Module type, origin €/Wp Trend since 03/2017 Trend since 01/2017
Southeast Asia, Taiwan 0,4 +2,6% 0,0%
Vietnam has a great potential for solar power, especially in the central and southern
regions of the country, with an average solar radiation intensity of about 5 kWh/m2
.day;
Meanwhile, in the North, radiation intensity is lower, estimated at only 4 kWh/m2
.day due to
weather conditions with cloudy and drizzle in winter and spring. Solar energy in Vietnam is
available year-round, quite stable and widely distributed across different regions of the
country. Especially, the average number of sunny days in the central and southern provinces is
about 300 days/year. Solar energy is used for the purposes of producing electricity and
providing heat.
Figure 1.3. Map of solar radiation in Vietnam project funded by World Bank, Spanish
Government
The current state of development of solar power in Vietnam, according to data up to
December 2016 shows that the total installed capacity of solar power is only about 7.5MW,
mainly small scale power supply in place ( off-grid for households and some demonstration
projects linking low voltage grid – installed on buildings, offices). However, within a year, many
domestic and foreign investors are promoting and seeking investment opportunities in the grid-
connected solar project with large scale in the whole country.
An industrial scale solar project with the capacity of 19.2 MW connected to the national
grid of Vietnam was first groundbreaked on 15/08/2015 in Diem Thuy village, Duc Minh
commune Duc Duc, Quang Ngai Statue. At present, the governments of many provinces, cities
in the Central, Highlands and Mekong Delta are planning to support to invest in solar power in
their localities.
After the Prime Minister signed the Decision No. 11/2017/QD-TTg dated April 11, 1977
on mechanisms to encourage the development of solar projects in Vietnam, the country is on
many investors are exposed. Initiate solar projects with capacity from 2MW to thousands of
MW in some localities, mainly in the Central and Southern provinces. The investment in solar
power development projects is considered by investors to be positive and capable of
generating good investment efficiency.
Duc Thang 3 solar power plant project with the capacity of 250 MWp is expected to be
located at sub-zone 104, Loc Tan commune, Loc Ninh district, Binh Phuoc province. Investment
project is in line with the central and local policies. The project has great significance in socio-
economic development in rural areas and many difficulties in supplying electricity to the
national grid, contributing to 388.828 MWh/year, helping to diversify electricity sources,
contributing to assure the National Energy Security. In addition, with the clean energy from the
sun to produce electricity, Duc Thang 3 solar power plant annually reduces the emission of
about 316,000 tons of CO2 into the environment (calculated at 0.815 kg CO2/kWh Circular 315,
dated 17/03/2017 by MONRE), contributing to environmental protection and sustainable
development.
This report was prepared for the purpose of supplementing the Duc Thang 3 solar
power plant project with the scale of 250 MWp at sub-zone 104, Loc Tan commune, Loc Ninh
district, Binh Phuoc province to National Power Plan 2011-2020, vision to 2030. This is an
important step for the project owner to carry out the next steps of the project.
