Vietnam should quickly fix legal obstacles in licensing offshore wind power projects, the Global Wind Energy Council (GWEC) said.
According to the global trade association, if financial support and policy updates are applicable in mid-2023, Vietnam can connect 7 gigawatts of offshore wind power to the national grid in 2030, meeting targets in the draft power development plan VIII (PDP VIII).
Vietnam has yet to implement any offshore wind projects, and wind power in the country is currently sourced from land-based and nearshore ones, said Bui Vinh Thang, Vietnam country manager at GWEC. Pilot projects can bring insights and attract investors to Vietnam, he said.
As offshore wind power in Vietnam is at its initial stage and takes a long time to develop, the GWEC has recommended Vietnam's government approve the commercialization and requirements for pilot projects totaling 4 GW by mid-2023. Then the first 1.5 GW can complete in end-2028 and 2.5 GW in end-2029, it added.
The GWEC is willing to aid the Gưgovernment in selecting such pilot projects, toward the approval of projects by 2026, Thang said.
The trade association also encouraged the Vietnamese government to soon provide a power price formula to facilitate the sector as power purchase agreements (PPAs) in Vietnam are now only applicable to solar and land-based wind power.
Per the draft PDP VIII, offshore wind power in Vietnam is set to reach a capacity of seven GW in 2030 and 87 megawatts in 2050, accounting for 4.8% and 17.3% of the total generated electricity in 2030 and 2050, respectively.
In order to facilitate implementation of the offshore wind power policy, Vietnam should complete rules related to the sea surface using plan, procedures of sea lease, grant of PPAs, grid connection plan and labor safety, said Mark Leybourne, offshore wind program lead at the World Bank. He added the government should name potential locations for offshore wind power and allow developers to take charge of projects via bidding.