PFSLYSON in english (backup)

ELECTRICITY OF VIETNAM
INSTITUTE OF ENERGY

Draft Report

PRE-FEASIBILITY STUDY
OF
WIND POWER SUPPLY TO LY SON ISLAND DISTRICT,
QUANG NGAI PROVINCE

Hanoi, September 2003


I. Project summary
The PFS Report of Wind Power Supply to Ly Son Island District has contents as
follows:
-

Identifying project size and construction site.

-

Proposing main technical solutions for meeting future electricity demand in
compliance with natural conditions, socio-economic development orientation of Ly
Son Island district in particular and the whole Quang Ngai province in general.

-

Estimating construction work volume and investment requirement.

-

Determining economic and financial effectiveness of the project. The organizations
involved in the project are power company No.3, Institute of Energy and Power
Utility of Quang Ngai province.

After calculation and analysis, the project has following results:
-

The project will be put into operation in 2005 and terminates in 2030.

-

Reduced CO2 emission over the life span of the project is 97097.2 tons of CO2.

-

Economic and financial indicators are good if electricity selling price is 10.53
UScent/ kWh and CO2 emission reduction are taken into account, and they are as
follows:

-

FIRR = 7.7 %

FNPV = mil.US$ 0.05

EIRR = 0%

ENPV = mil.US$ 0

B/C =1.02
B/C = 1

The project will contribute in economic development, job creation, increasing living
standards for the people, ensuring reaching socio-economic indicators set out by the
Island district such as GDP growth rate of 8% by 2005 and 10% by 2010.

II. Location map of the project
Ly Son Island district is located in northwest of Quang Ngai province with latitude
coordinates from 15o32' to 15o58', longitude coordinates from 109 o5' to 109o14' east. It
lays on the way to Eastern Sea through Central region via Dung Quat, 25 miles from the
Dung Quat industrial zone in the west and 18 miles from Sa Ky port of Son Tinh district
in the south- west.

III. General introduction
3.1. Electricity demand forecast for Ly Son Island
district for 2005, 2010.

2


3.1.1. Legal backgrounds for calculation of electricity demand in 2005, 2010
for Ly Son island district.
-

"Plan of rehabilitation and development of power network of Quang Ngai
province for the period 2000-2005 with consideration to 2010" prepared by
Institute of Energy and approved by Ministry of Industry.

-

"2001-2005-2010 socio-economic development plan for Ly Son island
district" prepared by Quang Ngai Department of Planning and Investment
and approved by People Committee of Quang Ngai province.

-

2001-2005 Socio-Economic Development Plan for Ly Son Island District
prepared by people committee of Ly Son district.

-

Resolutions of Third Party Congress Of Ly Son District Party Unit for the
period 2001-2005.

-

Existing electricity demand of sectors and forecast electricity demand for
2005, 2010 for Ly Son Island District.

-

Current status of power network and electricity supply - consumption in
1999, 2001 of Ly Son island district provided by People Committee of Ly
Son district.

3.1.2. Method of Electricity demand forecast
According to Degree No 389/1999/QD-TCTK dated on June 6 th, 1999 of
General Directorate of Statistics, electricity demand is calculated with 5 sectors as
follows:

-

Industry- construction

-

Agriculture- Forestry- Aquatic

-

Service – commerce

-

Residential lighting and management

-

Others: include electricity supplied to schools, hospitals, public lighting and
other activities not included in four above groups.

Electricity demand of Lyson Island is calculated based on direct forecast
method. According to this method, electricity demands are calculated for sectors
based on electricity consumption norms and production scale of each user.
-

Industry- construction loads: are calculated based on existing load statistic data
and expected enlarging scale in the forecast period. New users’ demands are

3

based on capacity and production scale or electricity consumption norm per
product.
-

Agriculture - forestry – aquatic loads : mainly used for services for breeding
and aquatic activities and for irrigation pump machines.

-

Commerce – service loads: are calculated based on the capacity of consumption
equipment in service and development rate in this sector.

-

Residential lighting and management loads are calculated based on Document
7647/EVN/DNT-MN dated on Dec, 29th, 1998 of Electricity of Vietnam.
Residential consumption norm is 275 kWh per household in 2005 and 470 kWh
per household in 2010. For administration agencies, electricity demand in
coming years are based on existing electricity consumption considering annual
development rate as well as electrical equipment modernization level.
3.1.3. Electricity Demand For Ly Son Island District In The Periods Up To
2005, 2010
Table 3.1 : Power Demand Up To 2005, 2010
Unit : kW

No

Sector

2000

2005

2010

1

Industry - construction

23

380

2

Agriculture - forestry - fishery

60

60

3

Services - commerce

35

60

4

Lighting and management

268

973

1972

5

Other demand

15

82

140

Pmax

273

900

1780

Table 3.2: Electricity Demand up to 2005, 2010

4


2005
No.

Sector

Annual growth
rate (%)

2010

A (103
kWh)

%

A (103
kWh)

%

20002005

20062010

1

Industry - construction

405

23.8

760

22

13.4

2

Agriculture - forestry fishery

60

3.5

60

1.7

0

3

Services - commerce

35

2.1

72

2

15

4

Lighting and
management

1080

63.4

2366

68

33.3

17

5

Other demand

123

7.2

210

6.1

52.0

11.3

Total sales

1703

100

3468

100

44.4

15.3

Loss + owned use

277

14

428

11

Electricity production

1980

41.5

14.5

3896

Therefore, average electricity consumption per capita for Ly Son district is 78
kWh in 2005 and 149.5 kWh in 2010. Due to the low start point , although electricity
consumption growth rate in coming years is rather high (44.3% in the period 2001-2005
and 15.3% in the period 2006-2010), but electricity consumption per capita is still low.

