Wind Power: Strategic Step of Gelex Group

1:20:45 PM | 14/12/2021

Given increasing electricity demand for socioeconomic development, renewable energy is being chosen by Vietnamese businesses as a strategic step on a large playing field. Catching up with the clean energy trend, Gelex Quang Tri Energy Joint Stock Company invested in building a wind power facility in Quang Tri.

While Vietnam is facing an energy shortage and responding to natural disasters and climate change, renewable energy development (like wind power, solar power and biomass) is a very appropriate solution and an inevitable trend. With its practical effects, wind power is already available in many places. With great potential for renewable energy development, including wind power, Quang Tri is becoming the center of renewable energy investors. Quang Tri defines the energy industry as a sector for breakthrough development, one of three main pillars for economic development. This energy will make Quang Tri an energy center of the central region in the near future.

The Quang Tri Provincial People’s Committee licensed Gelex Quang Tri Energy Joint Stock Company to invest in wind farms in Huong Hoa district, Quang Tri province. According to Gelex, all five wind power projects, costing a total of more than VND6,000 billion, include Huong Phung 2 and Huong Phung 3 (12 turbines with a total installed capacity of 50MW), and Gelex 1, 2, and 3 wind farms (21 turbines with a total installed capacity of 90MW). In late October 2021, the wind power complex officially came into commercial operation, eligible to get a preferential electricity price (8.5 cents/kWh for 20 years, excluding value-added tax) according to Decision 39/2018/QD-TTg dated September 10, 2018 of the Prime Minister on wind power development support in Vietnam.

Sharing about the construction process of wind power projects, a company representative said, “This is the result of ongoing enthusiasm and efforts of the Board of Directors and employees of Gelex Group in the past time. We have faced many difficulties caused by the COVID-19 epidemic and social distancing. Overcoming difficulties and challenges, we successfully completed all five wind farms before October 31, 2021 and guaranteed economic, technical and financial targets. This affirms Gelex Group's capacity and experience in wind power and lays the groundwork for Gelex to implement larger-scale renewable energy projects in many provinces and cities in the near future.”

Using clean energy to produce electricity, generating no greenhouse gas emissions and causing no environmental pollution, Gelex wind farms match Quang Tri province’s policy on socioeconomic development and environmental protection. Besides, these projects help meet the electricity load growth demand of the province and the region. Gelex Group's wind power projects are financed by BIDV, Vietinbank, and co-financed by Landesbank Baden-Württemberg (LBBW) of Germany in the form of export credit agency (ECA) insured by Euler Hermes. With this form of credit, the projects can access long-term low-interest funding. To meet requirements by the insurer, the investor must be well-reputed, experienced and creditable. Furthermore, the project needs to comply with strict environmental requirements according to IFC's standards.

Technologically, all projects use 4.2-MW gearless turbines manufactured and supplied by Enercon (Germany). The equipment features a large power curve that can generate electricity at a low wind speed (2.0m/s). This is rated the most advanced technology today. Enercon also provides turbine operation services for the investor during the entire operation period.

Mr. Le Van Thang, Director of Gelex Quang Tri Energy Joint Stock Company, said, “The operation of wind farms reaffirms Gelex Group’s business investment strategy, aligned with innovative and sustainable values that it has pursued from the first day. In Quang Tri, the company's strategy is consented and supported by the local government which help us implement our projects effectively. By building sustainable businesses on a given land area, we will continue to develop new projects to enhance the economic value of the model that combines products made by utilizing sectoral advantages.”

After going into operation and being fed into the national power grid, each wind tower will stably and continuously generate about 4 MW/h, equivalent to the capacity of a small hydroelectric plant. This helps meet the demand for electricity load growth, ensure energy security, raise local budget, create high-tech jobs, and promote local socioeconomic development.

The completion of the five wind farms has marked a new step for Gelex in energy investment in particular and in the infrastructure sector in general. With wind power, this renewable energy source is being encouraged by the Government to localities and businesses. This can be considered a pioneering step of Gelex in Quang Tri. Combined with its earlier projects, the company has a total installed turbine capacity of 260 MW, capable of generating 700 million kWh of electricity year. The firm expects to increase the total renewable energy capacity of the facility to 800 MW by 2025.

By Vietnam Business Forum