Energy for re-generation (2)

BT- The government's electricity purchase price has been forecasted to no longer be attractive, the price of plant’s equipment and construction is increasing again but the attraction of investment in wind and solar power in the province is continuing, when there are currently 74 projects proposing to supplement into Power Development Plan VIII ...


Report 2: “Pieces" of Green Energy

Solar power project in Tuy Phong (documentary photo). Photo: Ngoc Lan

Catch up with the big trend

In the first months of the year 2021, fishermen in the province heard about the policy of support and compensation at sea. It is a plan to support and compensate for people in the water area of surveying and implementation of the Thang Long Offshore Wind power project (off the coast of Ke Ga Cape), which was headed and proposed by the Department of Agriculture and Rural Development and agreed by the Chairman of the provincial People's Committee in Letter No. 478, issued in February 2021. Specifically, compensation for the Fish attracting device which is cut its feet off at VN$ 7.5 million /foot; income support for ship owners is VN$ 3 million/day/ship and also the employees on that ship is VN$ 300,000/day... Enterprize Energy Group (EE) from 3 countries: UK, Japan and Singapore, the investor of Thang Long Wind project bears all costs to pay people under the agreement.

It is worth noting that this plan is only applied in the period of project survey under the Prime Minister's policy in Official Dispatch No. 621/2019. At the stage of implementation and construction of the project, fishermen will be compensated and supported by other plans. This is the first time that fishermen have approached compensation and support policy at sea. Hence earlier, the Group held many meetings and direct dialogues with fishermen to get comments as well as information about the project. Currently, EE Group is conducting a series of survey activities such as wind measurement, aero survey, seabed geological survey to prepare for application for investment policy decision and investment license after PDP VIII is approved. Accordingly, phase 1 of the project with 600 MW will be powered by 2025 and the entire 3,400MW of project by 2030.

Meanwhile, the 3,500 MW offshore wind power of a Danish investment group has also been conducting the signing activities with partners since the beginning of the year, despite the raging epidemic. As in February 2021, the company signed 4 memorandums of understanding on the provision of foundations and port services. In May 2021, two contracts were signed for geological survey and research in the project area off Tuy Phong beach. Then on July 15, the offshore seismic survey contract was signed to ensure the structural design of the project's offshore foundations and underground cables. As the Danish Ambassador to Vietnam’s saying at the signing ceremony, that the La Gan offshore wind power project has shown a commitment, serious attitude and a great willingness to invest both financially and technically to be able to expedite the project as soon as it receives a license from the Government.

The severity and desire of foreign investors comes from the very obvious reason that at present, the development of offshore wind power is a major trend of the world. Moreover, Vietnam is one of 5 countries recognized by the world with big potentials to develop offshore wind power. And Binh Thuan’s offshore sea, where has gathered more strengths for wind power development than other places such as suitable strong wind speeds; high and stable wind hours; flat seabed in many areas is very convenient for the construction of offshore substations, offshore power transmission lines ..., has become a center to attract well-known corporations in the field of wind power investment in the world to come and build projects worth tens of billions of dollars, for which the investor of the two above projects is an example.

Energy Center

With more offshore wind power projects coming up, the scheme of "Binh Thuan Energy Center" which was approved by the Provincial People's Committee, issued in April 2016 suddenly became more diversified, more worthy of the word "national". This is the emphasis of the Politburo in Conclusion 76/KL-TW on November 28, 2013 on the implementation of Resolution of the 11th Party Congress, Resolution of the 12th Party Congress of Binh Thuan province, term 2010-2015 and some development guidelines of Binh Thuan province to 2020. Specifically: "Striving to 2020, Binh Thuan basically becomes an industrial province in the direction of modernity, with a suitable economic structure: Industry - services - agriculture. As an energy center, titanium mineral ore processing center, national tourism and marine sports center".

Firstly mentioned to the energy center, former Secretary of the Provincial Communist Party Huynh Van Tí recalled: "Before that, on the basis of studying scientific grounds combined with the conditions and potentials of the locality; with the view of turning the disadvantage of excess sun and wind of a dry province into an advantage to develop wind power, solar power, along with other types such as hydropower, thermal power, gas electricity ... build Binh Thuan province to become a national energy center. The Standing Committee of the Provincial Communist Party (xii) proposed that idea and was agreed by the Politburo. Conclusion No. 76 was issued to meet binh Thuan's expectations and soon after, the Provincial Party Committee issued Plan No. 106/KH-TU on March 31, 2014 to implement the Conclusion, in which the scheme was soon developed to form a national energy center".

In the scheme of "Binh Thuan Energy Center" approved by the Provincial People's Committee in April 2016 in Decision No. 1061, the goal is to play a leading role in providing stable electricity for the region, contributing to ensuring energy security for the whole country with the development of a variety of energy sources, paying attention to wind and solar power. This scheme, together with the planning for development of wind and solar power in the period up to 2020, Binh Thuan's vision for 2030 was approved by the Ministry of Industry and Trade in 2012 as a pre-preparation to catch up with each wave of investment ...

Rapid formation

The first wave is solar power. When the Prime Minister's Decision No. 11/2017/QD-TTg is issued with the content of solar power projects operating and connection to the grid from June 1, 2017 to June 30, 2019, they will be purchased by EVN at a preferential price of 9.35 cents / kWh, lasting for 20 years, investors began to land to Binh Thuan to set up projects on most of the land areas of province where previously was desolated, low productivity. When it reached the milestone of June 30, 2019, the whole province had 20 projects with more than 763 MW to be on national grid. Besides, there are dozens of other projects that are stopping at different stages. Next is the policy of encouraging wind power investment under Decision 39/2018 / QD-TTg, applied to power plants to the national grid until October 31, 2021 also contributed to bring the number of wind power projects in Binh Thuan to more than 20 projects and if there are no obstacles, after this October there will be about 200MW to be on the grid. Together with Vinh Tan Thermal Power Center, the national grid-reconciled wind and solar power plants have contributed to make Binh Thuan a strongly developed province in the energy industry, gradually becoming a major energy center of the country with a capacity of about 7,000MW. At the same time, they themselves are like green pieces in the energy picture in the province, when coal and hydropower will gradually shrink, because of material obstacles.

However, the cumulative appearance of the above projects has led to overload of transmission systems, most noting that in Tuy Phong, it is necessary to cut down on large amounts of clean electricity that when analyzing the reasons, EVN believes that the investment in the line has not kept up. In addition, in the context that the the upcoming electricity purchase price of Government has been forecasted to no longer be attractive, the price of plant’s equipment and construction is increasing again, but the attraction of investment in wind and solar power in the province is continuing. In February 2021, the Provincial People's Committee proposed in writing the Prime Minister and the Ministry of Industry and Trade to add 74 projects into PDP VIII. Why?

Bich Nghi