Thuan Binh Wind Power Joint Stock Company (EVN
TBW), 25% owned by Electricity of Vietnam (EVN), plans to invest up to $2 billion in wind and solar power by 2030, said its Chairman Bui Van Thinh.
The firm plans to develop 510 megawatts (MW) of wind power and 570 MW of solar energy in four central coastal and Central Highlands provinces, Thinh told local press on February 16.
Besides additional capital from shareholders, the firm will ask for loans from Germany’s KfW Development Bank, the Asian Development Bank and the World Bank, Thinh added.
Bui Van Thinh, chairman of Thuan Binh Wind Power Joint Stock Company. Photo: Minh Tuan/BizLIVE
Established in 2009, the energy developer now has a registered capital of 240 billion dong ($10.6 million) and plans to bolster its capital base to 450 billion dong ($19.8 million) to implement its projects.
EVNTBW in November last year started operating a 24-MW wind power farm in Tuy Phong district, Binh Thuan
province. The project had an investment of 1.1 trillion dong (nearly $48 million dong), of which 85% was provided by KfW. Its 12 2-MW turbines were provided by Denmark's Vestas
According to the International Energy Agency and the World Bank, Vietnam’s wind power potential is estimated at 513,000 MW. However, a foreign agency estimated the feasible potential at 10,000 MW.
Under a government-approved plan in 2016, Vietnam aims to bring installed wind power capacity from 160 MW currently to 800 MW by 2020, 2,000 MW by 2025 and 6,000 MW by 2030.
Wind power is expected to account for 0.8% of the country’s total energy output in 2020, 1% in 2025 and 2.1% in 2030, according to government projections.
However, this target seems unreachable as the feed-in tariff (FIT) for wind power is just 7.8 US cents per kWh now, much lower than that in regional country.
To ensure the profitability of a wind power project, the FIT should be 9.5 US cents/kWh, Thinh said.
The government is expected to announce a new FIT roadmap for the wind power industry in the first quarter of this year.