New strategic partnership formed to tap renewable energy potential in Vietnam

Under the agreement, HTL will become the EPC contractor, performing the whole process from design, material and equipment supply, to construction, testing and hand-over to the project developer- HBRE.

Initially, the two companies will cooperate in implementing phase I of Tay Nguyen (Central Highlands) wind farm project in Vietnam’s Central Highlands’ DakLak province.

HTL is also an equity investor in the project through 25 per cent capital value contribution, tantamount to VND150 billion ($7 million).

The Tay Nguyen wind farm project is positioned in DakLak province’s EaH’Leo district in the Central Highlands, one of the regions having the highest potential for wind energy in Vietnam as assessed by world’s leading wind turbine manufacturers such as VESTAS, and GE.

Licensed by DakLak People’s Committee, HBRE Wind Power Solution envisages implementing the project in three phases from present to 2020, with expected total capacity reaching 120MW.

In particular, phase I with capacity of 28MW and total investment of nearly VND1,400 billion ($66.6 million), is expected to generate electricity in June 2016, producing more than 100,000,000kWh per year.

After finishing all three phases, it is expected to become the largest-capacity wind farm in Vietnam producing 400,000,000kWh per year, equivalent to demand of 200,000 households.

Tran Viet Hung, deputy head of the Central Highlands Steering Committee said, “HBRE is the first company to run wind power project in Tay Nguyen area. Hopefully, the cooperation between HBRE and HTL in this project will bring prosperous outcome that contributes to Tay Nguyen’s sustainable development and general development of renewable energy in Vietnam.”

Hung said that Tay Nguyen was the region having a high potential for wind energy. According to a recent research by the Ministry of Industry & Trade, wind power capacity in Tay Nguyen accounts for 25 per cent of the country’s total capacity, which concentrates in DakLak and Gia Lai province, reaching capacity of 1,350MW.

Ho Ta Tin, chairman of HBRE affirmed, "The cooperation with HTL in Tay Nguyen wind farm project is a favorable starting point, initially strengthening bilateral relationship between two parties based on long-term and sustainable development. We are committed to cooperating effectively to further develop clean energy which is environmentally friendly and economically efficient, not only in Tay Nguyen but also in other areas in Vietnam."

“We are delighted to work with HBRE and believe that the experiences and strengths of both parties will bring success to the upcoming collaborative projects. As a contractor of Bac Lieu wind power project, we are strengthening our position and capabilities in the field of construction and installation of wind power equipment in local market,” said Ho Xuan Hung, director of HTL.

“This cooperation is also a great motivation for HTL to contribute more to the development of potential wind power in Vietnam,” Hung emphasised.

On September 23, HBRE and General Electric (GE) signed a memorandum of understanding for cooperation in developing the Tay Nguyen wind farm.

Last October, HBRE chose GE as the provider of 14 turbines in phase I of the project.

As an US leading corporation, GE has been operating in 170 countries over the world. With an installed capacity of more than 2,000 megawatts, GE equipment today supplies approximately 10 per cent of the country’s power.