1.2. LEGAL BASIS
Supplementary planning report on the project “Duc Thang 3 solar power plant” at sub-
zone 104, Loc Tan commune, Loc Ninh district, Binh Phuoc province, in the Power Development
Plan of Binh Phuoc province is based on the following legal basis:
- Investment Law No.67/2014/QH13 dated 26/11/2014 by the National Assembly of the
Socialist Republic of Vietnam and Government documents guiding the Law on Investment; - Electricity Law No.28/2004/QH11 dated 03/12/2004 and the Law amending and
supplementing a number of articles of the Electricity Law No.24/2012/QH13 dated 20/11/2012
of the National Assembly of the Socialist Republic of Vietnam and Government documents
guiding the Electricity Law; - Construction Law No. 50/2014/QH13 dated 18 June 2014 by the National Assembly of
the Socialist Republic of Vietnam and the Government’s documents guiding the Construction
Law; - Decree No.59/2015/ND-CP dated 18/06/2015 of the Government on the management
CENCO Investment and Construction Joint Stock Company 14
of construction investment projects;
- Decree No. 35/2014/ND-CP dated 29/04/2014 of the Government on the amendment
and supplement of some articles of Decree No.29/2011/ND-CP dated 18/04/2011 of the
Government Assessment on Strategic Environment, Environmental Impact Assessment,
Environmental Protection Commitment; - Decision No.11/2017/QD-TTg dated 11/04/2017 of the Prime Minister on incentive
mechanism for development of solar power projects in Vietnam. This Decision shall be effective
from 01/06/2017 to 30/06/2019. The points worth noting in the Decision are tariffs and
support mechanisms. A summary of the main content of the Decision for the grid-connected
solar power project is as follows:
i) National grid-connected solar power projects at industrial scale;
ii) The electricity buyer is responsible for buying all the electricity generated from the
grid connected solar power projects with the electricity purchase price at the power
transmission point of 9.35 kWh (electricity price is exclusive of value added tax) increase;
iii) This price is only applicable for solar grid connected projects with a solar cell
efficiency of 16% (module is 15%). Electricity purchase prices are adjusted in accordance with
the exchange rate of VND/USD;
iv) The purchase of electricity under a sample contract-no negotiation. The term of the
power purchase agreement is twenty (20) years from the date of commercial operation. After
20 years, the two parties can extend the contract period or sign a new contract in accordance
with the current law;
v) Other incentives include: Investment capital and tax incentives (as for projects in the
field of investment incentives under the current tax law); Land incentives (Solar power projects,
transmission lines and transformer stations for connection to the national power grid shall be
exempted or reduced from land use levies and land rents in accordance with current law. for
projects in the field of investment incentives); Exemption of import tax (raw materials, supplies
and semi-finished products that can not be produced domestically). - Document No.5087/BCT-TCNL dated 09/06/2017 of the Ministry of Industry and Trade
guiding the implementation of Decision No.11/2017/QD-TTg; - Decision No.428/QD-TTg dated March 18, 2020 of the Prime Minister approving the
Project on Adjusting the National Electricity Development Plan for 2011-2020, with a vision to
2030 adjusted power plan VII); - Decision No 2068/QD-TTg dated 25/11/2015 of the Prime Minister approving
Vietnam’s Renewable Energy Development Strategy to 2030 with a vision to 2050. One of the
main contents of the strategy is to prioritize the rapid development of solar power, the
direction of development of power from solar energy of Vietnam is clearly stated in the
decision as follows:
i) Development of solar power to supply electricity to the national electricity system;
ii) Electricity generated from solar energy from about 10 million kWh in 2015 to about
1.4 billion kWh in 2020;Approximately 35.4 billion kWh by 2030. The ratio of electricity
produced from negligible current levels to about 0.5% by 2020, about 6% by 2030.
- Circular No. 16/2017/TT-BCT of the Ministry of Industry and Trade dated 12/09/2017
on development of projects and sample contracts for solar power projects.
In order to achieve this goal, the Government of Vietnam has introduced many
incentives for investors. Renewable energy plants will receive investment incentives, tariff
preferences, and tax incentives. Investors may prefer other incentives such as import duty
exemption on equipment, exemption from corporate income tax and land use tax exemptions
for a period of time. The investment credit incentives under the current law provisions on
investment credit and export credit of the State.
