Phu Lac Wind Farm in Tuy Phong city, Binh Thuan province. (Photo: pcbacninh.npc.com.vn)Hanoi (VNA) - The Ministry of Industry and Trade (MoIT) has appealed tothe Government for a wind power price hike, arguing that this would help boostproduction at the country’s wind farms.
TheMoIT’s newly-proposed price for each kilowatt of wind power is 8.77 US cents onland, and 9.97 cent at sea. The current production cost for each kilowatt ofwind power is 7.28 cents, with the estimation for 2020 at 9.94 cents perkilowatt.
Thenew rates will be applied until the end of 2020, and are considered relativelycheaper than the region’s average.
TheMoIT said the proposed new rates are considered an insignificant step and fallunder the Electricity of Vietnam (EVN)’s plan to increase production cost.
Accordingto the MoIT, these suggested rates have been calculated based on scenarios anddatabases in accordance with global technological trends and prices. Not onlywould they help encourage the use of more state of the art wind turbines, theywould also help the industry adopt power lines of longer diameters, in linewith global standards, and improve productivity.
TheMoIT took into account a report from 23 wind farm projects, considering costand efficiency, as well as the operational actuality at two projects already inaction using modern technology in Vietnam, Phu Lac 1 with 24 megawatts producedannually and Bac Lieu with 99.2.
Thebuying prices for these two wind farms are currently 7.8 cents per kilowatt and9.8 cents per kilowatt, respectively.
TheMoIT plans to invest up to 1,600 USD per kilowatt of wind power inland, at a 29percent rate of capacity factor. The estimated annual actual cash operation,maintenance and administrative costs (O&M) are around 20,000 USD permegawatt.
Anyother wind power project at sea should receive around 2,100 USD per kilowatt peryear, at 32 percent capacity factor and an estimated annual O&M cost of 25,000USD per megawatt.
Accordingto the MoIT, this is on the low end in terms of expected costs for commerciallyencouraging the development of wind power projects, especially with the use ofdomestically generated parts and services.
Thenational goal for the development of wind power within the scope of theNational Power Development Master Plan is that power plants wortharound 800 megawatts of wind power will be installed by 2020, which will thenbe increased to 6,000 megawatts by 2030.
TheMoIT hopes to increase the ratio of wind power in the national power grid to0.7 percent by 2020, and 2.4 percent by 2030, 80 percent of which will comefrom inland wind turbines and 20 percent from sea.
As ofthe second quarter of 2017, Vietnam’s potential wind energy amounts to 513,360megawatts, six times the amount generated by thermal or hydraulic power plantsin 2020.-VNA
TheMoIT’s newly-proposed price for each kilowatt of wind power is 8.77 US cents onland, and 9.97 cent at sea. The current production cost for each kilowatt ofwind power is 7.28 cents, with the estimation for 2020 at 9.94 cents perkilowatt.
Thenew rates will be applied until the end of 2020, and are considered relativelycheaper than the region’s average.
TheMoIT said the proposed new rates are considered an insignificant step and fallunder the Electricity of Vietnam (EVN)’s plan to increase production cost.
Accordingto the MoIT, these suggested rates have been calculated based on scenarios anddatabases in accordance with global technological trends and prices. Not onlywould they help encourage the use of more state of the art wind turbines, theywould also help the industry adopt power lines of longer diameters, in linewith global standards, and improve productivity.
TheMoIT took into account a report from 23 wind farm projects, considering costand efficiency, as well as the operational actuality at two projects already inaction using modern technology in Vietnam, Phu Lac 1 with 24 megawatts producedannually and Bac Lieu with 99.2.
Thebuying prices for these two wind farms are currently 7.8 cents per kilowatt and9.8 cents per kilowatt, respectively.
TheMoIT plans to invest up to 1,600 USD per kilowatt of wind power inland, at a 29percent rate of capacity factor. The estimated annual actual cash operation,maintenance and administrative costs (O&M) are around 20,000 USD permegawatt.
Anyother wind power project at sea should receive around 2,100 USD per kilowatt peryear, at 32 percent capacity factor and an estimated annual O&M cost of 25,000USD per megawatt.
Accordingto the MoIT, this is on the low end in terms of expected costs for commerciallyencouraging the development of wind power projects, especially with the use ofdomestically generated parts and services.
Thenational goal for the development of wind power within the scope of theNational Power Development Master Plan is that power plants wortharound 800 megawatts of wind power will be installed by 2020, which will thenbe increased to 6,000 megawatts by 2030.
TheMoIT hopes to increase the ratio of wind power in the national power grid to0.7 percent by 2020, and 2.4 percent by 2030, 80 percent of which will comefrom inland wind turbines and 20 percent from sea.
As ofthe second quarter of 2017, Vietnam’s potential wind energy amounts to 513,360megawatts, six times the amount generated by thermal or hydraulic power plantsin 2020.-VNA
VNA
