South Korea nearshore wind power plant – Tra Vinh – Photo: REV
On December 12 and 13, Deputy Minister of Industry and Trade Nguyen Hoang Long and Ambassador Julien Guerrier visited Can Tho City and Tra Vinh Province.
Wind power potential
In an interview with Tuoi Tre, Mr. Julien Guerrier said that Vietnam is facing a big challenge in having to simultaneously complete three goals: net-zero emissions before 2050, providing enough energy for a strongly growing economy while keeping energy costs affordable for people and industries.
This task is even more difficult when it is expected that by 2030, Vietnam's electricity production needs will need to double the current demand. For the EU, renewable energy is one of the main solutions to this difficult problem.
“Vietnam has great potential for hydropower and has exploited this energy source well. There is also solar power, wind power and offshore wind power. What Vietnam needs is the right policy system to attract private and state investment,” Mr. Guerrier suggested.
The EU plays a coordinating role in funding from the G7 and international partners. Thanks to that, I see that there are many international investment sources waiting to be poured into Vietnam. Once we have a suitable legal framework, solar and offshore wind power development projects will appear continuously.
In addition, the head of the EU delegation also shared high expectations for Vietnam's wind power potential. According to Mr. Guerrier, with geographical conditions very favorable for the development of onshore and offshore wind power, Vietnam can completely provide enough electricity for domestic demand while supporting neighboring Southeast Asian countries. Realizing that potential, the EU is also investing in building a power grid connecting ASEAN countries.
To realize the above potential, Mr. Guerrier made some specific policy recommendations. First, EVN needs to continue upgrading the grid to ensure the ability to absorb the entire output of renewable energy projects. In addition, foreign investors are also very interested in regulations on exploration rights and exploitation rights when considering wind power projects.
“Vietnam needs a clear mechanism on electricity prices so that investors know at what price they can sell electricity to EVN. The Decree on Direct Power Purchase Agreement (DPPA) approved by the Government in July promises to bring many advantages to attract private sector investors,” said Mr. Guerrier.
Courageous commitment
Sharing with the press, Deputy Minister of Industry and Trade Nguyen Hoang Long said that the commitment to net-zero by 2050 is one of Vietnam's very brave and ambitious commitments to bring the country into a new stage of development. That is green development, clean development, accompanied by energy transition programs that require bold decisions.
Deputy Minister Long shared: “On that path, Vietnam has received support, assistance and companionship from the international community, including the EU. At the end of 2022, Vietnam and the G7 bloc, including the EU and important EU members such as Germany, France, Italy, etc., signed the Just Energy Transition Partnership (JETP) agreement.
Accordingly, G7 countries and partners committed to supporting Vietnam with 15.5 billion USD over a period of 3-5 years to implement key projects in the process of equitable energy transition.
Mr. Long emphasized that the EU has played a leading and coordinating role with Vietnam in the energy transition process. The Ministry of Industry and Trade has developed programs and projects to promptly disburse funding such as ODA, green finance and low-interest finance.
At the same time, technology transfer and renewable energy development projects are also being implemented, making an important contribution to helping Vietnam promote the energy transition process.
For his part, Mr. Guerrier emphasized the desire to expand energy cooperation between Vietnam and the EU. The Ambassador said that he recently signed with the Ministry of Finance an agreement to expand the EU's capital for the Water and Natural Resources Management (WARM) Fund from 20 million euros to 34 million euros ($35.6 million).
“We hope to be able to develop other projects. If Can Tho is interested, we are very willing to discuss with them and with the French Development Agency (AFD) – the unit that is implementing projects in Can Tho for the EU,” Mr. Guerrier affirmed.
Listen to the locals
During the working trip, the delegation of the Ministry of Industry and Trade and the EU visited the rooftop solar power project at the De Heus Can Tho Pangasius Feed Factory. The factory's rooftop solar power system has a capacity of 458kWp, expected to help reduce 470 tons of CO2 per year.
In addition, the delegation also inspected the EU-funded rural electricity project in Dinh Mon commune, Thoi Lai district, Can Tho city and the Korea-Tra Vinh wind power plant (Truong Long Hoa commune, Duyen Hai town, Tra Vinh province).
The delegation also met and worked with the People's Committee of Can Tho City and the People's Committee of Tra Vinh Province. Deputy Minister Nguyen Hoang Long affirmed that the delegation wanted to listen to recommendations and proposals from localities to continue to have projects in the area, while strengthening cooperation and understanding between localities and the EU in the energy sector.
Source: https://tuoitre.vn/dau-tu-nang-luong-quoc-te-dang-doi-do-vao-viet-nam-20241217075809675.htm
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