Wind Power Project

The primary fuel source for power generation from coal, oil and gas is gradually exhausted. Sustainable energy development is a top concern of countries around the world to ensure long-term energy/electricity supply and minimize environmental impacts. Using renewable energy sources such as wind energy with great potential has become an inevitable development trend of many countries, of which Vietnam is being known as a model in the region in terms of policies to encourage and the very rapid development of renewable energy.

In the first article of the topic, we will summarize the situation of wind power development in Vietnam (including policies and incentives for wind power, wind potential characteristics and assessment of progress of projects). wind power project is underway).

1/ Policy on electricity purchase and incentives for wind power

In Vietnam, the Government has encouraged businesses to invest in the field of electricity from renewable energy, especially wind power, which has had preferential policies since 10 years ago: the Prime Minister issued Decision No. 37/2011/QD-TTg issued on June 29, 2011 on the mechanism to support the development of wind power projects in Vietnam. The incentives in the above Decision 37/2011/QD-TTg include:

- Responsibility to purchase electricity from wind power projects: The electricity buyer is responsible for purchasing all electricity produced from grid-connected wind power plants in the area under his/her management. The purchase and sale of electricity is done through a power purchase agreement. The contract period is 20 years from the date of commercial operation. The Seller may extend the contract period, or sign a new contract with the Buyer according to current regulations. Incentives on investment capital, taxes and fees:

  • Investors may mobilize capital in the forms permitted by law from domestic and foreign organizations and individuals to invest in implementing wind power projects.

  • Wind power projects are entitled to incentives according to current regulations on investment credit of the State.

  • Wind power projects are exempt from import tax on goods imported to create fixed assets of the project, imported goods being raw materials, supplies, and semi-finished products that cannot be produced domestically and which can be imported for service. Project's production in accordance with the provisions of the Law on Import Tax and Export Tax and the provisions of the current law on export tax and import tax.

  • Wind power projects are implemented like projects in the fields of special investment incentives specified in the Investment Law, the Law on Corporate Income Tax and guiding documents on the implementation of the Investment Law and the Law on Income Tax. enterprise.

- Incentives on land infrastructure: Wind power projects and works of transmission lines and substations to connect to the national power grid are exempted or reduced from land use fees and land rents in accordance with current laws. applicable to projects in the fields of special investment incentives. Support for electricity prices for grid-connected wind power projects: The electricity buyer is responsible for purchasing the entire electricity output from wind power projects at the purchase price of electricity at the time of delivery (equivalent to 7.8 UScents/kWh). . The electricity purchase price is adjusted according to the fluctuation of the VND/USD exchange rate. The State supports electricity prices for electricity buyers for the entire electricity output purchased from wind power plants of 1.0 UScents/kWh (included in 7.8 UScents/kWh) through the Environmental Protection Fund. Vietnam. By 2018, the Government had issued Decision No. 39/2018/QD-TTg amending and supplementing a number of articles of Decision 37.

Accordingly, the electricity price is adjusted up, excluding value added tax (VAT), respectively: Inland wind power is 8.5 Uscent/kWh; Wind power at sea is 9.8 Uscent/kWh. The Government stipulates that the electricity buyer - EVN, or authorized units, is responsible for purchasing the entire electricity output from wind power projects at the price at the point of delivery and receipt of electricity as above. This price is calculated for 20 years. At the same time, the electricity seller can extend the contract period, or sign a new contract with the electricity buyer. Applies to part, or all, of grid-connected wind power plants with a commercial operation date before November 1, 2021.

2/ Potential characteristics of wind power in Vietnam

Vietnam, with its advantageous geographical features, a coastline stretching over 3,000 km and a subtropical monsoon climate, has been surveyed and assessed as having high wind potential in the region. The construction of wind power plants is a reasonable solution, contributing to significantly increase Vietnam's electricity production in the coming years. According to the revised Power Plan VII, approved by the Prime Minister in 2016, Vietnam will develop 800 MW of wind power by 2020, accounting for about 0.8% of the total electricity demand at that time. The goal is to develop 2,000 MW of wind power by 2025 and 6,000 MW by 2030.

