FICO Corporation’s decision to invest its two wind farms in Binh Dinh province will help it avoid the grid overload issues experienced in Tra Vinh, Ninh Thuan, and Binh Thuan.
Binh Dinh Economic Zones Management Authority has approved in principle the investment planning of Nhon Hoi 1 and 2 wind farms of FICO Corporation. If the administration procedures are completed on schedule, the two wind farms are expected to start operation in September 2021.
These two wind farms are located in the area reserved for renewable energy projects of Nhon Hoi Economic Zone in Binh Dinh province.
Nhon Hoi 1 will have a capacity of 30MW and cover an area of 175 hectares with the total investment capital of VND1.32 trillion ($57.3 million). Located on an area of 201ha, the second one will have the same capacity, with the price tag of VND1.24 trillion ($53.9 million).
The project duration is 50 years, counted from the day the investors are granted the investment planning license.
In case the investor does not implement the project within 12 months or fails to meet the construction schedule approved by the authorities without acceptable reasons, the investment planning license will be withdrawn.
In 2011 the government announced a feed-in tariff of of VND1,770 (7.7 US cents) per kWh for wind energy projects, with a power purchase agreement (PPA) duration of 20 years, an attractive rate for investors.
However, experts warn that the rush to invest in wind energy to take advantage of the government’s pricing incentives could lead to overloading of the national grid in a repeat of the solar scenario.
According to a report by Electricity of Vietnam (EVN), besides the nine plants that have begun commercial operations, it has also signed PPAs with 31 other plants with a total capacity of 1,645MW that are under construction.
Besides, 59 other plants with a total capacity of around 2,700MW have been added to the zoning plans for wind energy for the period leading up to 2025. More than 100 other projects have submitted applications for approval.
The proposed plants are mainly located in Bac Lieu, Ca Mau, Tra Vinh, Ninh Thuan, Binh Thuan, Quang Tri, and Phu Yen provinces.
The National Load Dispatch Centre warned that with many wind power plants going on stream this year, the national grid and transmission system could be overloaded in Tra Vinh, Ninh Thuan, and Binh Thuan.