PM approves higher power tariff for Cong Ly

The figure is equivalent to the purchase price at its Bac Lieu wind power, which is much higher than the 7.8 UScents fixed by the government under Decision No.37/2011/QD-TTg dated June 29, 2011 on the mechanism supporting the development of wind power projects in Vietnam.

Previously, Cong Ly’s general director To Hoai Dan told VIR the reason for its call for a higher feed-in-tariff than currently regulated by the government is that the project is located on the coastline, thus the company incurs extra charges on constructing the foundations of the wind turbines. The company also used the most advanced turbines, which pushed up the investment cost.

“The purchase price is lower than we hoped, but it is acceptable,” Dan added.

On January 16, the construction of the first phase of the Khai Long-Ca Mau wind power farm was kicked off in the southernmost province of Ca Mau. The 100 megawatt wind farm, to be built on a total of 2,165 hectares of land and sea surface area, is scheduled for completion in 2018. It will be connected to the national grid and will also sell power to EVN. The plant’s total investment value is about VND6.5 trillion ($291.5 million).

On January 17, Cong Ly started the full operation of the 99MW Bac Lieu wind farm in the southern province of Bac Lieu. The farm, which has been constructed on an area of 1,300ha since 2010, has the total investment capital of VND5.2 trillion ($233 million).

Since the first wind turbines were connected to the national grid in May 2013, the plant has produced 130 million KWh, earning a revenue of VND150 billion ($6.7 million) and paying VND15 billion ($672,000) in taxes.

A representative of the company said that they planned to implement the next phase soon, building 71 additional wind turbines of 2MW each for VND8.850 trillion ($397 million). The construction is scheduled to be carried out over 36 months and operation is going to start in 2018.

According to the data released by the Ministry of Industry and Trade, a total of 50 wind power projects have been registered but only five saw implementation. Three of these, namely 30MW Tuy Phong in Binh Thuan, a 6MW wind power project on Phu Quy Island in Binh Thuan, and the 99MW Bac Lieu plant, are generating commercially.

Of these three, only Cong Ly sells electricity at 9.8 US cent/kWh, because its wind farms are on the sea. The other two, as per Decision 37 sells for 7.8 US cent/kWh, of which 6.8 US cent is paid by EVN and 1 UScent is paid by the Vietnam Environment Protection Fund.

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