Economy
Contracts worth $286.3 million inked at Việt Nam Int’l Defence Expo 2024
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| The Phú Lạc wind farm in the south-central province of Bình Thuận began operation last month. VNS Photo Nguyễn Thanh |
Viet Nam News
HCM CITY — The Bình Thuận Wind Power Association has asked the Ministry of Industry and Trade to raise the selling price of wind power to US$9.5-10 cents per kWh, up from the current $7.8 cents.
The Ministry of Industry and Trade has reportedly sent a proposal about the price to the Government.
Bùi Văn Thịnh, chairman of the Bình Thuận Wind Power Association, said as many as 19 wind power projects had been registered in the south-central province of Bình Thuận, but work on them had yet to begin.
Investors had postponed the projects because regulated prices for this source of energy were below production costs, he said.
“The investors are hopeful that the Government will raise the price,” Thịnh said.
The number of wind power projects in Việt Nam remains low since only wind turbine towers, accounting for 20 per cent of production costs, can be produced locally, while investors have to import the remaining components.
Việt Nam plans to produce propellers valued at 10 per cent of the investment cost, turbines worth 7 per cent of the cost, and several other small components.
A South Korean firm in Bà Rịa-Vũng Tàu Province produces wind turbine towers, while a US company manufactures turbines in the northern port city of Hải Phòng.
"If the wind power market achieves strong growth in the future and attracts foreign investors capable of producing complicated parts, we will be able to raise the localisation ratio to more than 40 per cent," Thịnh said.
With a price of only 7.8 cents per kWh, investors find it difficult to recover capital.
For example, China has reached a localisation ratio of almost 100 per cent for their wind power projects, but the selling price of the energy stands at $8-10 cents per kWh, according to Thịnh.
Việt Nam needs to switch to renewable energy such as wind and solar power as the country has cancelled its first two nuclear power projects and has started implementing commitments on reducing greenhouse gas emissions, experts have said.
The country’s total wind power output has reached only 160MW, far below the huge potential that exists in the country.
The Government has released its National Electricity Development Plan for the 2011-2020 period with a strategic priority on renewable energy, with wind power capacity targeted at 800 MW by 2020 and 6,000 MW by 2030.VNS
