Wind Energy Development in ASEAN

ASEAN countries with commercially exploitable wind resources include Cambodia, Indonesia, Lao PDR, the Philippines, Thailand and Vietnam. Alternative methods of energy production and attraction are a very important direction of development of our businesses and society, in cheap article writing from https://essaysprofessors.com/cheap-article-writing-service.html there are many recommendations and useful points for describing characteristics and prospects. The wind resource potential and current utilization in the region are summarized in Table 2.

Table 2. Wind Resource Potential and Utilization in ASEAN

Sources: Cambodia - TrueWind Solutions, LLC  (2001); Indonesia � Ministry of Energy and Mineral Resources (2004); Lao PDR - TrueWind Solutions, LLC  (2001); Philippines � Department of Energy, Wind Power Kit (2004) and Philippine Energy Plan (2005); Thailand � DEDE (2004) and TrueWind Solutions, LLC  (2001); Vietnam � TrueWind Solutions, LLC  (2001).

Cambodia

The Cambodian Ministry of Industry, Mines and Energy (MIME) has identified the country�s coastal areas to have the highest potential for wind energy development.

The current activities involving wind power in Cambodia are the following:

1. Telecommunications.  One telephone company has installed 400 W turbines in 5 sites at Koh Kong Province with total capacity of 8 kW.
2. Public infrastructure.  Several non-governmental organizations have installed a total capacity of 5 kW in schools and health centers.  These are mainly intended for water pumping using hybrid systems (solar and wind).
3. Individual households.  A number of individual households and farms have installed mechanical wind pumps for water pumping.
4. Battery charging stations.  Six battery charging stations were installed in Takeo Province powered by solar and wind hybrid system.  Each system has an installed capacity of 508 W consisting of 400 W wind turbine and 108 W solar PV module.
   
   

Major barriers that impede the development of wind power generation in Cambodia are the following: lack of awareness and political support; lack of policy and legal framework; lack of resource potential information; lack of access to financing; and lack of institutional capacity for planning, implementation and maintenance.

Philippines

The Philippines is the most aggressive country in ASEAN in terms of wind power development.  The government issued an executive order in 1997, the EO 462, which provides incentives and permits private sector participation in wind energy development in the country (this was later amended by EO 232 issued 2000).  After the launching of the Renewable Energy Policy Framework in 1983, which targets the development of identified sites, the Philippine Department of Energy organized a trade mission to Europe in 1983; launched the Wind Power Investment Kit in June 2004; organized the Wind Power Summit in December 2004; and undertook the Wind Contracting Round in March 2005.

The incentives embodied in EO 232 are the following:

• Payment of production bonus shall be applied only after the project has fully recovered its pre-operating expenses.
• Developers shall be allowed to charge cost of assessment, field verification, and feasibility studies of other sites to its current commercial projects.
• The government facilitates developers in obtaining fiscal and non-fiscal incentives from the Board of Investment (BOI), and in securing access to lands and offshore areas.

The BOI incentives include the following:

• Income tax holiday.  6 years for projects with pioneer status and 4 years for non-pioneer status.
• Additional deduction for labor expense.  To be availed within 5 years of registration, additional deduction from taxable income 50% of the wages for direct labor of skilled and unskilled workers.
• Unrestricted use of consigned equipment.
• Employment of foreign nationals.
• Additional deduction in taxable income for necessary and major infrastructure works if the project is located in less developed areas or areas with deficient infrastructure.

During the launching of the Wind Energy Kit, 16 potential wind sites were offered to the private sector with a total capacity of 345 MW.  At the First Philippine Wind Power Contracting Round, the government granted pre-commercial contracts to develop 5 sites in the country with a total capacity of 85 MW (Philippine Hybrid Energy systems Inc. � 30 MW; Trans-Asia Renewable Energy Corporation � 30 MW; and San Carlos Wind Power Corporation � 25 MW).

Figure 1. Wind Sites Promoted for Development by the Philippine Department of Energy

The Philippine National Oil Company � Energy Development Corporation (PNOC-EDC) is planning to develop a 40 MW wind farm.  The project is to be funded from ODA loan from the Japanese government through the Japan Bank for International Development.

The trade missions to Europe generated funding commitments from the governments of Germany (�40 million) and Spain (US$ 105 million) for the development of several potential sites in the country.

The major milestones in the Philippines are the following:

• Commissioning of the first wind-diesel hybrid power plant (3 x 60 kW wind turbine generators and 2 x 500 kW diesel generators) located in Batan Island in Batanes Province in August 2004.  This project is a joint initiative of the Department of Energy, National Power Corporation, Department of Science and Technology, First Philippine Energy Corporation and the provincial government of Batanes.
• Commissioning of the first and the largest wind farm in Southeast Asia in April 2005 � the 25 MW Northwind Power Development Corporation Project.  The Company is a joint venture between Danish and Filipino investors.

Sources: Philippine Energy Plan 2005 Update; Philippine Department of Energy.