3.2. Introduction of Ly Son Wind Power Project
This is a project using wind turbines to produce electricity for Ly Son island district.
Participating agencies :
-

Power Company No. 3, the Investor and Owner of the project

-

Institute of Energy, Consultant

-

Power Company No. 3 and Institute of Energy will look for foreign investment.

-

Power Utility of Quang Ngai province under Power Company No. 3 is responsible
for operation, management of the project and power network on the island after
project has been completed and put into operation.

IV. Rationale
4.1. Current status of wind energy application for
electricity generation

5


Wind power generator-turbine was studied and applied in Vietnam since early 80 th years
under the framework of one national research program on application of new and
renewable energies. The organizations involved in this program were : Institute of
Energy, Ministry of Transport, Engineering Institute of Ministry of Defense, Renewable
energy Research Centers of Hanoi and Ho Chi Minh City Universities. Most of these
organizations carried out research, experiment of wind turbines with capacity from 150
W to 5 kW. However, the wind turbines with capacity above 1 kW were failed. As of the
end of 1999, about 1000 family-sized wind turbines were installed and used in the
coastal areas from Da Nang towards the south.
In 1999, one wind turbine with capacity of 30 MW sponsored by Japan has been

installed in Hai Thinh commune, Hai Hau district, Nam Dinh province. This wind
turbine has the largest capacity in Vietnam so far, however, unfortunately, it almost
doesn't work. The reason may be due to too low wind tower (only 12 m) and it was
shadowed by trees and topography around. The second large wind turbine (2 kW) was
installed in the end of 2000 in Dac Ha district, Kon Tum province, sponsored by To Ho
kV company (Japan). So far this turbine is well operating.
- Wind power project in Khanh Hoa : Total installed capacity is 20 MW to be
invested by VENTIS - FRG under scheme of BOT. The procedures at Vietnamese side
were completed, however, so far the project is not yet implemented.
- Wind power project in Quy Nhon : total installed capacity is of 30 MW, to be
invested by the Clean Energy Joint stock Company under the scheme of BOT. At
present the feasibility study of this project has been completed.
- Wind power project in Ninh Phuoc district, Ninh Thuan province: Capacity of
625 kW. This is a pilot project based on the cooperation with Indian Government. The
India will sponsor 55% and Electricity of Vietnam will bear remainder 45%. The FS
report of the project has been completed.
- Wind power project in Bach Long Vi Youth Island district : Capacity of 800
kW. This project is invested by the Government of Vietnam. At present, the project is at
stage of equipment procurement bidding.

4.2. Difficulties and problems pertaining to wind
power projects.
- Technical aspects : For Vietnam, hybrid system of wind - diesel power
generation is very new, requiring high technology needed to be imported. Therefore,
installation works must be carefully discussed between Vietnam machine installation

6


company and equipment supplier and the supplier must be responsible for instructions

on operation and maintenance later.
- Regarding transport : The equipment is heavy and large, the island is far from
main land, therefore, transportation of equipment will meet many difficulties. It needs to
enhance some ports and roads from ports to the project site.
- Regarding investment : it needs to have policy to support investment and
policy on subsidy for electricity prices on the island.

4.3. The objectives of sustainable development
The Island district will mobilize all resources for promotion of sea economic
development, integrating expansion of fishery services, tourist services, commerce,
stabilization of economic development in order to ensure high economic growth rate,
eradication of hungry households and alleviation of poor households, changing rural
aspects and maintaining national defense security.
Particular objectives :
- GDP growth rate in 2001-2005 is 7 - 8% / year, in 2006-2010 is 10% / year.
- Average income capita per year will be 403 US$ in 2005; 540 US$ in 2010.
- Natural population growth rate : 1.6% in 2005 and 1.4% in 2010.
- Annual increase of ship quantity is 10.
- By the beginning of 2005 there will be a clean water system for living and
production.
- By 2005, there will be no hungry households and 70% of poor houses will be
reduced.
Table 4.1 : Targets of Sustainable Growth Rates of Ly Son Island District
No