Compulsory standards for electricity investors from fossil fuels and power purchase
units in the coming time are: - Generating units with capacity of installing power sources of more than 1,000 MW
(excluding BOT electricity sources), the proportion of electricity produced from the use of
renewable energy sources (not Including hydropower sources with a capacity of more than
30MW: by 2020 not less than 3%; by 2030 not less than 10%; - The electricity distribution units have the ratio of electricity produced, purchased
electricity and final customers using electricity generated from renewable energy sources
(excluding hydropower sources with a capacity of over 30 MW). by 2020, not lower than 5%;
20% less than 10%. - The Ministry of Industry and Trade’s Circular No. 43/2013/TT-BCT dated December 31,
2013 stipulates the contents, order and procedures for elaboration, appraisal, approval and
adjustment of electricity development plannings; - Circular 03/2016/TT-BXD dated March 13, 2016 dated March 10, 2016 regulating the
decentralization of construction works and guidance on the management of construction
investment activities; - Circular No.39/2015/TT-BCT dated November 18, 2015 regulating distribution system;
- Circular 42/2015/TT-BCT dated 01/12/2015 dated 01/12/2015 regulating the
measurement of electricity in the Power System; - Decision No. 886/QD-BCT dated March 17, 2017 of the Ministry of Industry and Trade
approving the development plan of Binh Phuoc province in 2016-2025 with a vision to 2035; - Pursuant to Correspondence No. 3946/UBND-TH dated 24/11/2017 of Binh Phuoc
provincial People’s Committee on the approval of the policy permitting Duc Thang Trade and
Build Company Limited to survey on supplementary project of solar power planning into the
provincial power development planning; - Pursuant to Correspondence No. 1919/SCT-QLNL dated 06/12/2017 of Binh Phuoc
provincial Department of Industry and Trade on surveying, preparing and complement the
scheme of solar power project to power development planning; - Pursuant to the minutes dated 11/12/2017 between Binh Phuoc provincial Department
of Industry and Trade; People’s Committee of Loc Ninh district and Duc Thang Trade and Build
Company Limited concerning the survey, agreement on the location, supplementing solar
power project planning to the power development planning; - Current status of power grids and electricity demand in Binh Phuoc province;
D u c T h a n g 3 S o l a r P o w e r P l a n t S u p p l e m e n t a r y p l a n n i n g
CENCO Investment and Construction Joint Stock Company 16
- Meteorological data on solar radiation, solar radiation of Binh Phuoc province.
1.3. MAIN INFORMATION ABOUT THE PROJECT - Name of project: Duc Thang 3 solar power plant;
- Client: Duc Thang Trade and Build Company Limited;
- Scale of investment: installed capacity of 250 MW;
- Location of the project: Sub-area 104, Loc Tan Commune, Loc Ninh District, Binh Phuoc
Province; - Occupation area of the project: 265,5 ha;
- Total number of solar panels: 757.000 panels;
- Capacity of each panel: 330Wp;
- Total number of sets of inverters: 123 sets (1500kW AC/inverter)
- Total number of step-up 3MVA-0,4/22kV transformers:62
- Voltage grade connected to the national grid: 220kV;
- Connection point: 220kV busbar of Loc Tan 220kV breaker substation;
- Substation: 22/220kV-2x250MVA substation;
- To build Duc Thang 220 kV substation, installed with 2 transformers with a capacity of
250MVA to transmit the capacity of the cluster of Duc Thang 1, Duc Thang 2, Duc Thang 3 solar
power plant to the national power grid. - Connection line: To construct a new 220kV double-circuit transmission line, 2xACSR-
400 conductor section with the length of about 4.5 km connected to the national grid on the
110 kV busbar of Loc Tan 220kV breaker substation;
- Estimated total investment capital: VND 4.980 billion (after tax);
- Yearly average electricity output: 388,828 million kWh/year;
- Schedule of the project:
- Construction commences in June 2019;
- The plant is put into operation of stage 1 (150MWp) in 06/2020;
- The entire plant is put into operation in 12/2020.
1.4. INFORMATION ABOUT THE PROJECT CLIENT
Client: Duc Thang Trade and Build Company Limited;
Address: C80, Chieu hamlet, Ward 14, District 4, Ho Chi Minh city
Tax code: Business Registration Certificate No. 0306085508 issued by Ho Chi Minh City
Department of Planning and Investment on August 20, 2010;
Representative: Ms. Nguyen Thi Thuan Vi;
CHAPTER 2. THE NECESSITY FOR PROJECT CONSTRUCTION INVESTMENT
2.1. OVERVIEW OF THE PROJECT POSITION
2.1.1. Overview of the project location
Duc Thang 3 solar power plant project is located in Sub-area 104, Loc Tan commune, Loc
Ninh district, Binh Phuoc province. It is production forest land under the land area separated
from the stand to develop solar power in the Revised Forest Protection and Development
Planning, Planning of three types of forest in the province in the period of 2016-2020 approved
by the Provincial People’s Council in Resolution No. 47/2017 / NQ-HDND dated 12/12/2017.
