Binh Dinh is the first province in Vietnam to have wind power projects. Apparent advantages of wind power are clean energy source and environment-friendliness; investment value for wind-to-power plants is smaller than for other forms of energy while wind power plants are flexibly located. However, wind power in Vietnam is still underinvested because of many difficulties from natural conditions, weather, technology, and especially investment rates to high selling prices of electricity.
According to the Electric Power Development Plant in the 2011 - 2020 approved by the Prime Minister, Vietnam will need 194 - 210 billion kWh of electricity in 2015, 330 - 362 billion kWh in 2020, and 695 - 834 billion kWh in 2030. The power industry is forecast to need VND929.7 trillion (US$48.8 billion) for power development investment from now to 2020. The projected investment value from 2011 to 2020 is some VND2,359 trillion (US$123.8 billion).
Electricity price will be built on fuel prices, exchange rates and power production structure. Power prices will be adjusted step by step. By 2020, a kWh of electricity is forecast to 8-9 cents instead of the current 6 cents.
According to the plan, Vietnam will give priority to developing renewable energy sources for production and will raise the proportion of this energy from 3.5 percent of power output in 2010 to 4.5 percent in 2020 and 6 percent in 2030. The capacity of wind-to-power sources will be increased from the current negligible volume to 1,000 MW by 2020 and 6,200 MW by 2030. The total capacity of hydropower will rise from 9,200 MW at present to 17,400 MW by 2020. Nuclear power will be put into operation in 2020 and the capacity will reach 10,700 MW in 10 years later.
Together with developing traditional power projects, wind-to-power development projects are catching high public interest. However, according to the Ministry of Industry and Trade, wind power application in Vietnam is now at the fledging stage with a total designed capacity of just 9 MW, including 7.5 MW connected to the grid. Household turbines (150 - 200 W) are not connected to the national grid.
Investment unit in wind power remains relatively high and volatile in both Vietnam and the world. The peak is US$2.77 million per MW and the bottom is US$1.77 million, averaging US$2.2 million.
Currently, Vietnam is planning to build 21 wind power plants, having an individual capacity of 30 MW and installing 1.5 MW turbines. These projects are concentrated in Binh Thuan, Ninh Thuan, Binh Dinh and Lam Dong provinces where a designed capacity of wind power may reach 2,000 MW.
In reality, a 4-kW wind power station can generate enough electricity for a ranger station in the jungle or a far offshore lighthouse. A 10-kW station produces enough electricity an outpost station. A 40-kW station can feed energy demand on an upland province.
For example, when wind power plants, Phuong Mai 3 and Phuong Mai 1, with a design capacity of 51 MW start operations, it will transfer nearly 150,000 MWh to the national grid. This will help ease current power shortage.
However, Vietnam lacks a master plan for wind-to-power development strategy for provinces and cities to follow. Worse, selling price of wind power remains unsettled.
Mr Nguyen Ngoc Toan, Deputy Director of Binh Dinh Economic Zone Management Boad, said: In 1997, Binh Dinh established a wind-to-power generation joint venture to produce electricity. However, the construction on Phuong Mai plants started in 2006 after many delays.
Thus far, wind-to-power development projects are going very slowly because of many reasons but the biggest reason is electricity price sold to the Electricity of Vietnam (EVN). Previously, EVN only bought at 4 cents per kWh but wind power investors did not agree. In December 2010, the Prime Minister asked EVN to hike purchasing prices of electricity to 12 cents per kWh to prioritise and accelerate clean energy development. Once completion, wind power plants will sell electricity directly to EVN. Presently, the People’s Committee of Binh Dinh province has also expressed its determinations to build wind power plants to take the lead in clean energy development in the country.
Deputy Prime Minister Hoang Trung Hai demanded authorities to clarify incentive mechanisms to attract more investors into wind power.
Remarkably, Deputy Prime Minister also required competent bodies to build a consistent legal framework for investment supporting polices on wind-to-power projects in particular and renewable energy projects in general.
Thu Hang
Vietnamese
