Mechanism to remove difficulties for LNG and offshore wind power projects

Minister of Industry and Trade Nguyen Hong Dien assigned the Electricity and Renewable Energy Department to preside over and coordinate with the Electricity Regulatory Authority, the Department of Oil, Gas and Coal, and the Legal Department, based on reports from units, to synthesize a report to the Government to propose to the National Assembly to issue a Resolution to remove obstacles to current legal regulations in the implementation of gas-fired and offshore wind power projects according to the Power Plan VIII before December 30, 2023.

There will soon be a mechanism to remove difficulties for LNG and offshore wind power projects. Illustration photo: Thanh Tung/VNS

This is an important content in Conclusion 388/TB-BCT of Minister of Industry and Trade Nguyen Hong Dien at the meeting to remove difficulties and obstacles in implementing gas-fired power projects (including domestically exploited gas and LNG) and offshore wind power projects according to Power Plan VIII. This meeting was held on December 15.

Accordingly, the National Assembly needs to have a specific Resolution on gas-fired and offshore wind power projects to implement them in accordance with the schedule of Power Plan VIII. According to Power Plan VIII, from now until 2030, the total additional power capacity from gas-fired power projects (30,424 MW) and offshore wind power projects (6,000 MW) will account for about 50% of the total additional power capacity.

At the same time, developing offshore gas and wind power sources will help Vietnam fulfill its commitment to carbon neutrality by 2050. Gas power projects are flexible, stable baseload power sources that will support wind and solar power projects to ensure security of power supply.

According to the Minister of Industry and Trade, through the review, there are a number of difficulties and obstacles that need to be resolved in the development of offshore gas and wind power projects that are not clearly regulated by current laws.

Specifically, there are three basic problems with LNG power projects: the minimum gas output; the mechanism for transferring gas prices to electricity prices; and the gas purchase mechanism in line with the general trend of the world.

There are four problems with offshore wind power projects, including: the competent authority assigns the sea area, allows or approves organizations to use the sea area to carry out measurement, monitoring, investigation, exploration, and survey activities to serve the establishment of offshore wind power projects.

Up to now, the National Marine Spatial Planning has not been approved, so there is no basis for implementing the Power Planning; Authority to approve investment policies; Market access conditions for foreign investors in the offshore wind power sector.

“Offshore wind and gas power projects need to propose to the National Assembly a specific Resolution to implement them to meet the progress according to the Power Plan VIII. In particular, offshore wind power projects need to be included in the list of important national projects that require specific mechanisms and policies,” the conclusion of the Minister of Industry and Trade stated.

Based on the high consensus at the meeting, the Minister of Industry and Trade assigned Vietnam Electricity Group (EVN), Vietnam Oil and Gas Group (PVN), Vietnam Gas Corporation (PV Gas), and PetroVietnam Power Corporation (PV Power) to urgently review legal regulations and base on the actual implementation situation, difficulties, and obstacles of the projects./.

Thu Tra