Vietnam - Wind taken out of project’s sails

Belgium-backed Phuoc Nam-Enfinity renewable energy project in southern Ninh Thuan province will delay construction to late 2012.

Tran Khang Thuy, director at Ho Chi Minh City Economics University’s Centre for Economic Studies and Applications (CESAIS) - the partner of Enfinity Group’s Enfinity Asia Pacific Limited for Vietnam-based wind and solar power production projects - said the project was in the process of negotiating the land acquisition cost for 553 hectares it was given with Ninh Thuan Department of Natural Resources and Environment.

“Land acquisition costs will be set at pragmatic levels to ensure project’s facilitation since project’s start-up depends chiefly on this phase progress,” said Thuy, adding that actual land given to investor, for some reasons, was just one third 553ha out of 1,767ha as the provincial management was ratified in Document 554/UBND-TH dated February 5, 2010.

The change forced the investor to re-process project records as well as recalculate the capacity and positions to install wind turbines. Besides, since the investor was just allowed to deploy a wind power farm first instead of simultaneously carrying out solar and wind power farms as proposed, so that the investor was reportedly considering hiking wind turbine capacity from 1.5 megawatts to 2.3MW or more each to ensure economic efficiency.

“We are drawing project records and negotiating with foreign consultants on project appraisal before joining hands with Vietnamese consultants on investment project establishment,” said Thuy, adding that the whole process can be finalised by February 2012.

Parallel to quickening the wind power project pace, the developer reportedly completed the solar power plant’s investment report with a proposed rate of 15UScents/kWh instead of 19.3UScents/kWh as set initially. The report will be submitted to ask for investment certificate in early 2012.

Enfinity Ninh Thuan Company Limited is in the process of negotiating with world’s wind power equipment suppliers for project equipment and technology solution procurement, said Thuy of CESAIS.

In early November 2011, Vietnam Fuhrlaender Wind Power Joint Stock Company rubber stamped a contract on complete installation of a wind measuring facility for Ninh Thuan Enfinity Company at the project site.

“Wind data procurement is crucial at this point at time for drafting project investment records as well as implementation plan since former data was collected in 2006 then needed to be updated especially when we decided on hiking turbine capacity,” said Thuy.

Initially, Enfinity proposed to develop three renewable power projects in Ninh Thuan including a 282MW solar power farm covering 560ha and two wind farms with a combined capacity of 240MW. However, the government just green-lighted its one $251 million, 124.5 MW wind power farm proposal while other projects are pending governmental approval.

Khanh An | vir.com.vn

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Mongolia - Wind energy project in Mongolia

The $100 million wind energy project will be located 70 kilometers southeast of Ulaanbaatar, Mongolia’s capital city, and is set to open in 2012. Mongolia’s electricity demand is expected to double in the next 15 years.

Salkhit Wind Farm, powered by General Electric’s 1.6 MW wind turbines, will generate 5% of Mongolia’s electricity.

The entry into Mongolia is a strategic move by General Electric (GE) that recognizes the burgeoning demand for renewable energy in growing regions around the world—including Asia, Africa and Latin America. It highlights GE’s global growth strategy in one of Asia’s fastest growing and richest natural resource countries.

Electricity demand of Mongolia is expected to double in the next 15 years. The GE turbines powering Salkhit Wind Farm will generate nearly 5 percent of Mongolia’s current electricity.

GE’s involvement in the Salkhit Wind Farm project includes equipment supply and technical assistance in the installation and commissioning of the wind turbine generators for the generation of wind power. GE was represented at the signing ceremony by Vice Chairman and CEO of GE’s Global Growth & Operations John Rice. He was joined by Bayanjargal Byambasaikhan, CEO of Newcom. “Energy demand in Mongolia is increasing by 8 to 10 percent a year,” said Byambasaikhan. “Salkhit will help support Mongolia’s growing demand and help facilitate further infrastructure development for railway, road and electrical infrastructure.”

In 2005, Mongolia’s parliament approved the National Renewable Energy Program, which aims to increase the country’s renewable energy share to 20 to 25 percent by 2020. Mongolia’s current installed capacity is roughly 800 megawatts (MW). “This is a milestone in the development of GE’s relationship with Mongolia and our teaming with Newcom. We are introducing advanced technology that paves the way for renewable energy projects and underscoring our commitment to grow in one of the most challenging yet fastest-growing emerging regions,” said Rice.

Mongolia is becoming one of the world’s fastest growing economies, registering the highest growth in the world at 17.3 percent by the first half of 2011 year on year, according to the World Bank. Energy demand is expected to double by 2015. Salkhit Wind Farm will supply 168 million kwh of clean power to the national grid each year. It also will cut CO2 (carbon dioxide) emissions by 185,000 tons and preserve 1.6 million tons of fresh water annually.

The event follows the signing of a memorandum of understanding in September 2010, in which GE and Newcom agreed to explore alliances in key areas such as energy, water, mining, aviation, railway, lighting and healthcare. It follows the opening of GE’s representative office in Ulaanbaatar in May this year.

Mongolia is home to some of the world’s largest coal and copper deposits and has vast wind energy potential. Located in northern Asia between China and Russia, Mongolia, about the size of Alaska, has a population of less than 3 million people.

While the Mongolian government pushes its vast reserves of natural resources to help meet the demands of countries such as China, Japan, South Korea and other growing Asian countries. It also is keen to explore renewable energy sources and cleaner technology to protect its environmental assets and support its growing population.

The Salkhit Wind Farm will have an initial installed capacity of 50 MW and will feed into Mongolia’s Central Energy System. GE will supply 1.6-MW wind turbines that will have an 82.5 meter rotor and 80 meter hub height for IEC class IIa wind conditions.

The advanced technology machine builds on the success and the global experience of GE’s 1.5-MW wind turbine, the industry’s most widely deployed megawatt-class machine with more than 17,000 installed worldwide.

http://ubpost.mongolnews.mn/index.php/2011-07-03-14-20-47/26-business/6695-wind-energy-project-in-mongolia

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