This huge project will require total investments of at least US$12bn and will be carried out in several 600 MW phases. It will consist of 9.5 MW wind turbines supplied by Mitsubishi Vestas Offshore Wind, a joint venture (JV) of Vestas Wind System and Mitsubishi Heavy Industries.
The project's main challenge is the power selling price. In September 2018, Vietnam introduced a 20-year feed-in-tariff (FiT) for onshore wind power projects standing at VND1,928/kWh (US$8.5c/kWh) and a FiT for offshore wind projects standing at VND2,223/kWh (roughly US$9.8c/kWh). The FiTs will be valid for projects scheduled to enter commercial operations before November 2021. However, the first phase of the Ke Ga project will not begin operation before 2022, and the price of wind electricity at this date is still unclear.
The Vietnamese government targets 6,000 MW of wind power capacity (from the current 197 MW) and 12,000 MW of solar capacity (currently less than 100 MW) by 2030. The development of Ke Ga will significantly contribute to this objective.