Vietnamese investors say they can only make a profit if windpower is bought at more than 17 US cents per kwh by 2015. But foreign investors have not shown interest in such purchases.

A Ministry of Industry and Trade’s (MOIT) report showed that 50 windpower projects have been registered over the last three years with the total designed capacity of 4,876 MW.

However, only three wind power plants are operational, Binh Thuan, Phu Quy and Bac Lieu. The high investment rate and the low selling price cannot persuade investors to inject money into the sector.

It is estimated that a wind power plant using US or European technologies which can satisfy IEC (International Electrotechnical Commission) standards would have an initial cost of $2,250 per kw and production cost of 10.68 cent per kwh.

The costs would be lower for plants using Chinese technology - $1,700 per kw and 8.6 cent per kwh, respectively.

According to the Binh Thuan Wind Power Association, in order to make a profit with the currently fixed 7.8 cent per kwh price, investors need to borrow money at an interest rate of less than 1.1 percent per annum, which would be impossible.

The association has proposed to the government and relevant ministries as well as branches to devise a roadmap for the windpower price increase, under which the current price of 7.8 cent per kwh would be raised to more than 10 cent by 2015 and more than 12 cent by 2017.

To Hoai Dan, chair of Cong Ly Company, the developer of the wind power plant in Bac Lieu province, said he is hesitant, even though MOIT has accepted to buy power from Cong Ly at 9.8 cents, or VND2,100 per kwh, as the project is on the sea.

He estimates that with the selling price, it would take him 15 years to take back the investment capital.

Nguyen Viet Cuong, president of Phu Cuong Ca Mau Group, the investor of the Soc Trang Plant, also said the suggested price of 9.8 cents is still not “safe” for investors.

He wants the price to be fixed at 12.8 cent, or VND2,700 per kwh for the first 10 years, while the price would be lowered by 10 percent after that period.

Chris Beaufait, president of Vestas Asia Pacific & China, a partner of Phu Cuong in its project in Soc Trang, said that Vestas can provide many different technologies with low installation costs and a high capacity.

However, he said Vestas does not intend to make direct investment in projects, but will only provide technical assistance.