10:22 | 13/11/2017 Industry
The southern province of Ninh Thuan is continuing to appeal to enterprises to invest in wind and solar power production to contribute to promoting the local economy and ensure national energy security.
The province has granted investment certificates to eight wind power projects with a total capacity of 514MW and a total investment capital of approximately VND19.7 trillion (US$866.8 million). Of which, four projects are currently under construction, with a total capacity of 208.1 MW, including Mui Dinh, Cong Hai, Trung Nam and Dam Nai wind power plants.
In addition, the People's Committee of Ninh Thuan province has also approved the investment policy of three solar power projects, with a total capacity of 150 MW, as well as approving the locations for investment surveys of 30 other solar power projects.
The province is working to complete the planning of solar power development in the 2016-2020 period with a vision to 2030, before submitting it to the Ministry of Industry and Trade for approval. When the planning is adopted it will create a basis for the province to call on investors in the field, as well as mobilising resources from the Government to invest in the renewable power transmission system in the locality.
According to the provincial Department of Planning and Investment, the province will provide investors with the highest incentives possible in accordance with the Government's regulations on land rent, corporate income tax, import tax and infrastructure investment.
Renewable energy projects in the province will be exempt from land rent for the whole lease term (throughout the lifetime of the project) and will be subject to a 10% corporate income tax rate throughout the lifetime of the project.
Investors will also be exempt from corporate income tax for four years and enjoy a 50% reduction of tax payments for the subsequent nine years. Furthermore, such projects will be exempt from import duties on goods imported to create the fixed assets of enterprises.
Director of Ninh Thuan provincial Department of Industry and Trade Pham Dang Thanh said that the province wishes to utilise the advantages of solar and wind energy resources, adding that Ninh Thuan identifies the development of renewable energy as an advantage that will create a breakthrough in order to promote other economic sectors.
According to the planning vision to 2030, Ninh Thuan province could attract investment to develop wind power projects with a total capacity of 1,429 MW and solar power projects with a total capacity of about 4,848 MW.
According to a survey by the World Bank, Ninh Thuan province has the highest wind speed in the country, averaging 7.5 m per second, which is ideal for wind power development. In particular, Ninh Thuan rarely has any storms and winds blow throughout ten months of each year, with a speed of 6.4 to 9.6 m per second, which will ensure the stability of the wind turbines’ output.
Ninh Thuan also has an average of 7.7 hours of sunshine per day, with high intensity of light and solar radiation of 230 kcal per cm2 per year, which is highly favourable for developing solar power.