The draft Power Master Plan VIII (under completion) has put the wind power development target to over 11,000 MW by 2025. According to the Global Wind Atlas, it is estimated that more than 39% of the area of ​​Vietnam The South has an average annual wind speed of over 6 m/s at an altitude of 65 m and more than 8% of the land area of ​​Vietnam has an average annual wind speed of over 7 m/s. This corresponds to a wind resource potential of 512 GW and 110 GW. The technical potential of onshore wind power is about 42 GW, suitable for large-scale wind power projects. The offshore wind potential is much larger than the onshore wind potential because the coastline is long and offshore winds are usually more stable, high velocities. Infrastructure for offshore wind and grids is also less constrained by land use issues.

Technical potential of wind power onshore. Technical potential of wind power at sea. Keep wind data according to GIZ. Vietnam's onshore wind power is divided into 6 regions.

According to the summary, the onshore wind power capacity has been approved and is being submitted for additional planning as follows:

Table of wind power planning in regions to 2030:

 

Tên vùng

Đã được bổ sung quy hoạch (MW)

Đã đăng ký đầu tư (MW)

Bắc bộ

    

Bắc Trung bộ

  

372

Trung Trung bộ

560

2.522

Tây Nguyên

286,8

10.174

Nam Trung bộ

2.030

2.461

Nam bộ

2.099

14.775

Toàn quốc

4.975,8

30.304

 

Offshore wind power: According to the report of the Institute of Energy in 2020, the total technical potential of offshore wind power in our country is about 160 GW, of which:

  • Quang Ninh (11 GW);
  • Ha Tinh (4.4 GW);
  • Ninh Thuan (25 GW);
  • Binh Thuan (42 GW);
  • Tra Vinh (20 GW);

The Institute for Sustainable Energy (ISF) estimates that Vietnam's offshore wind potential could be as high as 609 GW, assuming only coastal areas with a maximum depth of 50 m and a maximum distance. from shore is 70 km (based on 2015 meteorological data). Wind power capacity factor in Vietnam is estimated to average around 36% for onshore and 54% offshore.

3/ Planning and deploying wind power in some provinces with great wind power potential

Quang Tri: In 2015, the Ministry of Industry and Trade approved the wind power development planning in Quang Tri province to 2020, with a vision to 2030, with 4 projects with a total capacity of 110 MW. But to exploit the potential and advantages, the province has proposed to the Central Government to supplement the planning of 84 wind power projects, with a total capacity of over 4,030 MW, of which 31 projects have been approved by the Ministry of Industry and Trade with the total construction capacity. capacity over 1,177 MW; 53 projects with a total capacity of over 2,853 MW have been submitted to the Ministry of Industry and Trade for consideration and additional planning.

Gia Lai: With a wind speed of 6 - 8 m/s in many places, Gia Lai has great potential for wind power development, with 104 wind power projects with a capacity of 12,600 MW already submitted to the Prime Minister by the Provincial People's Committee. and the Ministry of Industry and Trade. After considering the connection conditions and capacity release, the Ministry of Industry and Trade considered and submitted to the Prime Minister to include in Power Planning VII (Adjusted) with 16 wind power projects, total capacity is 1,142 MW .

Dak Lak: There is great potential for renewable energy, especially wind power, with a total capacity expected to reach about 10,000 MW. These projects, after being implemented and completed, will actively contribute to ensuring electricity supply for Dak Lak province and the key economic region of the Central Highlands, as well as national energy security.

Ninh Thuan: According to the wind power development planning of Ninh Thuan province for the period 2011 - 2020, with a vision to 2030, the province has 5 planned areas, with a total area of ​​21,432 hectares, with an installed capacity of 1,429 MW. In addition, with a coastline of 105 km and a wind speed of over 8 m/s, Ninh Thuan can also develop coastal wind power projects with a capacity of over 1,000 MW. Offshore wind power is expected to arrive in In 2030, 15 project locations will be developed, of which, in the period of 2021 - 2025, 4 locations will be developed with a scale of 1,220 MW, in the period 2026 - 2030, 11 locations will continue to be developed with an additional capacity scale. 3,160 MW.

