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VietNamNews

Foreign investors interested in wind power development

Update: August, 25/2018 - 09:00
A view of a wind power plant in the Mekong Delta City of Bạc Liêu. — VNA/VNS Photo Ngọc Hà
Viet Nam News

HÀ NỘI — Foreign investors have shown considerable interest in developing wind power in Việt Nam.

The People’s Committee of the Mekong Delta province of Trà Vinh has allowed three investors to finance the construction of the Hiệp Thạnh Wind Power Plant, with total investment of VNĐ3.37 trillion (US$146.5 million).

Of the figure, 20 per cent is contributed by those three investors, including the Hà Nội-based Ecotech Việt Nam Company, Janakuasa Singapore Pte Ltd, and Lâm Minh – a resident of Hà Nội’s Ba Đình District. The remainder is from a loan supplied by German bank Landesbank Baden-Wurttembrg (LBBW).

The investors have set up the Ecotech Trà Vinh Renewable Energy JSC to carry out the project.

General Director of Ecotech Trà Vinh Lâm Minh said the project had been included in the provincial power development plan for 2016-25 with a view to 2035, approved by the Ministry of Industry and Trade on May 19, 2016. It is expected to be put into operation in the first quarter of 2020.

Minh said the selling price of wind power had been set at 7.8 US cents per kWh according to the Prime Minister’s Decision 37/2011/QĐ-TTg on the mechanisms supporting the development of wind power projects in Việt Nam. However, this price remains low, making it difficult to attract investors.

President and CEO of Janakuasa Việt Nam Ti Chee Liang said the Malaysian energy firm was building its first project in the province’s Duyên Hải Commune with a capacity of 1,200MW and an investment of $2.2 billion.

The project is part of the national electricity development scheme for the 2011-20 period with a vision to 2030, he said, adding that Việt Nam had become one of the countries with the most development potential in ASEAN.

He hoped that the Vietnamese Government would study and recalculate the price of wind power – which is worth 7.8 US cents per kWh – at a more reasonable level to ensure fairness between renewable energy resources. 

During the construction of the wind power plant in Trà Vinh, investors would be responsible for complying with local requirements, ensuring environmental protection and minimising the effects to local aquaculture, he said. 

Thailand’s Ratchaburi Energy Co Ltd is also keen to develop renewable energy, particularly wind power in Việt Nam. Its director Peerawat Pum Thong said the company hoped to invest in the field and help Ecotech implement the project. 

The Hiệp Thạnh Wind Power Plant is the fourth of its kind to receive an investment licence from local authorities. Previously, the province granted investment licences to three wind power projects with a combined capacity of 192MW in Trường Long Hòa Commune of Duyên Hải Town, and Đông Hải Commune of Duyên Hải District. 

According to the provincial wind power development plan through 2020 with a vision to 2030 approved by the Ministry of Industry and Trade on December 4, 2015, Trà Vinh plans to build six wind power projects in coastal areas in Duyên Hải District and Duyên Hải Town, including three in Trường Long Hòa Commune, two in Hiệp Thạnh Commune, and one in Đông Hải Commune. 

Under the national energy development strategy, Việt Nam will strive to increase new and renewable energy sources to 5 per cent of the total commercial primary power by 2020, and 11 per cent by 2050. 

The country also aims to increase the total capacity of wind power to 1,000MW by 2020 and 6,200MW by 2030. — VNS

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