An Giang offers incentives to investors in renewable energy plants

The Mekong Delta province of An Giang will offer preferential policies to investors in renewable energy plants as part of its strategy on sustainable development.
An Giang offers incentives to investors in renewable energy plants ảnh 1Illustrative photo (Source: VNA)
An Giang (VNS/VNA) - The Mekong Delta province ofAn Giang will offer preferential policies to investors in renewable energyplants as part of its strategy on sustainable development.

Investors whose projects are in production and trade, forinstance, will be exempt from land lease fees for seven years and will receiveother incentives, according to the province’s Department of Industry and Trade.

Investors will also be exempt from fees for infrastructureprojects in industrial parks for 11 years, while loans equal to nearly 70 percentof total investment capital will be offered.

Investors in economically difficult regions, such asdistricts Tri Ton, Tinh Bien and An Phu, will have a corporate tax rate of 10percent.

Nguyen Minh Triet, deputy head of the department’s EnergyManagement Division, said at a conference on sustainable energy developmentheld recently that four solar energy projects with 320 MWp capacity were beingbuilt in Tinh Bien and Chau Thanh districts.

Another five solar energy projects with capacity of 463 MWpin districts Tri Ton and Tinh Bien have been submitted for approval to theMinistry of Industry and Trade.

In March, a solar rooftop system with capacity of 3kWp willbe installed at a facility of the industry and trade department, under anagreement between the province and Germany’s Mecklenburg-Vorpommern state.

This system will be the first in the province and serve as amodel for solar energy generation.

Doan Minh Triet, the department’s deputy director, said theenergy sector would focus on renewable energy to meet the increasing demand forpower and to reduce greenhouse gas emissions.

The province also plans to use waste from agriculturalproduction to generate energy under a biomass energy project awaiting approvalfrom the Government.

Under the project, three plants will be built to generateenergy from rice husks, with total capacity of 40 MW. The plants will be built in areas where riceprocessing factories are located.  

If the project is approved, the department will ask theGovernment to provide preferential policies on land, corporate tax and importtax for procurement of fixed assets.

Many investors want to invest in rice husk energy plants, butare worried about the price offered by the Government. They said the pricesshould be equal to or higher than prices offered for solar energy, according tothe Cong Thuong (Industry and Trade) newspaper.

The provincial People’s Committee has also approved an actionprogramme with investment of 500 billion VND (21.5 million USD) on effectivemanagement and use of biomass for energy generation in the context of climatechange for the 2018-30 period.

Under the programme, areas of collected straw will include atleast 40 per cent of the total straw discharged from rice production.  Ofthese areas, 15 percent will be used for energy production.

In addition, at least 50 percent of the total rice husksdischarged from rice production will be used for renewable energy plants.

An Giang province has huge potential for biomass energy as ithas an annual output of paddy of more than 4 million tonnes, ranking second inthe Mekong Delta region.

It also has 8 million tonnes of straw and 800,000 tonnes ofrice husks, and a large amount of other kinds of biomass such as corn husks,sugarcane dregs, and others.

The total amount of biomass in the province is 10 milliontonnes, which could generate 17 million MWh a year.-VNS/VNA
VNA

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