Indicator

Unit

1996-2000

20012005

2006-2010

1.6

1.4

I

Growth rate

1

Population

%/year

2

GDP

%/year

7.6

7-8

10

3

GDP Industry Craft

%/year

15.8

24.0

14

4

GDP Agriculture

%/year

10.3

8.4

4

5

GDP Sea economy

%/year

8.6

11.1

11

7


No

Indicator

Unit

1996-2000

20012005

2006-2010

%/year

7.4

8.4

9

2000

2005

2010

ha

997

997

997

people

19500

21110

22630

mil.VND

121601

200714

294900

US$

192

403

540

Structure

%

100

100

100

1

Industry, crafts

%

2.2

4.0

5.0

2

Agriculture

%

12.8

11.6

8.6

3

Sea economy

%

57.9

60.0

63.0

4

Services, commerce

%

27.1

24.4

23.4

6

GDP service, commerce

II

Indicator

1

Natural land area

2

Population

3

GDP

4

Average in come

III

4.4. Policies of Vietnam Government on Wind Energy
Development of renewable energy must be based on the objectives of economy, society,
environment and living standards in each ecological area. The Government can provide
financial assistance for renewable energy projects based on average income of rural and
mountainous households. 100% tax exemption for import of renewable energy
equipment and technologies. Efforts should be focused on study and application of
renewable energy technologies in areas which are impossibly connected to national
power grid due to difficult topographical conditions or too expensive investment. Wind
energy should be used in island and mountainous areas where are impossibly connected
to the national power grid and encouraging use of self-made small wind turbines and
developing grid connected large wind generator turbines.

4.5. Benefits of The Project
-

Electricity cost is reduced in comparison with case of using only diesel power
generator

-

Saving fossil fuels, contributing in ecological environment protection.

-

Contributing in improvement of sprit and material life of people living on the island.

V. Geographical Location And Natural Conditions of Ly Son
Island District

8


5.1.

Geographical

Location

and

Topographical

Features
Ly Son district is an island district which was separated from Binh Son district in 1993.
Ly Son island district has also name of Cu Lao Re existing from end of XVI century and
Name of Ly Son began from 1998. This is one of 13 districts, towns of Quang Ngai
province.
Location : Ly Son Island district is located in northwest of Quang Ngai province with
latitude coordinates from 15o32' to 15o58', longitude coordinates from 109o5' to 109o14'
east. It lays on the way to Eastern Sea through Central region via Dung Quat, 25 miles
from the Dung Quat industrial zone in the west and 18 miles from Sa Ky port of Son
Tinh district in the south- west.
Area : Ly Son island district has natural land area of 997 ha including two islands (big
and small) namely Ly Vinh and Ly Hai communes.
Population : total population of the district as of June 2001 was 19500 people living in
3995households, of which 700 people are belonged to military forces.
Topography : In general, the topography is even with elevation from 20 to 30m over the
sea surface (there are no big rivers or streams on the island. There is only small stream

which flows in rainy season). Most lands have slope less than 8 o, suitable for
agricultural production and residential settlement.
Climate : The climate is tropical with monsoon wind. The rainy season lasts from
September to February with rainfall accounting for 75% of whole year rainfall. Dry
season is from March to August subject to south - east wind. Average annual
temperature is 26.4 oC. Average annual rainfall is 2000 mm.
Natural resources : The land is surrounded by sea, therefore the district has favorable
conditions for raising aquatic products. Total reserve of seafood of Quang Ngai sea is
about 80000 tons of which exploitable potential is of 33000 tons/year. Ly Son island
district alone can exploit 6500 tons/year.
b) Based on data of system of meteorological stations uniformed in terms of
observation medium, observation time calculation methods and self-registering devices,
Meteorological Institute carried out calculation of average annual and monthly wind
speeds for the whole network of meteorological stations and average hourly wind
speeds for those station which have self - recording devices.
According to data measured in Ly Son hydro-meteorological station over 13 year
period from 1985 to 1997 at height of 12 m above ground surface, monthly and yearly
average wind speeds are as follows :

9


Table 5.1 : Monthly and yearly average wind speeds
Month

1

2

3

4

5

6

7

8

9

10

11

12

Whole
year

Vave
(m/s)

4.84

4.61

5

4.23

3.13

2.74

2.64

2.8

3.55

5.39

6.54

6.33

4.32

The data in the above table indicate main wind directions in months. The north east wind direction accounts for 40  45%, from September to February. Southeast wind
direction accounts for 52  68% from March to August. The northwest wind direction is
also important, accounting for 19  27%, from October to April. Therefore, when
selecting site, the attention should be paid so that after installation, wind turbines can
catch wind from all above three directions.
Other than in mainland, on island day, wind is steadier, however, it is weakest at time
after sunset.
Based on data of monthly and yearly average wind speed at height of 12m measured at
meteorological station, we can calculate monthly and yearly average wind speed at

height of 50m by using the following formula:

V1/Vo = (H1/Ho)n
Where:

V1/Vo = (H1/Ho)n
V1 : wind speed at height of H1 (height at which wind turbine is located)
Vo: wind speed at height of Ho (Ho = 12 m at meteorological station)
N: exponent ( =0.2  0.4) depends on topographical conditions of wind turbine site (on
Ly Son Island, if site is selected in the field with obstacles lower than 2m, n can be
higher than 0.3)
Energy features must be considered as follows:
If Vi is wind speed measured at even time intervals (hourly or every 30, 20, 10
minutes…) in time duration t, the average wind speed in t duration is:
Vat=nVi/n (m/s)

with i=1,2,3 ….n

Energy produced by wind in t time:

