There is a ‘wind power rush’ in Mekong River Delta as many investors race against the clock to set up wind power projects to be able to enjoy the selling price of 9.8 cent per kwh for offshore projects and 8.5 cent for onshore ones.

In late February 2020, Janakuasa Pte Ltd (Singapore) and Ecotech Tra Vinh (Vietnam) organized the groundbreaking ceremony to build the 78 MW Hiep Thanh windpower plant in Tra Vinh province.

The project has investment capital of VND3.4 trillion, covering 2,800 hectares of land and water surface and puts out 300 million kwh a year. The first turbine is scheduled to become operational by early 2021 and the whole project would be completed by mid-2021.

However, Ti Chee Liang, president of Ecotech Tra Vinh, said the plant may be put into commercial operation sooner than scheduled.

If Vietnam can create reasonable policies and keep strict control over the development, it may become an emerging market in the wind power industry.

Some days ago, the construction of the plant No 3 of BPP Vinh Chau Wind Power with the investment capital of VND1.365 trillion and the capacity of 29.4 MW for the first phase started in Soc Trang province.

On March 5, another wind power project, 129 MW, kicked off in Vinh Chau commune of Soc Trang province by Quoc Vinh Soc Trang Wind Power.

According to the Electricity of Vietnam (EVN), as of the end of January 2020, besides the nine projects which got certificates for commercial operation, there are other 31 projects with total capacity of 1,645 MW which have signed PPA (power purchase agreements). Another 60 projects with total capacity of 2,700 MW have been added to the national wind power development plan by 2025.

Scott Powers from Siemens Gamesa Renewable Energy Vietnam, commented that with the electricity prices (8.5 cent and 9.8 cent, which are higher than the 7.8 cent level mentioned in 2018) applied until November 2021, Vietnam may become an emerging market in the wind power industry.

The company has signed contracts on providing equipment to 700 MW wind power in Vietnam, or seven or eight projects.

But there are still many things investors need to consider before making investment decisions.

Ti Chee Liang said there are still no detailed regulations on sea surface rents, therefore, investors have to discuss with the Ministry of Natural Resources and Environment (MONRE) about the renting of the sea in accordance with the turbine pole area or the whole sea surface.

There are also no regulations about incentives in sea surface renting and tax incentives. 

Mai Lan

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