HCM CITY – The People’s Committee of Ninh Thuận Province, a typically hot and dry area, has urged investors to focus on solar and wind energy projects.   

The province is less affected by storms than other areas in the country, and has become known as the renewable energy centre in Việt Nam.

Ninh Thuận Province has approved nine wind power projects and total investment of VNĐ26.5 trillion. It has also approved 22 solar energy projects, with total capacity of 1,259 MW.

However, the development of those projects have been implemented at a snail’s pace.

Among the nine approved wind power projects, only four are under construction including Công Trung Nam, Phước Dinh and Đầm Nại, according to Ninh Thuận Industry and Trade Department.

On January 23, construction began on the first solar energy plant by BIM Group (Vietnam) and AC Energy (Philippines), with total investment of VNĐ800 billion (US$35 million) and 90,000 solar panels in Phước Minh Commune in Thuận Nam District.

The second, Bầu Ngữ project, has begun construction since March 31, with a combined capacity of 50MW and total investment of VNĐ1 trillion. 

Two other solar projects are due to be built in June this year.

The 18 remaining solar energy projects are still on paper.

The Ninh Phước District have the most with 9 solar projects with total capacity of 308MW and total investment of VNĐ 9.2 trillion.   

The chairman of Ninh Thuận People’s Committee, Lưu Xuân Vĩnh, said the high cost and land clearance for construction of wind and solar power plants were the main reasons that have deterred many investors.

“However, if investors don’t have enough capacity and experience, we will withdraw their investment licences,” he said.

According to the Ministry of Industry and Trade, investment in wind and solar power costs more than traditional electricity.  Additionally, mobilising capital from banks is also difficult for investors. – VNS