Special mechanisms needed for offshore wind, LNG-to-power projects in Vietnam

Vietnam’s Ministry of Industry and Trade has supported a request from developers of offshore wind power and LNG-to-power projects for special incentives as the country seeks to speed up its energy transition.

At a meeting at the ministry’s headquarters in Hanoi on Friday, representatives from energy giants PetroVietnam (PVN), Vietnam Electricity (EVN), PVPower, and PVGas stressed the necessity to ask the government and parliament for special policies to remove hurdles facing offshore wind power and LNG-to-power projects.

Such policies will help implement the National Power Development Plan 8 until 2030, widely known as PDP8, approved by the government in May.

Under PDP8, up to 30,420 megawatts (MW) of gas-to-power capacity will be constructed by 2030, of which 75% will come from LNG power. In addition, some 6,000 MW of offshore wind power will be developed by 2030. The two sources will account for around 50% of new capacity during that period.

However, no specific regulations have been adopted for offshore wind power so far.

The Nhon Trach 3 and 4 LNG-fired power projects are expected to become operational in the next two years, but negotiations on power purchasing agreements have stalled. A LNG-to-power project in the southern province of Bac Lieu was given the greenlight in 2020 but has made no progress.

In reality, it takes circa seven to eight years to develop a gas-fired power plant project while six to eight years is needed for the deployment of an offshore wind power project, heard the meeting.