VietNamNet Bridge – Experts all have agreed that it’s necessary to offer big investment incentives to encourage investors to pour money into wind power projects, but they still have not agreed on how big the preferences should be.
Pham Trong Thuc, Director of the Recycled Energy Department under the Ministry of Industry and Trade, said the government orders the wholesale buyer, EVN, to buy all the electricity output churned out by wind power projects. The selling price is UScent7.8 per kwh, not including VAT. The price in dong would be adjusted in accordance with the dong/dollar exchange rate fluctuation.
Thuc stressed that the price fixed by the government and applied to wind power projects is much higher than the price of the electricity churned out with other kinds of fuels.
He went on to say that the government has also decided that the products of clean energy projects, including wind power, can enjoy the subsidy from the environment protection fund, and enjoy the investment credit preferences from the state sources.
The wind power project developers don’t have to pay the import tax on the equipment imported to serve the projects’ implementation. They can enjoy the 10 percent corporate income tax rate for 15 years during the projects’ lives, while the tax incentives can be extended by up to 30 years.
Also according to Thuc, MOIT is going to issue two important documents relating to the wind power development, including the wind power development program and the sample contract on wind power sale and purchase. The average duration of the projects is 25 years.
“With the two new legal documents, the investors would feel secure to make investment in wind power projects in Vietnam,” Thuc said.
However, he also thinks that in the long run, the wind power purchase price needs to be raised by the government, while the electricity price needs to be set up in accordance with the market supply and demand to ensure the harmonized benefits for the State, investors and consumers.
The policy maker also mentioned the removal of the subsidy in the gas and coal prices being applied to coal run and gas run thermopower plants, and the necessity to simplify the procedures to create most favorable conditions for investors.
The government has been urged to instruct relevant ministries and branches to continue the surveys on the wind power potentials and show exact figures about the potentials. The relevant ministries would be requested to seek reasonable resources to call for the investment capital. Since wind power projects require huge capital, it would be unfeasible to rely on the state’s investments or domestic capital sources.
One more wind power project on the track
Cong Ly Company, the investor of the Bac Lieu wind power project, has reportedly asked for the HCM City People’s Committee’s permission to develop a 200 MW wind power plant in Can Thanh town of Can Gio district in the city. The project is expected to have the investment capital of VND10 trillion.
A senior executive of Cong Ly said the wind speed in Can Gio is as high as 7 meters per second, which is suitable for developing wind power.
The company plans to install 125 turbines on the area with the length of 20 kilometers along the Can Thanh beach. It would take 3-4 years to build the plant
SGTT