Great potential but offshore wind power in Vietnam still stagnates

Workers are maintaining wind turbines at an altitude of nearly 100m above sea level at the Bac Lieu Wind Power Plant project (Vinh Trach Dong commune, Bac Lieu city) - Photo: NGOC HIEN

According to the report of the Ministry of Industry and Trade , the development of offshore wind power is one of the important orientations of the Power Plan 8. In addition to helping realize the energy transition roadmap, the development of offshore wind power also helps Vietnam effectively exploit the huge potential of renewable energy and develop the marine economy.

According to the Ministry of Industry and Trade, Power Plan 8 aims to develop about 6,000 MW of offshore wind power by 2030 and has oriented the development and formation of two inter-regional renewable energy industrial and service centers in areas with great potential such as the North, South Central, and South when conditions permit (mainly offshore wind power).

In addition, by 2050, Vietnam is expected to reach 70,000 MW to 91,000 MW of offshore wind power.

However, the Ministry of Industry and Trade said that Vietnam currently has no offshore wind power projects that have been granted investment policies and assigned to investors for implementation.

At the same time, the approved Power Plan 8 and the implementation plan of Power Plan 7 do not have enough basis to specifically determine the location and capacity of offshore wind power projects.

"Vietnam does not yet have a complete and accurate database on wind speed surveys and wind potential in each region, locality as well as the whole country, current terrain status, and seabed depth," the Ministry of Industry and Trade said.

According to this ministry, many experts believe that the investment rate for offshore wind power is very large, about 2.5 billion USD/1,000 MW and the implementation time is 6-8 years from the beginning of the survey. Therefore, the Ministry of Industry and Trade believes that the offshore wind power capacity target according to Power Plan 8 of 6,000 MW by 2030 is very difficult to achieve in the current context.

Previously, the Ministry of Industry and Trade reported to the Government on the pilot research project on offshore wind power development and analyzed three options for selecting investors for offshore wind power, prioritizing state-owned economic groups to pilot in the first phase.

Currently, many domestic and international investors are proposing to develop offshore wind power projects in sea areas from North to South.

The Singapore Energy Market Authority (EMA) has even given conditional approval to Sembcorp Utilities Pte Ltd (SCU) - a subsidiary of Sembcorp Industries Ltd, to import 1.2 GW of low-carbon electricity from Vietnam to Singapore.

Imported electricity will be sourced from offshore wind power and other potential forms of power generation through cooperation with the Vietnam Petroleum Technical Services Corporation (PTSC).

WB assesses Vietnam has great potential for offshore wind power Vietnam

According to the World Bank (WB), Vietnam's offshore wind power potential is about 600 GW, and this energy source is expected to provide 12% of the country's total electricity output by 2035.

As the WB analysis team said, Vietnam has attracted international attention with its renewable energy plans, but policy delays have caused some potential investors to reconsider their plans.

The Ministry of Industry and Trade is also completing legal documents, creating conditions for domestic and foreign investors to participate, determined to build an offshore wind power industry, making Vietnam a regional offshore wind power center.

Some foreign investors withdraw

Orsted - the world's leading renewable energy group - has decided to stop all offshore wind power investment plans in Vietnam.

At the end of August, the Norwegian state-owned energy group Equinor also confirmed that it had canceled its investment plan in Vietnam’s offshore wind power. At the same time, the company also closed its representative office in Hanoi.

Source: https://tuoitre.vn/tiem-nang-lon-nhung-dien-gio-ngoai-khoi-viet-nam-van-giam-chan-tai-cho-20240910153129561.htm