Vietnam probes 32 wind and solar projects amid 'blazing furnace' anti-corruption drive

The Vietnamese government has launched a probe into 32 wind and solar projects over allegations of abuse of power, according to local media, as the country continues its “blazing furnace” anti-corruption crackdown.

Authorities have asked Vietnam Electricity (EVN), the national transmission and distribution company that holds a monopoly over the country’s grid system, to provide documents and other information to support the probe.

They reportedly include documents concerning the signing of power purchase agreements and inspection records for the wind and solar farms.

Hung Hai, Ia Bang 1, Cuu An and Ia Le 1 are four wind projects named as being involved in the probe, with the first two reportedly sporting Siemens Gamesa and Vestas turbines, respectively.

Vietnam, a one-party Communist state of 100 million people, is currently engaged in a wide-ranging anti-corruption crackdown known as “blazing furnace”. This has led to high-level arrests – including of several government ministers – and resignations.

Vietnam’s burgeoning renewables sector has not been spared. The country generates almost half its electricity from renewables, mostly hydropower, making it a leader in the sector in South East Asia.

But the officials leading the country’s renewables drive have reportedly been blamed for licensing and certification violations. Former deputy trade minister Hoang Quoc Vuong, who oversaw areas including electricity and renewable energy between 2015 and 2020, was arrested in January.

Officials have been blamed for a massive overbuild of wind and solar installations compared to government targets, with the country’s wind and solar capacity reportedly reaching 22GW last year, sparking concerns over whether its grid is prepared for that much variable power generation.

A generous previous feed-in tariff regime has also reportedly put strain on EVN and the state, leaving them paying above market rate for wind and solar power.