Speaking to correspondents at a regular ministry press briefing, Hoang Tien Dung, head of the Electricity and Renewable Energy Authority, said many localities had sought an extension for three to six months since southern provinces, where many wind power plants are coming up, have had long lockdowns due to Covid-19, which have slowed down constriction progress.

The FITs for offshore and onshore wind power currently stand at 9.8 cents and 8.5 cents per kilowatt-hour applicable for 20 years for plants that begin commercial generation before Nov. 1.

For plants built after Oct. 31 prices will be determined through a bidding mechanism.

Under the mechanism, which is being developed by the Ministry of Industry and Trade, wind power plants will negotiate electricity prices with buyers based on a price frame announced annually by the ministry.

According to data from national utility Vietnam Electricity (EVN), 106 wind power plants are registered, of which 21 with a total capacity of 819 MW are already operational.

FIT is a policy mechanism designed to speed up investment in renewable energy technologies by offering long-term contracts to renewable energy producers.

Its goal is to offer cost-based compensation to renewable energy producers, providing price certainty and long-term contracts which help finance renewable energy investments.

At the press briefing, Deputy Minister of Trade and Industry Do Thang Hai said his ministry would consider further reducing electricity prices by 10-30 percent to benefit businesses hit by the pandemic.

Since 2020, the EVN has lowered prices five times, for commercial and household users.