10


E=1/2nV3i

(W/m2)

Where :
E- energy density (W/m2)


air density (kg/m3)

Vi Wind speed at measurement(m/s)
n(nVi/n)3 nV3i
Equal sign happens only when Vi= constant. That means actual wind energy is always
higher than wind energy at average wind speed.
K=nV3i/n(nVi/n)3


K

or

V

3

f (v )dv

0





 V . f (v)dv 


0



3

K is energy coefficient. It indicates how actual wind energy is bigger than wind energy
calculated at average wind speed.
K is calculated for 28 meteorological stations throughout the country.
Table 5.2. K coefficients of some meteorological stations
No

Station

K

No

Station

K

1

Hue

4.0

4

Quy Nhon

2.9

2

Cua Tung

3.0

5

Nha Trang

2.8

3

Con Son

2.9

6

Hoang Sa

2.1



Frequency of wind speed

In order to exactly assess wind energy and electricity generated by wind turbinegenerator, it needs to determine frequency of wind speed classes. Therefore, occurrence
frequency of wind speed class or function of wind speed distribution is very important.
For wind distribution as in our country, Weibull equation is good for series of
experimental data. Weibull function has two basic parameters – parameter of
distribution size of average wind speed and parameter for distribution form, non-

11


dimension in the range of 0.7-2.3 depending on areas. For inlands it is higher than that
for inland but less than 2.
Table 5.3. Occurrence frequency of wind class at LySon meteorological station
V(m/s)

<3

Frequency (%) 35.8

4

5

6

7

8

>8

3.7

23.7

3

4.4

11.9

17.5

Weibull equation for wind speed:


f (v ) 


V







 1


. exp  



V










 with V  0,   0 ,   0


Final moment estimation method can be used for calculation of parameters  and  with
simpler formula:
E=1/23 (1+3/) gamma function ()
Average annual density (W/m2)
E=1/23 (1+3/)
or E=1/2nV3i
where  : average density of air (kg/m3)
If variation of  is ignored. Wind energy density depends on exponent 3 of wind speed,
therefore, it varies daily and yearly as wind speed but at bigger amplitude.
Wind turbines have different working characteristics. Each type has different starting
speed (Vkd). When V> Vkd, electricity generated by wind generator increases
proportionally with V3 until V>Vdc (regulated speed) when automatic regulator actuates
(usually by turning plate an angle in order to reduce action of wind) to maintain
capacity and rotor rotation stable. If wind speed increases to V c (max. permissible wind

speed), regulator will stop turbine.
Average electricity produced by a wind- turbine generator is:
Vc
 Vdc 3

3

P 1 / 2  V f (v)dv  Vdc f (v)dv 
V

VVc
 kd


12


Resources loss:
Vc

 Vkd 3

3
3
3

P 1 / 2  V f (v)dv  Vdc (V  Vdc ) f (v)dv  V 3 f (v)dv 
 0

VVc

Vc



Resource loss is an amount of unused wind energy portion due to working
characteristics of wind turbine (it may be different for each type of turbine)


Calculation of monthly, yearly wind electricity production:
Table 5.4. : Wind energy potential of LySon island district:
Month

1

2

3

4

5

6

7

8

9

10

11

12

V(m/s)

7.8

7.5

7.6

6.8

5.3

4.7

4.5

5

5.4

8.4

10

9.9

E(w/m2)

561

450

496

351

213

125

131

160

280

711

954

897

P(MWh) Wind
turbine W-2920

71

68

69

57

36

26

24

30

39

78

105

104

Parameter

The following table presents average monthly electricity generated by 3 wind-turbines
of Fuhslaender, Lagerwey, W-2920/ 250 kW with the same capacity, e.g.250kW, which
was calculated by climate center of Hydro Meteorology Institute.

Table 5.5.: Average monthly and yearly electricity generation at the height of 50m
Month

1

2

3

4

5

6

7

8

9

10

11

12

Wind turbine

Whole

year

W2920

71

68

69

57

36

26

24

30

39

78

105

104

707

Fuhslaender

78

75

76

63

40

29

27

33

43

86

116

115

781

Lagerwey

75

72

73

60

38

27

25

32

41

82

111

110

746

These three types of wind turbine have the same capacity (250 kW) but different wind
swept area. Turbine of Fuhslaender can generate maximal capacity of 320 kW, without
capacity regulation at level of 250 kW therefore it can use wind energy at wind speeds
from 12 m/s to 22 m/s which cannot be used by other wind turbines.

If using three wind turbine- generators Fuhslaender, annual average electricity
production is 3x781 =2443 MWh in stage I (up to 2005), and 4686 MWh in stage II (up
to 2010). However, these amounts are not commercial electricity because:
-

Its portion is used for running equipment (motors of control, regulation
systems, monitors, etc.)

-

A portion is lost because of no load or low load. Loss rate depends on local
socio-economic development.

13




System loss.