Total solar planning area of Duc Thang solar power project is about 530 hectares,
without architectural works or firm construction of local people or the State.
Currently, there is a part of stone pit planned area of 14.6ha.This area will not be
planned into Duc Thang solar power plant project.
Figure 2.1 Site boundary map
At present, to go into the project by car from the People’s Committee of Loc Ninh
District to the project site,there are two options:
- Option 1: From People’s Committee of Loc Ninh District go straight to the West,
passing the military airport, then go to Vietnam – Cambodia border;after that follow the
border patrol way about 5km to reach the project. This route is about 19km.
Figure 2.2. Options for moving into the project
- Option 2: From People’s Committee of Loc Ninh District go to the North along Highway
13, to Chiu Riu T-junction, turn left to the West, go about 13km to the project site. This route is
about 28.1km.
Table of Duc Thang Solar Power Project Coordinate (Vietnamese Coordinate System):
Table 2.1 Site coordinates of Duc Thang Solar Power Plant
Coordinating elevation Coridnate VN2000, Meridian axis 1060
15 projection 30
X Y
DT1 523001 1314508
DT2 522960 1314659
DT3 523308 1314962
DT4 523337 1314889
DT5 523617 1315101
DT6 523802 1315134
DT7 523957 1315089
DT8 524087 1315124
DT9 524175 1315248
DT10 524688 1315248
DT11 524689 1315345
DT12 525393 1315344
DT13 525553 1315243
DT14 526118 1315530
DT15 526287 1315312
DT16 526450 1314757
DT17 526362 1314254
Coordinating elevation Coridnate VN2000, Meridian axis 1060
15 projection 30
DT18 526000 1313939
DT19 525760 1313547
DT20 525489 1313635
DT21 525390 1313288
DT22 525102 1313316
DT23 524848 1313416
DT24 524554 1313433
DT25 524534 1313308
DT26 524399 1313239
DT27 524292 1313281
DT28 523984 1313250
DT29 523888 1313034
DT30 524090 1312870
DT31 524072 1312798
DT32 523712 1312833
DT33 523786 1313232
DT34 523704 1313865
DT35 523428 1314429
DT36 523334 1314494
Table 2.2. Coordinates of stone pit planning site
Coordinates
X Y
523861 1314797
523859 1314348
523689 1314349
523555 1314593
523406 1314671
523410 1314801
Stone pit planning site is not under Duc Thang 3 Solar Power Plant.
Loc Ninh is a mountainous district of Binh Phuoc province, located in the southern key
economic region. It is a district adjacent to Cambodia, with Hoa Lu International Border Gate –
the gateway of the southern key economic region with not only Cambodia but also with other
countries in the ASEAN region.
- To the North and West of the district it borders the Kingdom of Cambodia;
- To the South, it borders Binh Long district;
- To the East, it borders Phuoc Long and Bu Dop districts;
- A small part of Tay Ninh district borders Tay Ninh province.
Loc Ninh has 7/16 administrative units bordered by the Kingdom of Cambodia. This is
one of the important advantages of geographic location, favorable for economic trade with
Cambodia in socio-economic development through the international border gate of Hoa Lu.
Loc Tan is a border commune, large and complex. In terms of agricultural production,
the commune has two main economic sources, the garden economy and the state rubber
workers. With the characteristic of many years ago, the commune was the area with relatively
large population, from many regions and regions in the country, so besides the complexity of
demographic changes from time to time, on the other hand, the convergence and promotion
for the diversity of cultural nuances in the community.
Figure 2.3. Some pictures of the land of the project
2.1.2. Potential for solar power in the project area
Due to the seasonal rain, the amplitude of the humidity in the air between the rainy
season and the dry season is quite high. The average annual humidity is from 80.8÷81.4%.
Average annual average is 45.6÷53.2%; the highest moisture content was 88.2%; month with
the lowest moisture content of 16%.
The average temperature in the year is high and stable from 25,8÷26,2o
C. The lowest
average temperature is 21.5 ÷ 22o
C. The highest average temperature is from 31,7÷32,2o
C. In
general, the temperature change over the months is not large, but the temperature difference
between day and night is quite large, about 7 to 9o
C, especially in the dry season. The highest
temperature in the months 3,4,5 (từ 37÷37,2o
C) and the lowest in December is 19o
C.
