Over $13 billion in solar, wind investment at risk in Vietnam, industry letter says

Power-generating windmill turbines are pictured at a wind park in Bac Lieu province

Summary:

Investors urge Vietnam to not retroactively change power prices
Projects struggle to pay debt, letter warns of wider bank risks
Vietnam wants to greatly expand renewable energy capacity

HANOI, March 10 (Reuters) – More than two dozen foreign and Vietnamese investors, including Adani Green Energy (ADNA.NS), opens new tab, have warned Vietnam’s plans to retroactively change rules on subsidised prices for wind and solar energy could affect more than $13 billion of investments.

In a letter to Vietnamese leaders dated March 5 and reviewed by Reuters, the investors expressed “deep alarm” about the possible end of favourable energy tariffs, noting the policy change could undermine broader financial stability and erode confidence in Vietnam at a time when the country plans to significantly expand its renewables capacity.

According to Reuters