Back- up electric generator

a) Selection of capacity of back-up generator
In order to ensure supplying electricity to consumers during the time when wind is too
weak or calm, it needs back-up electric generator. At present, many wind turbine
manufacturers recommend using diesel generator as hot back-up generator. Capacity of
diesel generator is determined based on electricity demand and electricity production of
wind turbines.
According to table of monthly average electricity production of wind turbine
Fuhslaender- 250 kW as presented above, electricity generated by 3 and 6 turbines in

2005 and 2010 respectively are as follows:
Table 5.6. Electricity production of three and six wind turbine generators
Fuhslaender 250 kW in 2005 and 2010 respectively
Unit: kWh

Month

Fuhrlaender
(250kW)

2005
(3x250 kW)

2010 (6x250
kW)

1
2
3
4
5
6
7
8
9
10
11
12

78

75
76
63
40
29
27
33
43
86
116
115

234
225
228
189
120
87
81
99
129
258
348
345

468
450
456
378
240

174
162
198
258
516
696
690

Whole year

781

2343

4686

Total electricity demand on the island is 1980 MWh in 2005, 3896 MWh in 2010.
Therefore, average yearly electricity production of 3 and 6 wind turbines Fuhslaender
(250kW) in 2005 and 2010 respectively is enough for demand. However, because wind
is not evenly distributed in all months of the year, therefore in May, June, July, August

14


and September generated electricity is not enough for demand. This insufficient
electricity amount will be covered by diesel power generators.
Table 5.7. Electricity demand generated by diesel power generator on big island.

Electricity generated by Power demand by
month (kW)

Month wind turbine-generator

Required electricity
production (monthly
average) (kWh)

2005

2010

2005

2010

2005

2010

1
2
3
4
5
6
7
8
9
10
11
12

234000
225000
228000
189000
120000
87000
81000
99000
129000
258000
348000
345000

468000
450000
456000
378000
240000
174000
162000
198000
258000
516000
696000
690000

790
820
846

850
787
865
880
863
833
850
811
828

1567
1626
1678
1686
1560
1715
1745
1712
1652
1686
1608
1641

154771
160625
165747
166479
154039
169406
172333

169040
163186
166479
158795
162088

304291
315801
325872
327311
302853
333066
338821
332347
320837
327311
312204
318679

Total

2343000

4686000

880

1745

1962990

Electricity shortageto
becovered by diesel
power generator
(kWh)
2005

2010

34039
82406
91333
70040
34186

62853
159066
176821
134347
62837

3859392 312004

595924

In 2005, electricity generated by diesel generator will be about 312 MWh, of which 91.3
MWh in July (max.) corresponding to power demand of 380 kW (operation time of
diesel generator is 8 hours per day)
In 2010, electricity generated by diesel is about 595 MWh, of which 176.8 MWh in July
(max) corresponding to power demand of 737 kW (operation time of diesel generator is

8 hours per day).
At present, one diesel generator 1x380 KVA can generate only 210 kW and its operation
is not stable, therefore by 2005 a new diesel generator needs to be added. Existing diesel
generator station is 650 m from anticipated site of wind turbine. This station has been
designed for installation of second diesel generator with capacity at 400 kVA. Therefore
it is recommended to install a diesel generator station on the island.
Considering operation characteristics of diesel generator and wind turbine, features of
existing diesel generator station and available diesel generator in markets, installation of
one back up 400 kVA diesel power generator is recommended. In the period up to 2010,
required back-up capacity is 740 kW, therefore, by then this diesel power station should
be added with one more 400 kVA diesel power station should be added with one more
400 kVA diesel generator.

15


Operation of wind turbine and back-up diesel power generator: wind turbine can start at
wind speed of 3 m/s (wind of second class). When wind speed increases, electricity
generated also increases.
Wind turbine has regulator which adjust position of regulating small plates in order to
generate amount of electricity matching the loads.
In case wind is too weak or calm, the automatic transfer system (ATS) will start back-up
diesel generator, regulate its electricity generation in order to meet demand.
In case wind is too strong, wind turbine will automatically turn its direction and is selfbraked and protected.
Operation conditions are automatically controlled by computerized program, duty
officers working with wind turbine and diesel generator is also used together with
control and distribution house of existing diesel power station installed with equipment
suitable to modern technology of wind turbine. Automatic transfer system (ATS) is
located at diesel power station, control signal from wind turbine is transmitted to control
place by cable line.

5.2. Necessity Of Project Construction
Ly Son is an island district far from mainland with important economic and defense
position. People are living on the island since hundred years ago. The island has good
conditions for permanent inhabitation with agriculture and fishery. In order to develop
Ly Son to be strong island district, contributing in economic development of Quang
Ngai province, the first issue should be solved is electricity supply for the island district.
Electricity is primary need for development of home crafts industry and other sectors
such as agriculture, fishery, services … The electricity also contributes in increasing
living standards for people.
At present, on Island, there is diesel power unit. But this power resource has high
electricity production price, therefore, it makes difficulty for power sector's operation.
On the other hand, existing power diesel generator with capacity of only 320 kW is not
enough for electricity demand. The wind potential of Ly Son Island is relatively good,
therefore, using wind energy for generating electricity is realistic and necessary because
wind is renewable energy resource infinite, clean, not making environmental pollution.
Using wind energy will save fossil fuels such as anthracite, oil and gas which become
exhausted.