Thailand

The Electricity Generating Authority of Thailand (EGAT) had taken the lead role in demonstrating electricity generation from wind.  In the beginning, EGAT cooperated with various local institutions to demonstrate small-scale wind turbine generation ranging from 0.2 to 1.0 kW.  At the later stage, EGAT installed several small-scale wind turbines at Leam Promtep, in Phuket Island.  Two American manufactured 10 kW turbines were installed in 1993 and used for battery charging stations.  In 1996, one unit of Nordtank�s 150 kW was installed and connected to the local distribution network.  EGAT aims to gain experience from this demonstration project on the selection of appropriate types of wind turbine generator.  Also the information collected from the project, the technical skill developed, and the problems encountered during the installation would be useful for future investments on larger wind turbines.

Currently, the Department of Alternative Energy Development and Efficiency (DEDE) of the Ministry of Energy is undertaking wind measurements and policy studies to promote wind energy investments in the country.  Wind energy has been identified as one of the sources to meet the renewable energy target of 8% and to qualify for the renewable energy portfolio standards (RPS) of 6% in 2011.  Various incentives are being studied by DEDE.

Sources: EGAT, DEDE.

Vietnam

Vietnam�s Institute of Energy (IE) has identified various sites along the coastal line and islands wind conditions suitable for construction of large farms wind farms, which could be connected to the national power grid.  The country is poised for major wind power development in the near future.

Since the 1980s, IE was entrusted by the Ministry of Electricity (now Ministry of Industry) to review the implementation of wind turbines for power generation in islands and remote grid connected areas.  IE and several research institutes (University of Hanoi, Institute of Mechanical Design, Research Center for Thermal Equipment and Renewable Energy) had developed, manufactured and installed low capacity turbines in various villages and households.

Some of the recent wind power developments are the following:

• 15 kW solar PV-wind power hybrid system in one of the minorities� village with 40 households.  The project was implemented by IE with grant from Tohuku Company of Japan.
• 800 kW wind power generator in Bach Long Island financed completely by the Government of Vietnam using Spanish wind technology (Made Technology S.A.)

The main incentive for wind power investors in Vietnam is the 100% tax exemption in the importation of wind power technology and equipment.

Future wind energy development in the country includes the following:

• 2 MW wind power installation in Ly Son Island.  The feasibility study has been completed by the Institute of Energy.  EVN is the main project investor.
• 15 MW wind farm in Binh Dinh Province.  The tender for equipment supply is currently open.  The feasibility study was prepared by Phuong Mai company.
• Wind Power Project in Ninh Tuan Province funded by the Indian Government and Electricity of Vietnam.  IE completed the feasibility study.
• 84 MW Wind Power Project in Phuong Mai.  The main investor is Grabowski Renewable Energy Company no. 1 Ltd.
• 2.5 MW wind project in Phu Quoc Island.
• 15 MW wind farm in Phu Yen Province.  The project is owned by VINACONEX.  IE prepared the feasibility study.
• 2.5 MW Wind Project in Co Dao Island.  IE is currently undertaking the feasibility study.

Source: Institute of Energy

ASEAN�s First Wind Farm

ASEAN�s first wind farm was inaugurated last June 2005.  The US$ 47.6 million wind farm is owned by the Northwind Power Development Corporation - a joint venture of Filipino and Danish investors.  The project comprises 15 units of 1.65 MW Vestas turbines arranged in single row along the coast of Bangui Bay in Ilocos Norte Philippines.  The project includes the construction of a 50 km 69 kV overhead transmission line to deliver the the power to the switchyard of the Ilocos Norte Electric Cooperative (INEC), which has the exclusive franchise to distribute electricity in the province.

Northwind signed an Electric Sales Agreement (ESA) with INEC in July 2002.  The project is estimated to generate 74.48 GWh annually, which is 40% of the electricity needs of Ilocos Norte Province in 2003.

The Danish government through Danida provided a capital of US$11.2 million to seed the project and another US$8 million in grants for its completion.  An export credit facility of US$29.35 million has been arranged under a loan agreement between the Northwind Power Development Corp., the Trade and Investment Development Corp. of the Philippines, ABN-AMRO bank NV and the Danish Export Credit Agency, payable in 10 years with zero interest rate.  The Philippine Export-Import Agency has agreed to guarantee up to US$28.8 million of the total project cost.

The incentives granted to the project by the Board of Investment are income tax holidays for 6 years and reduced import tax of 1% (instead of 3%) for capital equipment, spare parts and accessories.  Northwind Power Development Corp had also signed with the World Bank an emission reduction purchase agreement (ERPA) for the purchase of carbon emission reductions credits generated by the project.

Another 15 wind turbines will be added in the second phase of the project.

Source: Wind Force 12 (June 2005)

Figure 2. 25 MW Northwind Project Under Construction (March 2005).  Picture copyright � Per N�rgaard, Risoe National Laboratory