TSV Corporation and The Blue Circle recently held the inauguration of the first phase and the construction of the second phase of the Dam Nai wind power plant project in Ninh Thuan. This is the first wind power project to go into commercial operation in Ninh Thuan Province, creating the premise,an important foundation for Ninh Thuan to become the centre of renewable energy of the country. On this occasion, we had a talk with Mr Do Van Dien, Chairman of TSV Corporation and General Director of Dam Nai Wind Power Joint Stock Company, Ninh Thuan. Quoc Hung reports.
Could you please tell us about phase 1 of the Dam Nai wind power plant project that you have just completed?
In response to the call of leaders of Ho Chi Minh City People's Committee, leaders of People's Committee of Ninh Thuan Province, after a short time of survey and completion of legal procedures of the project, project construction, today we are very excited and proud to inaugurate phase 1 of the Dam Nai wind power plant project. This is a key project, contributing to complete the political, economic and social tasks under resolution approved at the General Meeting of Ninh Thuan Party Committee.
Phase 1 of our project has put into operation three turbines with a capacity of 2,625 MW/turbine and a total investment capital is US$15 million.
Within one year after receiving the investment certificate, TSV has completed the first phase. What has helped TSV to achieve such a fast pace, sir?
As you know, the time to complete the legal procedures for the wind power plant project is about 3 years, but with the Dam Nai power plant project, we have completed application for approval of the project within 11 months, construction time is 3 months, and we have put the project into commercial operation in October 2017. Although the time to complete the project is very short, our joint venture is The Blue Circle and TSV has mobilized the resources, completed all the legal procedures to implement the project quickly, determined put into the first commercial operation in Ninh Thuan.
This is the initial success, showing the ability and determination of investors as well as the support and drastic guidance of leaders of the provincial Party Committee, provincial People's Committee and provincial departments; the effective support of people in the project area in the compensation and clearance
Up to now, the Dam Nai power plant project is the first wind power plant project and also the fastest implementation in Ninh Thuan. GIZ and its foreign partners, working with us, commented that no such project in the world has made such rapid progress. International financial organizations highly appreciate our joint venture and consider this a model for international cooperation to invest in the development of renewable energy projects in Vietnam.
Could you tell us the scale and progress of the second phase?
After putting into operation, the output of commercial electricity in the first few months shows that although the efficiency is not high, the indicators are included in our initial calculations. I have decided to invest in phase 2 construction with 12 turbines, the total capacity of phase 2 is 30MW and total investment is about US$60 million. We continue to use the turbine type of 2,625 MW and are expected to be put into commercial operation in November 2018, providing 110 million kWh annually for the national power grid.
After the second phase, we will build an expanded area with a total capacity of 105 MW, with a total investment of USD 180,000,000, providing 330 million kWh annually to the national power grid.
Ninh Thuan authorities and people are very optimistic about wind power projects. Could you tell us the socio-economic value that the province will benefit from the Dam Nai wind power plant project in particular and other projects in general once completed?
Particularly with the Dam Nai wind power plant project, when completing 105kw, Ninh Thuan province's VAT is only VND8- 10 billion per month and about VND100 billion per year. If there are 10 such projects in Ninh Thuan, VAT is collected at VND1,000 billion per year, which is a big amount. In addition, the province will collect other taxes.
I know that in the province there are many wind and solar power projects have been granted investment certificate, if all the projects are implemented, will contribute a great deal of revenue, beautiful landscape to promote the tourist market, real estate ..., make jobs for the local people.
Any project, whether wind power, during the implementation process has certain impacts on the ecological environment as well as the living environment of people in the area. How has TSV paid attention to this issue?
I want to talk more about the values that people can benefit from the project. As you know, the former Dam Nai area without a project, transport is limited. Inner field roads are very small, so people travel and transport agricultural products mainly by motorcycles and rough plows. Now, when we embark on the project has made an 8m wide road to transport super heavy vehicles can come to the project. This road after completion of the project we will hand over to the province management to help people travel and transport of agricultural products very convenient.
At present, the households do not have a rice drying yard, the province has not found a suitable location to plan the rice drying area for the people in the area. Our project has about 40 yards to crane and gathering equipment, after the project is completed will have created about 40 rice drying yards, is poured concrete, area of nearly 2000 m2 / yard, We will give local authorities and relatives in the area to borrow the crane to dry rice field. Local government will save a huge amount of money to invest in constructing rice drying area for the households.
For the compensation work, we are always listening to the opinions of the people and settling in the harmony of the interests of the parties. For families with small area of 200 m2 or less are not included in the clearance area, we can provide reasonable support. We have, and will continue to support, the same with the local in social security, support students, students of the district, the province.
In terms of environmental issues, our projects are implemented in accordance with the world's environmental standards with very close monitoring by local governments and international environmental monitoring organizations.
Ninh Thuan is considered a province with great potential for renewable energy development and the province is also trying to attract investment to take advantage of that. As an investor, what do you think the province needs to pay attention to so investors can rest assured?
Ninh Thuan has the largest wind and solar power potential in Vietnam, but the area is not much and it is difficult to connect with the national power grid. Nowadays, there are many projects asking for connecting, but network of EVN in Ninh Thuan is limited, not enough to receive. That is the biggest limitation. In my opinion, Ninh Thuan province should quickly come up with a solution to promote energy development and want to have a plan to combine with EVN to upgrade the network, transmission and distribution of electricity to be able to receive full the potential capacity of Ninh Thuan.
The characteristic of wind power is the pressure of compensation for low ground clearance but for solar power the pressure will be higher. Therefore, the province also needs to continue to pay attention and support to investors.
How is your opinion about investment process in the province related to the demand of Ninh Thuan provincial government?
I went to many provinces to invest, but when I came to Ninh Thuan, I found that they find their own way and quite special so the project implementation is very convenient. I noticed that the leadership of the provincial Party Committee, the provincial People's Committee, the departments, the districts, and the suburban districts were very close, complying with the business with a high sense of responsibility. Our project of Dam Nai wind power plant project has achieved such rapid progress demonstrating the strong support and direction of the leaders in the province.
Could you share more about TSV's orientation in this year and next year?
This year, we will try to complete and put the following projects into commercial operation: Dam Nai wind power plant project - Phase 2; Wind power project in Phuoc Minh - 27.3 MW; Adani Phuoc Minh Solar Power Project - 50 MW; At the same time, continue to complete the license for the expansion phase of the wind power project Dam. Invest in other wind power projects in Ninh Thuan, including projects that other investors do not deploy.
We have also invested in many provinces in the south of Laos and Cambodia and set a target of about 500 MW of wind power and solar power in Vietnam and around 200 MW in Laos and Cambodia in the next three years.
Thank you and wish the PSV sooner accomplish its goal!