Located in sunny areas, the total number of sunshine hours in the year is from
2400 to 2500 hours. The average number of sunshine hours per day ranges from 6.2 ÷ 6.6
hours. Most sunny hours are in January, February, March, April; and the least sunny
hours are in July, August, and September. This is a good condition for many industries,
especially solar power exploitation for electricity generation.
Figure 2.4. Temperature and radiation index of Loc Ninh district
According to data collected, the meteorological stations in Binh Phuoc province do not
have statistics on the intensity of radiation for the project area. Therefore, during the
supplementary planning phase, the sources of the radiation data of NASA and Meteonorm will
be used to evaluate the potential of solar power in the project area. According to data from the
Meteonorm database, total solar radiation in the project area is about 1875.2 kWh/m2/year.
The table below describes the solar radiation in the project area according to different sources:
Table 2.3. Radiation data in Loc Ninh district
Data
Monthly and average radiation (kWh/m2
)
Jan. Fed. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.
Meteonorm 164,9 150,3 172,9 152,5 165,6 161,1 171,4 165,3 141,5 146,3 136 147,4
NASA 166,8 161,8 186,0 179,1 169,3 155,1 157,8 150,7 144,6 148,2 149,1 153,8
According to NASA radiation data, the total solar radiation of the project area is about
1922,2 kWh/m2/year. According to Meteonorm’s radiation data, the total solar radiation of the
project area is about 1875,2 kWh/m2
/year.
From the table above, the intensity of radiation in the project area according to
different data sources is negligible. NASA data source is a free data source, the radiation data is
the average data in 1 longitude and 1 latitude grid (110km x 110km), so the calculation is only
for one location. The error is quite large and only a reference. Meanwhile, Meteonorm sources
are paid for commercial purposes so they are more reliable. Thus, the solar radiation data from
the Meteonorm source will be used as the basis for calculating the electricity output in this
period. Accordingly, the average radiation project area is expected to be 1875,2 kWh/m2
/year
(equivalent to 5,14 kWh/m2
/day).
2.2. NATURAL CHARACTERISTICS OF BINH PHUOC PROVINCE
2.2.1. Geographical location
Binh Phuoc is a mountainous province in the West of the South East, Lam Dong and
Dong Nai provinces to the East, Tay Ninh and Cambodia to the East, Binh Duong Province to the
South Dak Lak and Cambodia to the South.
Figure 2.5. Geographical location map of Binh Phuoc province
As one of the eight provinces in the southern key economic region, Binh Phuoc plays an
important role in the region’s agricultural development, especially with high-yielding mainland
agricultural products leading the whole region, rubber, cashew, pepper, etc.
So far, the province has had 11 administrative units, 3 towns and 8 districts, including:
Dong Xoai, Phuoc Long, Binh Long, Dong Phu, Loc Ninh, Bu Dop, Bu Dang, Bu Gia Map, Phu
Rieng, Hon Quang and Chon Thanh districts. With a total of 111 communes, wards and towns,
there are 92 communes, 5 towns and 14 wards.
The main traffic lanes of Binh Phuoc are National Roads 13 and 14 throughout the
length of the province, which is part of the National Interregional Intercity network. From Binh
Phuoc, it is possible to travel and transport goods to economic regions nationwide, which is a
condition for accelerating the process of opening and integrating with the external economic
development, linking Ho Chi Minh City. . Ho Chi Minh City (the Center for Industry and
Commerce in the South) with the Northeast of Cambodia, the Central Highlands with high
potential, favorable conditions for trade and economic development of the province in the
coming time.
2.2.2. Topographic – Geological charateristics
Binh Phuoc is a plateau in the North and Northeast, in hilly terrain, lower to the west
and southwest.
a) Land resources:
Binh Phuoc province has a total natural area of 6,871.5 km2. According to the
classification, the high-quality land occupies 61.17% of the total area of natural land, the
average quality land occupies 36.78% of the natural land and poor quality land, or need to
occupy investmentabout 2% of total land area. It is one of the provinces with good quality of
land compared to the whole country and very important conditions in the development of
agricultural and industrial production of the province.
b) Forest resources:
The total forest land area of the province accounts for 51.32% of the total natural area
of the province. Of which forest land accounts for 48.37% of the forest land area and 24.82% of
the province’s natural area.
