Illustrative image (Photo: VNA) Hanoi (VNS/VNA) - The Prime Minister has requested the Ministry ofPlanning and Investment (MPI) propose suitable management solutions for solarpower projects to ensure national security.
The Government Office has released this PM direction on this issue for the MPI,the Ministry of Industry and Trade and relevant agencies after local media hasreported that a Thai investor has acquired solar power projects in Binh Phuoc.
According to reports, Thailand's Super Energy Corporation Company Limited(Super Energy) has announced it has acquired the Loc Ninh 1, 2, 3, 4 solarpower projects in Binh Phuoc by buying those plants’ shares from intermediarycompanies with a total investment of 456.7 million USD.
Of which, the investment is 99.7 million USD to the Loc Ninh 1 solar powerproject, 140 million USD to the Loc Ninh 2, 105 million USD to Loc Ninh 3 and 112million USD to Loc Ninh 4.
Before investing in the four solar power projects, Super Energy owned six othersolar power projects in Vietnam. As of March 2020, those six projects alone hada total capacity of up to 286.72 MW, half the total capacity of Super Energy’s100 solar power projects in Thailand.
Super Energy’s power projects in Vietnam have had a return on investment (EIRR)of 12-13 per cent while the Loc Ninh 1,2,3,4 solar power projects have much higherEIRR between from 16.59 percent to 17.4 percent.
The Thai investor has also purchased shares in a series of other solar projectsin other provinces, including Ninh Thuan and An Giang and shares in four windpower projects in Bac Lieu, Soc Trang, Phu Yen and Gia Lai provinces.
These projects are expected to be in full or partial operation from the fourthquarter of 2021.
With the forms of joint venture or share transfer with Vietnamese enterprises,many foreign energy and investment groups have owned dozens of solar and windpower projects enjoying preferential rates of 9.35 US cents per kWh for 20years in Vietnam, the Tien Phong (Vanguard) newspaper reported.
Of which, Thanh Thanh Cong Group and Gulf Energy Group (Thailand) have set up ajoint venture from mid-2019 to put investment to two solar power plants in Tay Ninhprovince, TTC 1 and TTC 2.
The Gulf has increased its holding to 90 percent of shares at the two plantsfrom 49 percent in 2019. It also holds 95 percent of shares at wind powerprojects in Ben Tre province.
Besides Thailand, many investors from Singapore, China and Philippines haveowned many solar and wind power projects in Vietnam.
Power planning
At present, more than 30 provinces and cities nationwide have solar powerprojects, raising concerns about broken electric planning and environmentalproblems.
According to experts, Vietnam has had a strong development of solar projectsafter the State announced the attractive power purchase price at 9.35 US centsper kWh equivalent to 2,086 VND per kWh for solar power projects startingoperation before June 31, 2019. This price would be for those projects within20 years.
As a result, more than 300 solar power projects have been registered after thisdecision, breaking the Electricity Development Plan VII.
The Ministry of Industry and Trade (MoIT) noted the hot development of solarpower projects has created a lack of synchronisation with development oftransmission infrastructure at present.
Vietnam is expected to have a total solar power output of at least 7 GW thisyear, too higher than the 0.8 GW national target for this year, according tothe studies conducted by the GIZ German development cooperation agency’sRenewable Energy and Energy Conservation Project and the MoIT’s Department ofElectricity and Renewable Energy.
Of which, Binh Thuan has nearly 100 solar power projects with a capacity of4,000 MW, exceeding the planning at the Electricity Development Plan VII. Thisnumber of solar power projects is 10 times higher than wind power projects.This has led to a mismatch and deployment, which has led to a serious overloadfor the electricity network system of the region.
Ninh Thuan, an attractive investment destination for power companies, has 30solar power projects with a total capacity of up to 1,817 MW and a totalinvestment capital of 50 trillion VND approved by the Prime Minister and theMoIT.
This province estimates to have 26 more solar power projects with a totalcapacity of 3,600 MW.
With massive solar power projects landing to many localities such as Ninh Thuan,Binh Thuan, Tay Ninh, Gia Lai, Hau Giang and Quang Ngai, the MoIT reported, bythe end of 2019, a total capacity of about 15,000 MW from solar power projectshave been approved by the Prime Minister and the MoIT to put into theElectricity Development Plan VII.