Binh Thuan: There are 20 wind power projects in Binh Thuan province, with a total capacity of 812.5 MW, approved by the Prime Minister, supplementing the National Power Development Plan and the Ministry of Industry and Trade approved the Regulation wind power development plan in Binh Thuan province. In which, 14 projects have been granted investment policy decisions by the Provincial People's Committee, with a total capacity of 598 MW. By May 2021, there have been 4 projects put into operation with a total capacity of 100 MW and it is expected that by the end of 2021, 6 more projects with a total capacity of 238 MW will be put into operation. Regarding wind power projects Potential offshore Binh Thuan, investors are proposing to develop 8 large projects, with a total capacity of up to 22,000 MW

Specifically:

  • Thang Long Wind Project - 3,400 MW;
  • La Gan - 3,500 MW; Binh Thuan - 5,000 MW;
  • Ham Thuan Nam - 900 MW; Co Thach Sea - 2,000 MW;
  • Vinh Phong - 1,000 MW;
  • AMI AC in Binh Thuan province - 1,800 MW;
  • Tuy Phong - 4,600 MW

Bac Lieu: Developed the "Bac Lieu wind power development plan for the period up to 2020, with a vision to 2030" and approved by the Ministry of Industry and Trade, which identifies the development potential of wind power projects. the period to 2020, with a view to 2030 of Bac Lieu is expected to be 2,507 MW.Ben Tre: According to the wind power development planning in Ben Tre province for the period to 2020, vision to 2030 approved by the Ministry of Industry and Trade. Approved, the province's wind power development potential is studied in the coastal inland and coastal alluvial areas with an area of ​​about 39,320 ha, with a capacity of 1,520 MW.

Soc Trang: According to the wind power development planning in Soc Trang province to 2020 and approved by the Prime Minister to supplement the planning, there are 20 projects with a total capacity of 1,435 MW, which have been approved by the Provincial People's Committee so far. deciding on investment policies for 16 projects with a total capacity of 1,095.2 MW, the remaining 4 projects, the Department of Planning and Investment is completing documents according to appraisal opinions to apply for investment policies. Currently, there are 9 factories under construction and will soon be put into operation. Tra Vinh: Up to now, Tra Vinh province has issued investment policy decisions for 8 wind power projects, with a total capacity of 570 MW, total investment capital of more than 27,300 billion VND.

According to the progress committed by contractors, by October this year, Tra Vinh will have 5 wind power projects connected to the national grid.

Ca Mau: Ca Mau has a very favorable geographical position with 3 sides facing the sea, a coastline of over 254 km, a wide and fairly flat continental shelf, favorable for wind power development. The total planning potential is 3,600 MW for nearshore wind projects. As of June 2021, there are 11 wind power projects in Ca Mau with a total capacity of 675MW. In addition, there are 200 MW wind power projects under consideration for investment policy, expected to be put into commercial operation around 2021 - 2023.

4/ General comments on the current progress of wind power project

There are 144 wind power projects that have signed power purchase and sale contracts. Of which, 13 projects have been commercially operated with a capacity of nearly 611.33 MW.

According to EVN's report, by July 2021, there are 144 wind power projects that have signed power purchase agreements (PPA contracts) with a total capacity of approximately 8,144.88 MW. Of which, 13 projects have been commercially operated with a capacity of nearly 611.33 MW. It is expected that by November 1, 2021, the effective time of Decision 39 on preferential electricity purchase prices (FIT), there will be 106 more projects operating with a total capacity of nearly 5,621.5 MW. However, only 61 plants have registered for the program of energizing and connecting to the grid, testing in accordance with regulations for 90 days, while 25 projects with a total capacity of over 1,912 MW may not be able to operate commercially before January 1. Thus, after more than 10 years of being prioritized for development with the State's encouragement policy, so far there are only 13 projects in commercial operation with a capacity of nearly 611.33 MW. put into operation, has not yet reached the target of 800 MW by 2020 according to the revised Power Master Plan VII.