The forest position of the province plays a very important role in protecting the
ecological environment, creating favorable conditions for the implementation of the socio-
economic strategy of the Southeast in general and neighboring provinces in particular. Binh
Phuoc forest is responsible for regulating the flow of big rivers such as Song Be, Saigon River,
and Dong Nai River. Reduce floods abruptly for coastal provinces and ensure water sources in
the dry season.
c) Mineral resources
Mineral resources are scattered mainly in the west and some in the center. 91 mines,
ore occurrences and mineral spots have been discovered with 20 potential minerals in four
groups: fertilizers, metals, non-metals, precious and semi-precious stones. Construction
materials (stone, sand, clay, pearlite) kaolin, limestone … are the most promising and important
minerals of the province.
Specifically, there are 4 bauxite ore mines on an area of 13,400 ha; 6 mineralization
points; 26 construction quarries; 3 sand, gravel and pebbles; 11 brick clay brick; 15 laterite
mines and leveling materials; 5 kaolin mines; 2 large-scale limestone quarries; 2 mines of
cement and laterite; 6 mines; 2 laterite mines; 2 mines and 4 quarries.
At present, the province has only exploited some mines such as limestone, construction
stone, gravel sand, clay bricks and tiles to meet a part for consumption and construction in the
province, the remaining mines are exploring to have investment base to exploit.
d) Water Resources:
Surface water: There are relatively many rivers and streams with the density of 0,7÷0,8
km/km2
, including Saigon River, Song Be River, Dong Nai River, Mang River and many large
streams. There are also some lakes and dams such as Suoi Lam, Suoi Cam, Thac Mo
hydroelectric dam (capacity 1.47 billion m3), Can Don hydropower dam, Sork hydroelectric dam
and so on.
Underground water sources: low areas along rivers and streams, especially in the
southwest of the province, abundant water resources can be exploited for socio-economic
development.
Bazal aquifer (QI-II) is distributed on a scale of over 4000 km2, water flow is relatively
0.5 – 16 l / s, but due to large fluctuations in permeability, the rate of successful drilling not tall.
The Pleitocene aquifer (QI-III), which is a large reservoir with good water quality, distributes in
Binh Long and Dong Phu districts. Pliocene aquifer (N2) flow 5 ÷ 15 l / s, good water quality.
There are also Mesozoic aquifers (M2) distributed in low hills (from 100 ÷ 250m).
2.2.3. Climate – Temperature
Binh Phuoc province is located in the region characterized by tropical monsoon sub-
equatorial climate, there are two distinct seasons: rainy season and dry season.
The average temperature in the year is high and stable from 25,8°C÷26,2°C. The lowest
average temperature is 21,5°C÷22°C. The highest average temperature is from 31,7°C÷32,2°C.
In general, the temperature changes over the months are not large, but the temperature
difference between day and night is quite large, about 7°C to 9°C especially in the dry months.
The highest temperature is in the months 3,4,5 (từ 37°C÷37,2°C) and the lowest in December is
19°C.
Located in a sunny area. The total number of sunshine hours in the year ranges from
2,400 to 2,500 hours. The average number of sunshine hours per day ranges from 6.2 ÷ 6.6
hours. Most sunny in January, February, March, April and the least sunshine in July, August,
September.
Annual rainfall varies from 2,045 ÷ 2,325 mm. The rainy season is from May to
November, accounting for 85 ÷ 90% of the total rainfall, the month with the highest rainfall 376
mm (July). Dry season from late November to early May next year, rainfall only accounts for 10
÷ 15% of total rainfall in the year, the month has the least rainfall in February and March.
2.2.4. Hydrographical characteristics
River network: Binh Phuoc has many small rivers and streams distributed fairly regularly
throughout the province, notably Song Be, Dong Nai River, Saigon River and tributaries.
Characteristics of water sources