That has created difficulties in developing the electrical grid in the regionsnationwide and building electric transmission infrastructure for solar powerprojects connecting the national electrical grid, according to MoIT./.
The Government Office has released this PM direction on this issue for the MPI,the Ministry of Industry and Trade and relevant agencies after local media hasreported that a Thai investor has acquired solar power projects in Binh Phuoc.
According to reports, Thailand's Super Energy Corporation Company Limited(Super Energy) has announced it has acquired the Loc Ninh 1, 2, 3, 4 solarpower projects in Binh Phuoc by buying those plants’ shares from intermediarycompanies with a total investment of 456.7 million USD.
Of which, the investment is 99.7 million USD to the Loc Ninh 1 solar powerproject, 140 million USD to the Loc Ninh 2, 105 million USD to Loc Ninh 3 and 112million USD to Loc Ninh 4.
Before investing in the four solar power projects, Super Energy owned six othersolar power projects in Vietnam. As of March 2020, those six projects alone hada total capacity of up to 286.72 MW, half the total capacity of Super Energy’s100 solar power projects in Thailand.
Super Energy’s power projects in Vietnam have had a return on investment (EIRR)of 12-13 per cent while the Loc Ninh 1,2,3,4 solar power projects have much higherEIRR between from 16.59 percent to 17.4 percent.
The Thai investor has also purchased shares in a series of other solar projectsin other provinces, including Ninh Thuan and An Giang and shares in four windpower projects in Bac Lieu, Soc Trang, Phu Yen and Gia Lai provinces.
These projects are expected to be in full or partial operation from the fourthquarter of 2021.
With the forms of joint venture or share transfer with Vietnamese enterprises,many foreign energy and investment groups have owned dozens of solar and windpower projects enjoying preferential rates of 9.35 US cents per kWh for 20years in Vietnam, the Tien Phong (Vanguard) newspaper reported.
Of which, Thanh Thanh Cong Group and Gulf Energy Group (Thailand) have set up ajoint venture from mid-2019 to put investment to two solar power plants in Tay Ninhprovince, TTC 1 and TTC 2.
The Gulf has increased its holding to 90 percent of shares at the two plantsfrom 49 percent in 2019. It also holds 95 percent of shares at wind powerprojects in Ben Tre province.
Besides Thailand, many investors from Singapore, China and Philippines haveowned many solar and wind power projects in Vietnam.
Power planning
At present, more than 30 provinces and cities nationwide have solar powerprojects, raising concerns about broken electric planning and environmentalproblems.
According to experts, Vietnam has had a strong development of solar projectsafter the State announced the attractive power purchase price at 9.35 US centsper kWh equivalent to 2,086 VND per kWh for solar power projects startingoperation before June 31, 2019. This price would be for those projects within20 years.
As a result, more than 300 solar power projects have been registered after thisdecision, breaking the Electricity Development Plan VII.
The Ministry of Industry and Trade (MoIT) noted the hot development of solarpower projects has created a lack of synchronisation with development oftransmission infrastructure at present.
Vietnam is expected to have a total solar power output of at least 7 GW thisyear, too higher than the 0.8 GW national target for this year, according tothe studies conducted by the GIZ German development cooperation agency’sRenewable Energy and Energy Conservation Project and the MoIT’s Department ofElectricity and Renewable Energy.
Of which, Binh Thuan has nearly 100 solar power projects with a capacity of4,000 MW, exceeding the planning at the Electricity Development Plan VII. Thisnumber of solar power projects is 10 times higher than wind power projects.This has led to a mismatch and deployment, which has led to a serious overloadfor the electricity network system of the region.
Ninh Thuan, an attractive investment destination for power companies, has 30solar power projects with a total capacity of up to 1,817 MW and a totalinvestment capital of 50 trillion VND approved by the Prime Minister and theMoIT.
This province estimates to have 26 more solar power projects with a totalcapacity of 3,600 MW.
With massive solar power projects landing to many localities such as Ninh Thuan,Binh Thuan, Tay Ninh, Gia Lai, Hau Giang and Quang Ngai, the MoIT reported, bythe end of 2019, a total capacity of about 15,000 MW from solar power projectshave been approved by the Prime Minister and the MoIT to put into theElectricity Development Plan VII.
That has created difficulties in developing the electrical grid in the regionsnationwide and building electric transmission infrastructure for solar powerprojects connecting the national electrical grid, according to MoIT./.
VNA
