Considered the country’s “capital of wind power” with as many as 20 wind
power projects planned for development until 2020, yet the south central
province of Binh Thuan is not likely to meet capacity targets as investors are
discouraged by the long time to recoup their investments.
Under the development master plan
for the 2011 – 2020 period, the wind farms in Binh Thuan are expected to reach
the installed capacity of 700MW, with nearly 1,500 kWh of total equivalent wind
power output.
“But the target seems
unfeasible,” said Duong Tan Phong, head of power and energy management of the
provincial Department of Industry and Trade.
“The best we can do is to make it
to only 500MW,” he admitted.
The largest obstacle at the
moment is the lack of capital from the investors, he analyzed.
“A turbine for wind power costs
millions of US dollars, but it takes quite a long time to recoup investments.
“So it’s difficult to attract
investors,” he concluded.
In 2010 the PV Power RE Co Ltd
broke ground on the Phu Quy wind power project with three turbines.
The VND335-billion project with a
total capacity of 6MW officially became operational last August with the first
two turbines beginning supplying power for the area. (VND1 billion = US$48,000)
But the company will have to
earmark some VND10 billion on an annual basis in order to offset losses from
the project, company director Pham Cuong said.
“The power produced by the wind
farm is bought by the local power sector at 6.8 cent, plus 1 cent subsidized by
the government,” he said.
“But we will only be able to
break even at 10.36 cent a kWh, although it will also take as long as 12
years.”
Meanwhile in Tuy Phong District,
the wind power produced by the project of the Renewable Energy Vietnam Co (REV)
has been connected to the national electricity system.
The VND1-trillion project
consists of 20 turbines with total capacity of 30MW, and it will also take it a
long time to recoup investment given the current power buying price, a company
representative said.
TUOITRENEWS
Business & Investment Opportunities
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