M.Sc. courses and

workshops/trainings in RE with focus on wind
energy at Vietnamese universities and TVETinstitutions

S39: Ability to lecture basic

courses in wind energy

S42: Ability to efficiently

manage a national wind
energy association

S43: Capability to draft and

implement an HRD Master
Plan for RE
S44: Ability to design a
curriculum and train
technicians and O&M

Lecture workshops and trainings in wind

energy basics

Enable Binh Thuan Wind Power Association to

provide comprehensive advisory and
information to industry, government and other
stakeholders as well as to the public
Facilitate the provision of needed financing for
courses at universities in RE/wind energy
Urgent needed training for technicians for
installation and O&M of wind farms 41

Experiences in conflict management are given.

Modern conflict management/ mediation, and
participatory approach may be helpful
Wind energy project planning insufficient
Business plans are not bankable

Few consulting firms with experience, need

further training in many areas
Manager of banks have not yet granted
commercial loans for wind energy projects

No specific knowledge concerning financing of

wind energy projects
No experience with due diligence for wind
energy projects given
Towers are already produced in Viet Nam
No skills available

Several generator manufacturers but no one

producing wind turbine generators
It is assumed that good technical knowledge at
technicians level is given, but additional
training for wind specifics is necessary
No experience in EPC for wind farms
Only one EPC presently active

Interviewed wind farm operator stated urgent

need for this training
O&M technicians are already working at three
wind farms in operation
For future wind farms, additional O&M
technicians are needed
Technicians with experience in the power
sector are available but many more are
needed 40
Vietnamese experts write about the specific
Vietnamese situation but technical and
economical chapters should be taken from
international handbooks, reviewed by a team
of national and international experts
Lecturers at universities and TVET-institutions
do not have specific knowledge in wind energy
Technical knowledge in electrical engineering,
mechanical engineering, aerodynamics,
meteorology, and economics are given but with
no focus on wind energy and not offered in an
integrated /interdisciplinary program;
knowledge in wind energy specifics is scarce
Binh Thuan Wind Power Association has some
experience but need some upgrade in
proficiency and additional staff
HRDD needs support on how to draft a master
plan, coordinate and motivate universities to
offer courses in RE with focus on wind energy
General courses for technicians exist at
different TVET-institutions. They have to be
adapted to the specific needs of O&M

It is assumed that skilled technicians for construction and engineers with good technical knowledge are available.
Additional training in specifics for installation and commissioning of wind farms is needed.
41
They shall offer general 3-year courses with modules for wind energy technicians (installation and O&M) and 3-month
training courses for technicians with theoretical and practical experience.
40

62
personal
S45: Ability to develop and
perform upgrading training
modules in wind energy

Upgrading in wind energy training modules for

professionals of the power sector by EPU to
provide urgently needed experts 42

S47: Research and

development skills within
the industry

Allow the Vietnamese manufacturing sector

own development in the wind energy
technology in the long run

S46: Research skills in all

relevant fields for wind
energy

Basis for training courses at universities and

TVET-institutions and independent technical
development of wind energy in the long run

technicians

EPU has good knowledge in power engineering

but no knowledge in wind power
1 Professor doing research in RE, 2 PhD in
Wind Energy, 2 M.Sc. in Solar and Wind Energy
on HCM-University, at least 1 professor at
HUST is doing research in RE. No departments
for research in wind energy yet established
Besides tower manufacturing no wind energy
industry and R&D departments in industry are
established

The table above incorporates skills that have been identified during the preparation phase and
before conducting interviews. Some skills mentioned in chapter 4 and 5 are missing in this table.

The training should focus (inter alia) on grid integration of fluctuating wind power, on grid management and on turbine
technology.