5.3. Objective, Scope of Study and Outputs to be
Gained from The Project.

16


With this project, apart from getting one wind power generating resource, the following
targets are also gained :
-

Determining whether application of wind turbines is suitable and bringing

economic effectiveness in Vietnam.

-

Determining suitable unit capacity of wind turbine.

-

Accessing to new technologies for using wind energy for electricity generation.

-

Using abundant natural energy resource in our country in order to save fossil
energy resources as well as contributing in protection of ecological environment.

5.4. Reduction of Hunger and Poverty
At present, the share of hunger and poverty is relatively high. In the whole district, 50%
of households has access to electricity but there is no electricity provided for
production. The diesel power generators have small capacity, only enough for
residential demand of haft population of the island district. On the other hand, electricity
supplied from diesel power generators has high production costs, therefore, electricity
price at group meters is high (about VND 1500 / kWh) and household's electricity
consumption is low (about 12 kWh / household / month).
When this project is in operation, it will improve life conditions for rural areas of island
district and it is anticipated that by 2005 about 85% of households will be able to use
electricity and 95% of households by 2010. Using wind electricity with price lower than
diesel electricity together with upgrading power network from now to 2005 and 2010
will make increased electricity demand of households. Process of rural electrification
and development of sectors will make life of people changed. Income of inhabitants will
increase. Households will buy more electric appliances for living purposes as well as for

production. Life quality of inhabitants will be increased. Share of hunger and poverty
will be reduced. It is anticipated that in 2005 the hungry households will be eliminated
and 70% of poor households are reduced.

5.5. Technology Transfer
5.5.1. Wind Generator Turbine
Wind Generator Turbine is an equipment which transforms wind energy into electric
energy. In areas with good wind conditions, this equipment works very effectively,
producing cheap electricity. For areas without national power grid and good wind
potential, the political, social and economic benefits will be brought in. For areas with
national power grid and good wind conditions, the grid connected wind power projects

17


will operate economically. Apart from that, the wind power equipment also contribute in
environmental protection because this is a clean energy resource.
The large wind turbines are manufactured in many countries on the world and fall into
the following categories :
-

Small size : 1-50 kW with rotor diameter of 5-16 m

-

Medium size : > 50 - 500 kW with rotor diameter from > 16 m to 45 m.

-

Large size : > 500 kW to 5000 kW with rotor diameter from > 45 m to 130 m.

Well known large wind turbine manufacturers on the world are : VETAS,
BONUS, NEG MICON, NORDEX, ENERCON, ZOND, WIND WORLD,
WINDMASTER, GAMESA, MADE… Their products are manufactured with modern
technologies and in accordance with European and International standards.
The main indicators showing advantages of large capacity wind turbines and feasibility
of project with these equipment are :
-

Power curve of wind turbine is suitable to wind conditions in the project site.

-

Reasonable price of equipment

-

Convenience in installation and maintenance

-

Equipment operating well in the environmental conditions of installation area.

-

Operation is safe and exact

-

Operation noise is within acceptable limits

Each of the above mentioned well known equipment manufacturers can meet most
above indicators. One thing must be considered is price and equipment size that must be
suitable to conditions for transportation and installation, erection.
Based on capability of port in terms of allowable loads, size of equipment serving for
installation, erection such as crane to be brought to the island, the size of wind turbine
will be suitably selected for the project.
5.5.2. General introduction and specifications of wind turbine Fuhrleander 250 kW
Type : 3 blade rotor with pitch control, up wind
Manufacturer : Fuhrleander GMbH
Anf der hobe 4 56477 waigandshain
FRG

18


Specifications
Cut-in wind speed

3 m/s

Cut-out wind speed

25 m/s

Withstand wind speed

67 m/s

Life span of wind generator - turbine

25 years

Tip speed

60 m/s

Rotor :
- 3 blades, pitch control, up-wind, self-starting
- Diameter : 30.7m
- Swept area : 740 m2
- Rotation speed : 39 rpm (corresponding to 250 kW)

- Max. tip speed : 60 m/s
5.5.3. Information of outputs of the project
The wind farm consists of some wind generator turbines. As mentioned above, in order
to have convenience for equipment transportation and installation, wind turbines are
selected with capacity of 250 kW each.
Stage I (2003-2005) :
Installing three wind turbines, each has capacity of 250 KW and one back-up diesel
generator 400 KVA
Annual average electricity production : 2443 MWh
Stage II (2005-2010) :
Adding three wind turbines, each has capacity of 250 KW and one back-up diesel
generator 400 KVA
Annual average electricity production : 4686 MWh

VI. Project Implementation Plan
-

Preparation of PFS report, approval : 2003

-

Survey, investigation of wind resource : 2004

-

Preparation of FS report, approval : 2004

19


-

Design, construction, installation of three wind turbines and one diesel generator
: 2005

