THE COVID-19 PANDEMIC EFFECTS ON THE SUPER ENERGY'S WIND POWER PROJECTS

THE COVID-19 PANDEMIC EFFECTS ON THE SUPER ENERGY'S WIND POWER PROJECTS

The Covid-19 pandemic has had a strong impact on the economy, society, and the project progress of renewable energy investors in Vietnam, including Super Energy. Therefore, the extension of the time to apply the FIT price for wind power projects (until the end of June 2022) is to increase the "resistance" for businesses to firmly overcome the epidemic, complete the projects in the near future.

 

Super Energy Corporation Public Company Limited, formerly known as Super Block Public Company Limited, was established in 1994, in Thailand, with a registered capital of 150 million Bath. Super Energy's business field is the production and distribution of aerated concrete. In 2005, Super Energy Corporation was listed on the Stock Exchange of Thailand (SET).

 

In 2017, Super Energy expanded the investment in Vietnam's green energy industry (wind and solar power). the goals are to conquer the domestic renewable energy sector and to become the leading manufacturer in ASEAN, and create a green environment.

 

Up to now, Super Energy has invested in 148 renewable energy projects in Thailand and Vietnam, including solar power, wind power, biomass power (renewable energy from garbage), with a total supply capacity of 1,709.32 MW.

 

Particularly in Vietnam, Super Energy has put into commercial operation (COD) for 9 solar power projects in the provinces: Binh Phuoc, Ninh Thuan, Binh Thuan, An Giang, and Phu Yen.

 

Specifically, solar power plants: Binh An (50 MW); Phan Lam (36.72 MW); Sinenergy Ninh Thuan 1 (50 MW); Thinh Long AAA Phu Yen (50 MW); Van Giao 1 (50 MW); Van Giao 2 (50 MW); Loc Ninh 1 (200 MW); Loc Ninh 2 (200 MW); Loc Ninh 3 (150 MW). These nine solar power plants annually provide 836.72 MW of electricity to the national electricity system.

 

Regarding wind power projects, Super Energy Corporation is building 4 plants, with a total capacity of 421 MW, including Cong Ly Soc Trang offshore wind power (30 MW), Cong Ly Bac Lieu wind power (141 MW); Onshore wind power: HBRE Phu Yen wind power (200 MW), HBRE Gia Lai wind power (50 MW).

 

Super Energy plans to put into commercial operation for 3 wind power projects in Gia Lai, Bac Lieu, Soc Trang in 2021 to enjoy the wind power development policy according to Decision 39/2018/QD-TTg dated September 10 2018 of the Prime Minister on the mechanism to support the development of wind power projects in Vietnam and Circular 02/2019/TT-BCT dated January 15, 2019, of the Ministry of Industry and Trade, regulating the implementation of developing wind power project and Sample Power Purchase Agreement for the wind power project.

 

Solar and wind power projects, after being installed, put into operation, have contributed to supplementing electricity due to the increasing demand for electricity in both production and consumption.

 

However, in fact, not only Super Energy Group but also enterprises investing in wind power projects in Vietnam are facing difficulties in completing the connection and commercial operation on schedule, before January 1. 11/2021 (such as Decision 39/2018/QD-TTg) due to the prolonged impact of the Covid-19 epidemic and a violent outbreak in 2021 globally. Specifically, the pandemic has been affecting not only construction activities but also purchasing plans, especially the production of wind turbine generators. In addition, the production and supply of equipment, as well as key accessories, were in short supply and delayed in delivery.

 

The situation of the epidemic has become increasingly complicated since April 2021, the Government of Vietnam has implemented measures to prevent, control, and localize the Covid-19 epidemic, making the transportation of materials and people's movement restrictions, especially the allocation of foreigners, as well as technical workers was interrupted, leading to delays in financing the project and construction, in order to put it into commercial operation.

 

In addition, road traffic obstacles also affect the progress of transporting equipment from the seaport to the construction site. The turbines and propellers of wind power pylons with a very large weight and size need to be transported by specialized transport equipment, but the current road system has a certain load capacity. Before transporting, the investor must survey and evaluate the feasibility of the roads before being granted a transportation permit, which prolongs the time and slows down the completion progress.

 

Mr. Supa Waisayarat - Regional Director of Super Energy Corporation said: In order to ensure the power capacity of the plants, as well as contribute to maintaining energy security, we have arranged personnel to comply with " 3 on-site” at factories (from the beginning of June 2021) to operate 24/7. For ongoing projects, the construction department also arranges for workers, engineers, and management personnel to set up camps at the construction site, minimizing travel, in order to avoid Covid-19 infection.

 

Super Energy Corporation always complies with all regulations of Vietnam in the prevention and control of the Covid-19 epidemic and project implementation regulations, but there are still objective obstacles affecting the progress of projects. Therefore, we hope to receive the support of agencies, departments, and sectors to remove difficulties for wind power businesses in general and Super Energy in particular," said Mr. Supa Waisayarat.

 

Despite being in difficult times, Super Energy still does not forget the social responsibility of a business joining hands to support the fight against the Covid-19 epidemic. In the past time, Super Energy has brought medical supplies to Children's Hospital 2 in Ho Chi Minh City, an intensive ventilator for Hospital 175 in Ho Chi Minh City, contributing to the Vietnam Vaccine Fund, supporting items and food for people, as well as those on the front lines against the epidemic in the provinces: Binh Phuoc, An Giang, Phu Yen.

 

Facing current challenges, Super Energy is still trying to accelerate construction to keep up with the set schedule, with the expectation of completing the project on time. In addition, Super Energy expects the support of the government, the Prime Minister to consider and support businesses by extending the time to enjoy preferential rates for wind power projects (according to Decision No. 39/2018/QD-TTg of the Prime Minister). Super Energy Corporation always aims to become an indispensable factor contributing to enhancing the power supply for the system, ensuring energy security for Vietnam's economic development, and contributing to environmental protection.

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