EVN, PVN to pilot offshore wind power projects, Defense Ministry not to do so

State utility Vietnam Electricity (EVN) and state-owned Petrovietnam (PVN) will pilot offshore wind power projects, while the Defense Ministry will not do so due to its incapability, the government has decided.

The government made the conclusion after a recent meeting on offshore wind power wherein it was noted that PVN had already conducted sea survey activities including assessments of wind power potential at locations approved by the Ministry of Natural Resources and Environment.

Meanwhile, EVN was set to explore 4,000 MW offshore wind power plant investment in the Gulf of Tonkin, for which it had submitted a proposal in 2022 to enhance regional energy security.

In 2023, Petrovietnam vice chairman Pham Tien Dung had asserted that while it was not allowed to invest in offshore wind power projects under a Politburo resolution, the oil and gas giant was "strongly capable of doing so".

Now, the government has requested the Ministry of Industry and Trade (MoIT) to collaborate with EVN and PVN on drafting a plan for offshore wind power development, focusing on resolving legal and other issues to facilitate pilot projects.

The draft plan should cover investor selection (with or without bidding), defense-security aspects, ownership of foreign investors, entire project/stake sales, and power production for both domestic and export markets.

The Defense Ministry had already cited limited capacities and expertise for its inability to join the government's pilot scheme for offshore wind development.

The MoIT had last month estimated the potential for offshore wind power development in Vietnam at 512 GW. It had said that this potential resource needed to be tapped to fulfil the country’s carbon-neutral commitment by 2050.

Under the National Power Development Plan VIII (PDP VIII) approved by the government in May 2023, the country aims to develop 6,000 MW of offshore wind power by 2030 and 70,000-91,500 MW by 2050.

Also last month, Deputy Prime Minister Tran Hong Ha had said that Vietnam should refine related mechanisms, policies, and regulations while piloting offshore wind power development.