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International Cooperation

Wind taken out of project’s sails

03/12/2011

Belgium-backed Phuoc Nam-Enfinity renewable energy project in southern Ninh Thuan province will delay construction to late 2012.

Belgium-backed Phuoc Nam-Enfinity renewable energy project in southern Ninh Thuan province will delay construction to late 2012.

Tran Khang Thuy, director at Ho Chi Minh City Economics University’s Centre for Economic Studies and Applications (CESAIS) - the partner of Enfinity Group’s Enfinity Asia Pacific Limited for Vietnam-based wind and solar power production projects - said the project was in the process of negotiating the land acquisition cost for 553 hectares it was given with Ninh Thuan Department of Natural Resources and Environment.

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“Land acquisition costs will be set at pragmatic levels to ensure project’s facilitation since project’s start-up depends chiefly on this phase progress,” said Thuy, adding that actual land given to investor, for some reasons, was just one third 553ha out of 1,767ha as the provincial management was ratified in Document 554/UBND-TH dated February 5, 2010.

The change forced the investor to re-process project records as well as recalculate the capacity and positions to install wind turbines. Besides, since the investor was just allowed to deploy a wind power farm first instead of simultaneously carrying out solar and wind power farms as proposed, so that the investor was reportedly considering hiking wind turbine capacity from 1.5 megawatts to 2.3MW or more each to ensure economic efficiency.

“We are drawing project records and negotiating with foreign consultants on project appraisal before joining hands with Vietnamese consultants on investment project establishment,” said Thuy, adding that the whole process can be finalised by February 2012.

Parallel to quickening the wind power project pace, the developer reportedly completed the solar power plant’s investment report with a proposed rate of 15UScents/kWh instead of 19.3UScents/kWh as set initially. The report will be submitted to ask for investment certificate in early 2012.

Enfinity Ninh Thuan Company Limited is in the process of negotiating with world’s wind power equipment suppliers for project equipment and technology solution procurement, said Thuy of CESAIS.

In early November 2011, Vietnam Fuhrlaender Wind Power Joint Stock Company rubber stamped a contract on complete installation of a wind measuring facility for Ninh Thuan Enfinity Company at the project site.

“Wind data procurement is crucial at this point at time for drafting project investment records as well as implementation plan since former data was collected in 2006 then needed to be updated especially when we decided on hiking turbine capacity,” said Thuy.

Initially, Enfinity proposed to develop three renewable power projects in Ninh Thuan including a 282MW solar power farm covering 560ha and two wind farms with a combined capacity of 240MW. However, the government just green-lighted its one $251 million, 124.5 MW wind power farm proposal while other projects are pending governmental approval.

BY LM

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