42

63
Annex 3: Proposed content for grid integration training - S13.a
The following focus areas are proposed:

Regulations concerning grid connection points (responsibilities and share of costs);

Provision of grid specific data to allow the wind farm operator to comply with grid
compatibility requirements;
Regulations concerning provision of reactive power and reactive current through WTG
(concerning different grid codes for distribution and transmission lines);
Requirements concerning performance of WTG when grid problems occur;
Other regulations and requirements normally formulated in wind grid codes;
Handling spinning reserve and storage capacity;
Wind prediction methods;
Technical and economic planning of grid integration, grid extension and grid upgrading;
WTG modelling and simulation in dedicated software such as PSS/E;
Calculations and advanced studies (rotor angle, voltage, frequency stability, small signal);
Wind energy production forecast and estimation;
Structure and operation of wind farm and wind turbine.

Annex 4: Proposed content for wind energy basics handbook S38.a

Based on the conducted interviews a wind energy basics handbook should include the following
topics:
Meteorological and physical basics;
Wind prediction programs;
Balancing power and storage technologies;
Wind turbine technologies;
Aerodynamic basics;
Wind farm planning;
Grid connection and grid management;
Commissioning and operation of a wind farm;
Micro and macro-economic considerations;
Opportunities for locally added value;
CAPEX and OPEX;
Environment and social impacts;
Land occupation;
International wind energy deployment;
An introduction into wind farm management system with subchapters about wind farm
control, condition monitoring and production forecasting;
Estimates on technical and economic exploitable wind potential in Viet Nam;
Results of wind measurements and yield assessments;
Situation of distribution and transmission lines and capacities;
Estimated costs for upgrading and extending grids, costs for building substations;
Discussion on FIT to cover specific (higher) CAPEX and OPEX in Viet Nam.

64

Annex 5: Proposed content for consultants and project developers training S24.a
Based on the conducted interviews, training for consultants should include the following topics:
Wind Measurements according to DIN ISO/IEC 17025 and MEASNET standards
Power Curve Measurements (DIN IEC 61400-12-01)
Certification of measurement stations according to IEC standards
Remote sensing, data processing and analysis
LiDAR measurement
Turbulence intensity and extreme wind analysis
3D calculations/modelling for complex sites
Micro-siting and site optimisation
Bankable wind and energy yield assessments in accordance with international standards
Calculations of safety distances to roads, lines of rails
Sound and shadow flicker analysis
Noise emission prognosis to calculate acceptable distances to housing or working areas
Interpretation of environmental impact assessment
Approval planning
Land use clearing (methods of peaceful conflict resolution)
Turbine technology (generator, rotor, structural support components), local components
Electrical design (i.e. cable design; planning of the grid connection, network calculation,
communication concepts, etc.)
Wind grid codes (for transmission and for distribution lines) and compliance of the
planned turbines with the requirements of the grid (code)
CAPEX and OPEX modelling
TOR for wind farm projects
Management of tendering procedure
Technical contract negotiations/evaluation of proposals and bids
Negotiations on tax agreements, power purchase agreements, land use, interconnection
agreements
Planning/supervision of construction works (access roads, availability of crane,
foundations, towers, assembly of all components)
Pre-feasibility and feasibility study
Approval/licensing procedure
Financing schemes and negotiation with banks/investors
Cash flow calculation
Calculation of costs for grid integration
Acquisition of equity and loans
Bankable PPAs; Installation
Supervision of construction works, commissioning
O&M concepts and performance based operation concepts
Basics in meteorology, basics in aero dynamics, basics in control of rotating machinery, etc.