-

Starting operation : 2006

-

Adding three wind turbines and one diesel generator : 2008

-

Ending operation : 2033

VII Contribution To Sustainable Development
7.1. Benefits brought in for economy, society and
Environment
* For economy, society :
Ly Son Island still has many difficulties, not yet developed economy due to lack of
electricity. When having been completed, the project will supply 1500 kW for electricity
demand for Ly Son island district. This will promote economic development, ensuring
socio-economic targets set out by the island district such as GDP growth rate of 8% in
2005 and 10% in 2010. The wind farm will help solve economic difficulty of the island
district. Wind electricity will have cost much lower than electricity produced by using
other fuels. The sectors using electricity such as industry handicrafts, trade, services will
be developed, of which sea-based economic sector is pioneering, combining with
processing services for fishing. The development of sectors will create new jobs for
laborers, increasing income for people, eliminating hunger and alleviating poverty,
contributing in stable economic sustainable development, improving rural areas,
strengthening defense security.
* For environment
Using wind as a clean energy resource available in the nature will not make
environmental pollution, will have effectiveness in keeping atmosphere clean. On the
contrary, using other energy resources such as coal, oil, will produce significant gas
emissions, causing unbalanced ecological environment. Therefore wind power project
will contribute in sustainable development and protection of environment for this sea
area.

7.2. Other Effects of The Project
With low electricity price, the project will encourage households to use electricity,
leading to increase of electricity demand. Therefore, on one hand, the project makes
culture and society developed and on the other, it effects economic sectors, especially
power sector in re-balancing electricity demand - supply.

20


The project also promotes development of clean technologies especially for sector
manufacturing machine and equipment.
Besides, this kind of project can be duplicated in many other areas, especially in coastal
areas where wind energy is abundant.

VIII. Calculation Of Amount Of Reduced Green House Gas
Emission Due To Replacement Of Old Diesel Power
Generators With Wind Power Units.
Wind turbine generators are clean power resources, no pollutant emission because they
don’t use fossil fuel to operate.
In order to calculate emissions to be reduced when using wind for electricity generation
we will compare the case of wind turbines with the case of using old diesel power
generators without wind power project to supply electricity for Ly Son island district.
1. Rate of diesel oil (DO) consumption of old Diesel generators ( based on data of
Can Tho thermal power plant)
B= 260 g/kWh
2. The amount of DO consumed per year (kg) if there is no wind turbine
generators:
B= bxE
Among which E is electricity production per year (kWh)
Heat value of DO : 11000 kcal/kg
Equivalent heat value (OE) : 10000 kcal/kg
The amount of DO consumed per year (unit: TOE) = bx11000/1000000
3. Emission coefficients of DO
-

CO2 : 3150 kg/ TOE

-

SO2 : 6.1 kg/ TOE

-

Nox : 3.324 kg/ TOE

Table 8.1. Calculation of GHG emission reduced by using wind turbines replaced for
diesel generators

21


Amount of CO2 , SO2, NOx to be reduced over 25 year life-time of the project is
Electricity
Amount of
Amount of Amount Amount Amount
produced by
DO
DO
of CO2 of SO2 of NOx
Year
wind turbine
consumption consumption reduced reduced reduced
(kWh)
(kg)
(TOE)
(tons)

(tons)
(tons)
2343000
609180
670.1 2110.81
4.09
2.23
2006
2343000
609180
670.1
2110.81
4.09
2.23
2007
2343000
609180
670.1 2110.81
4.09
2.23
2008
2343000
609180
670.1 2110.81
4.09
2.23
2009
4686000
1218360
1340.2 4221.62

8.18
4.45
2010
4686000
1218360
1340.2 4221.62
8.18
4.45
2011
4686000
1218360
1340.2 4221.62
8.18
4.45
2012
4686000
1218360
1340.2 4221.62
8.18
4.45
2013
4686000
1218360
1340.2 4221.62
8.18
4.45
2014
4686000
1218360
1340.2 4221.62

8.18
4.45
2015
4686000
1218360
1340.2 4221.62
8.18
4.45
2016
4686000
1218360
1340.2 4221.62
8.18
4.45
2017
4686000
1218360
1340.2 4221.62
8.18
4.45
2018
4686000
1218360
1340.2 4221.62
8.18
4.45
2019
4686000
1218360
1340.2 4221.62

8.18
4.45
2020
4686000
1218360
1340.2 4221.62
8.18
4.45
2021
4686000
1218360
1340.2 4221.62
8.18
4.45
2022
4686000
1218360
1340.2
4221.62
8.18
4.45
2023
4686000
1218360
1340.2 4221.62
8.18
4.45
2024
4686000
1218360

1340.2 4221.62
8.18
4.45
2025
4686000
1218360
1340.2 4221.62
8.18
4.45
2026
4686000
1218360
1340.2 4221.62
8.18
4.45
2027
4686000
1218360
1340.2 4221.62
8.18
4.45
2028
4686000
1218360
1340.2 4221.62
8.18
4.45
2029
4686000
1218360

1340.2 4221.62
8.18
4.45
2030
107778000
28022280
97097.2 , 188 and 102.46 tons respectively.
Total

30824.508 97097.2 188.029 102.461

IX. Project Financial Analysis
9.1. Calculation of Total Investment Cost
9.1.1. Legal Documents Used for Financial Analysis
-

Works to be done and some unit costs based on results of survey at Ly Son
island district, Quang Ngai province.

