HBRE Wind Power Solution is constructing a 120 MW wind farm in three phases at the cost of $281 million in the Central Highlands province of Dak Lak, Vietnam.
The first phase will use 14 two MW turbines and will start generating electricity next year.
The plant is expected to produce 400 million kWh a year, enough for 200,000 households. The project is expected to be complete through 2020.
GE will provide the project’s 60 turbines on March 13.
Vietnam aims to produce 1,000 MW of wind energy by 2020, equivalent to 1.5 percent of its total power production.
In order to achieve this target, the Government has provided various incentives to investors. Renewable energy power plants will receive incentives for investment, electricity tariffs and taxes. In addition, there are tax exemption and land fee exemption over a certain period of time for investors.
The nation runs three wind farms, all in the southern part of the country, with a combined capacity of 52 MW and 45 registered wind power projects with combined capacity of 4,822 MW.
Earlier, Vestas Wind Systems signed a deal with Ho Chi Minh City-based Phu Cuong to develop a 170 MW wind farm in the Mekong Delta province of Soc Trang.
The $436-million project is expected to begin construction in 2016 and start generating power the following year.
Vietnam’s renewable energy policies are driven by the needs to supply sufficient energy for economic development and ensure environmental protection. Since energy demand is expected to increase four times from 2005-2030 and electricity demand increase nine times from 2005-2025, developing renewable capacity will help Vietnam reduce its reliance on foreign sources of energy and ensuring ample energy security in the future.
The objective of the Renewable Energy Development Project for Vietnam is to increase the supply of electricity to the national grid from renewable energy sources on a commercially, environmentally, and socially sustainable basis.