65
Annex 6: Proposed content for EVNNLDC training S14.a 43
1. Overview of wind power deployment in the world
- Potential wind capacity and intermittent feature
- Wind power penetration, absorption ratio of wind turbine in electric power system
- State-of-art technologies being applied to wind turbine
- Legal framework and legislative incentives in investment, feed-in tariff etc.
2. Structure and operation of wind farm and wind turbine
- Wind turbine categories and wind farm operation modes
- Wind-turbine and wind farm: dedicated control system, operating curves (P-Q, f-V
responses, etc.)
- Control capabilities for wind plants such as flexible curtailment and ramp control,
inertial response, artificial governor/droop capabilities
3. Wind energy production forecast and estimation
- Necessity of wind forecast, discussion in case of Viet Nam
- Forecast method, data collection and statistics needed, current tools and/or software
application
- System operator manipulation of wind data
- Wind power plant commitments, and unit scheduling
4. Grid impacts of wind farm
- Wind turbine modelling and simulation in dedicated software such as PSS/E:
+ Main parameters for modelling
+ Library of standard models for wind turbine, generator, governor, excitation
system
+ Capability of user-defined model build-up
- Calculations and advanced studies (rotor angle, voltage, frequency stability, small
signal) be considered
- System operation and dispatching perspective:
+ Reactive power demand and compensation requirement
+ Outage management, system restoration, interconnection issue
+ System security and reliability including ancillary service to deal with wind
variation
+ Operating procedure of wind farm
+ Key performance indices for wind plant operation, Operating cost impacts of
wind energy
+ Electricity market implication
5. Wind power integration standards, legal framework and grid code
- Requirement in planning and design, connection, energizing,
- Harmonic wave, short-circuit standards
- SCADA/EMS equipment
- Relay protection for wind turbine/wind farm

43

Dedicated training necessity, sent per mail by EVNNLDC.

66
Annex 7: List of interviewed stakeholders
Interviews
Beate Dittmar, Lisa-Marie Kreibich
Do Thi Bich Ngoc

Prof. Dr. Sc. Long, Hanoi University of Science and Technology, permanent member of an
advisory team to MOIT
Nguyen Duc Cuong, Director, Centre for Renewable Energy & Clean Development
Mechanism, Institute of Energy

Organisation
GIZ TVET

KfW Hanoi
HUST
IE

Pham Tong Thuc, Director New and Renewable Energy Department, General Directorate of
Energy, Ministry of Industry and Trade

GDE-DNRE

Nguyen Thu Linh Relationship Manager, Financial Institutions Department; Pham Manh
Thanh and Tran Minh Hung, Corporate Banking Department (welcome by Ms Linh, Nguyen
Thu)

Vietcombank

Ms Dao Minh Hien, Director of Planning and Demand Supply Balance Monitoring Division;
Mr Nguyen Quang Minh, Deputy Director; Mr Tu Van Hung, Mr Ho Duc Linh, Official
Mr Nguyen Duc Ninh, Deputy Director, EVN National Load Dispatch Centre; Mr Phan Thi
Bich Hong, Expert
Mr Bui Van Thinh, EVN Power market department

Mr Tang The Hung, Deputy Director, Ms Nguyen Thi Thuong, Official, Planning
Department, General Directorate of Energy
Ms Pham Thuy Dung, Official

HR Department, MOIT' Ms Nguyen Thi Lam Giang, Head of General Affairs Division; Mr Dr.
Nguyen Tuan Anh, Human Resources Department, Ministry of Industry and Trade
Nguyen Thi Phuong, Bin Thu Trang, Chu Thi Viet Lea, Truong Nguen Nunh, Do Tien, Bank
of Investment and Development of Viet Nam
Mr Nguyen Van Vy, Government office

Mr Dr Dinh The Phuc, Deputy Director General, Mr Nguyen The Huu, Deputy Director of
Planning and Demand Supply Balance Monitoring Department, Mr Nguyen Quang Minh,
deputy Director of Planning and Demand Supply Balance Monitoring Department,
Electricity Regulatory Authority of Viet Nam, Ministry of Industry and Trade
Prof Mr Nguyen Phung Quang, Prof. Ms Nguyen Pham Thuc Anh, Hanoi University of
Science and Technology (HUST) and Prof. Vo Huy Hoan, Electrical Power University (EPU)
, (Joint meeting)
Assoc. Prof. Dr. (Mr) Dinh Thanh Viet, Department of Higher Education Quality Assurance
(previously: Center for Alternative Energy Research and Application), University of
Danang.
Mr Bui Van Thinh, CEO of Thuan Binh Wind Power Joint Stock Company

Mr Nguyen Khac Duy, Manager, Corporate Banking Department, Sai Gon-Ha Noi
Commercial Joint Stock Bank, Saigon Branch
Mr Le Quoc Viet, Planning Manager, Saogon Invest Group

Mr Le Minh Hien, Project Manager, Wind Power Viet Nam LLC.