-

Project management costs according to the Circular No. 08/TT-BXD dated
16/11/1999 by Ministry of Construction.

22


-

Unit costs of evaluation and construction consultancy according to the Decision

No. 15/2001/QD-BXD dated 20/7/2000 by Minister of Construction.

-

Project design costs according to the Decision No. 12/2001/QD-BXD dated
20/7/2001 issued by Minister of Construction.

-

Circular No. 137/1999/TTLT-BTC dated 19/11/1999 by Ministry of Finance on
guideline for construction project insurance.

-

Unit costs of equipment and electric materials of foreign and domestic
manufacturers.

-

Guideline on preparation of cost estimates, total cost estimate for basic
construction power projects No. 2281/EVN-KTDT dated 25/05/2001 by
Electricity of Vietnam.

-

Decree No. 22/1998 /ND-CP dated 24/4/1998 by the Government on
compensation when the government uses land for purposes of defense, security,
national and public benefits.

-

Costs of preparation of procedures for getting land, construction license and land
compensation according to paper No. 1307/BXD-VKT dated 29/08/1998.

-

Format of PFS report prepared by PREGA team of ADB

-

Related papers in force.

-

Exchange rate : US$ 1 = VND 15200

9.1.2. Components of Investment Costs
Total investment cost of the project: US$ 2 524 400
of which: Foreign currency : US$ 1 521 900
Local currency : US$ 1 002 500
Foreign currency : for equipment and foreign experts for training.
-

Local currency : for installation + construction costs and other costs.

Main costs of investment of the project are :
-

Equipment : US$ 1 545 700

-

Installation, construction : US$ 637 100

-

Other costs (including reserve) : US$ 361 600

Investment stages of the project:
-

Stage 1 (before 2005) : US$ 1 472 000

23


-

Stage 2 ( from 2005 to 2010) : US$1 052 000

Table 9.1. Aggregate Table Of Investment Costs For Wind Power Project For Ly Son
Island District

Unit : US$
No

Cost Items

Value
before tax

(1000 USD)

VAT
VAT rate
(1000 US$)

Value after
VAT (1000
US$)

I

Construction- Installation costs

637.1

30.87

668.0

I-1

Main construction - installation
costs

617.4

30.8
7

648.2

Cost of installation of wind1
turbine and generator

301.4

5%

15.07

316.5

Cost of installation of Diesel
2
generator and step up transformer

13.2

5%

0.66

13.8

Cost of construction of medium3
voltage line

136.6

5%

6.83

143.5

Cost of construction of low4
voltage line

143.1

5%

7.15

150.2

3.3

5%

0.16

3.5

19.7

5%

0.99

20.7

Cost of experimenting, correcting
5
distribution line
Cost of expansion of control6
building
I-2

Other construction- installation
costs

19.7

19.7

II Equipment costs

1545.7

8.19

1553.9

II-1 Imported equipment cost

1515.3

6.67

1522.0

1Cost of wind turbine generator
Cost of diesel generator and step2
up transformer
II-2 Domestic equipment cost
Cost of equipment for distribution
1
transformer station
2Cost of equipment for cable-line

1382.0
133.4

1382.0
5%

30.4

6.67

140.0

1.52

31.9

30.2

5%

1.51

31.7

0.2

5%

0.01

0.2

24


No

Cost Items

III Other costs
III1

Cost in pre-investment stage

1Feasibility study and report

VAT
VAT rate

(1000 US$)

Value after
VAT (1000
US$)

112.1

7.45

119.5

18.8

1.09

19.9

14.7

5%

0.74

15.5

Cost of examining and revising
2
FS report

0.6

5%

0.03

0.6

Investigating and collecting
3
meteorological data

3.3

10%

0.33

3.6

Fee of examining and revising FS
4
report

0.3

III2

Value
before tax

(1000 USD)

Cost in investment stage

83.1

1Cost of construction start

1.3

2Cost of land compensation

0.3

10%

6.36

89.4

0.13

1.4

13.2

13.2

Cost of implementing of land
3

compensation

3.3

3.3

Cost of investigating and
4
collecting meteorological data

5.3

10%

0.53

5.8

21.5

10%

2.15

23.6

Cost of examining and revising
6
technical design

0.8

10%

0.08

0.8

Cost of examining and revising
7
cost estimation

0.7

10%

0.07

0.7

Cost of tender preparation and
8
evaluation

2.7

10%

0.27

3.0

9Cost of construction monitoring

6.1

10%

0.61

6.7

4.9

10%

0.49

5.4

12.7

10%

1.27

14.0

5Design cost

10Cost of installation monitoring
Other costs for project
11
management board
Cost of examining and revising
12
project quality

1.3

13Cost of project insurance

7.6

25

1.3
10%

0.76

8.4