Mr. Nguyen Viet Lap, Assistant to Board of Directors, Mr. Lam Hoai Vuong, Deputy
Manager of Renewable Energy Department; Power Engineering Consulting Joint Stock
Company 4

ERAV

EVN
GDE-PD

GDE-DNRE
MOIT HRD
BIDV

Government
Office
ERAV

HUST

University of
Danang
EVN TBW
SHB
SGI

wpv

PECC4

67
Dr.-Ing. Tuan Do-Hong, Dean of a Faculty of Electrical and Electronics Engineering, HCM
University
Interviews
Mr. Son; Director Peoples Committee of Soc Trang

Mr Trang, Directo; Mr Thanh, Manager of Power Management Department; Department of

Industry and Trade (DOIT-Soc Trang)

HCMUT
Organisation

PPC Soc Trang

Mr Pham Ngoc Hue, Vice Director, Provincial Department of Construction (DOC); Mr Pham
Cong Danh, Vice Director, Provincial Department of Natural Resources and Environment
(DONRE); Mr. Tran Trong Khiem, Director of Forest Inspection Division of Agriculture and
Rural Development (DARD); Mr Tran Quoc Khoi, manager of comprehensive division,
PPC Soc Trang
Department of Planning and Investment (DPI); Mr Le Minh Tranh, Specialist, Provincial
Department of Science and Technology; Mr. Nguyen Minh Trung; Promotion Center part
of DPI.
Mr Tran Trung Vi, Vice manager of Office, PPC Bac Lieu

Mr Phan Van Sau, Vice Director, Mr Tran Danh Tuyen, Vice Director, Mr Nguyen Van Ha,
Manager of planning and financial division, Provincial Department of Industry and Trade
(DOIT); Mr Lu Thanh Tung, Vice Director, Provincial Department of Natural Resources and
Environment (DONRE); Mr. Bui Minh Hai, Vice Manager of foreign business affairs
Division; Provincial Department of Foreign Affairs; Mr Huynh Khac Hung, Construction
management division, Provincial Department of Construction (DOC); Mr Nguyen Tan
Khuong, Vice Director, Provincial Department of Agriculture and Rural Development
(DARD); Mr Ngo Quang Lam, Director, Promotion Center, part of DPI.
Mr To Cong Ly, Vice Director General, Mr Terry Thinh Vu, Deputy Director-Chief financial
Officer, Cong Ly Construction, Trade, Tourism Co., LTD
Mr Dng Tn Long, Director of Energy Section, Provincial Department of Industry and
Trade, Binh Thuan
Mr Bui Van Tien, Chief Operating Office, Viet Nam Applied Technical Company, LTD
(Vatec), Nha Trang City

PPC Bac Lieu

Bac Lieu Wind

Farm
DOIT Phan
Thiet
Vatec

In addition, questionnaires were completed by:

Interviews

Mr Nguyen Du Minh, Vice Director, National Load Dispatch center, EVNNLDC

Ms Nguyen Thi Thuong, Official, Planning Department, General Directorate of Energy, Ministry of Industry
and Trade (MOIT-GDE-PD)

Mr Bui Van Tien, Chief Operating Office, Viet Nam Applied Technical Company, LTD (Vatec), Nha Trang City
Mr Lam Hoai Vuong, Eng., Deputy Manager of Renewable Energy Department, POWER ENGINEERING
CONSULTING J.S. COMPANY 4 (EVNPECC4)

Mr. Nguyen Hoang Dung, Director of Renewable Energies Dept., Power Engineering Consulting Joint Stock
Company 3 (PECC3)

Face-to-face interviews have been held with 62 experts at 42 institutions/departments plus 1

interview with 1 organization exclusively by mail/questionnaire. Interviews with head of
departments / directors and with officials of the same department have been counted as 2
institutions only when the interviews have been made on different days. Four experts from four
institutions/organizations have additionally used the questionnaire to send supplementary
information by email 44.
44

All questionnaires and interview records can be made available upon request by GIZ.

68