State utility EVN cannot implement offshore wind power projects: ministry

By Tri Duc
Sat, October 21, 2023 | 6:56 pm GMT+7

Vietnam’s current legal framework does not allow state utility Vietnam Electricity (EVN) and other domestic companies to implement offshore wind power projects, according to the Ministry of Industry and Trade.

In a draft deployment document for the latest national power development plan (PDP VIII) sent to the Prime Minister recently, the ministry says the current legal framework does not clarify terms related to offshore wind power, the national maritime plan has not yet been approved and details of authorities in charge of granting in-principle approvals for offshore wind power projects are not available.

Initially, the ministry had proposed that Prime Minister Pham Minh Chinh allows EVN and domestic firms to research and survey offshore wind power projects and prepare for implementation upon approval.

An onshore wind power project in Bac Lieu province, Vietnam's Mekong Delta. Photo courtesy of Mekong Discovery.

An onshore wind power project in Bac Lieu province, Vietnam's Mekong Delta. Photo courtesy of Mekong Discovery.

PDP VIII features 21,880 MW of onshore and land-based wind power and 6,000 MW of offshore wind power. Other renewable energy sources mentioned are 2,600 MW of rooftop solar; 2,270 MW of biomass and waste-to-energy; and 29,346 MW of hydropower.

The ministry estimates that Vietnam would need to invest $134.7 billion in power generation and transmission until 2030. The figure includes $57.1 billion for the 2021-2025 period - $48.1 billion for power generation and $9 billion for transmission. In 2026-2030, $71.7 billion would be needed for power generation and $5.9 billion for transmission, or $77.6 billion in total.

In September, Deputy Prime Minister Tran Hong Ha asked that the ministry’s previous draft deployment document for PDP VIII be redone. In his request for redoing the draft plan, the Deputy PM asked the ministry to come up with a pilot mechanism for allowing EVN and qualified domestic businesses to conduct offshore wind power projects.

Vietnam is in a position to attract offshore wind power investments, but failures to provide timely policy support policy can turn investors and suppliers away, the Global Wind Energy Council (GWEC) has cautioned in its “Global Offshore Wind Report 2023” report. The council has also stressed the advantage that Vietnam has in the oil-gas industry being able to transition quickly to offshore wind power.

Petrovietnam has stated that it is not currently allowed to invest in offshore wind power projects under a Politburo resolution, although the state-owned oil and gas group is highly capable of doing so.

"Petrovietnam is capable of all offshore wind power activities, from the beginning to the ending phases. In seabed surveys, hydrogeological tasks, data analysis and research, Petrovietnam is the best in Vietnam, thanks to its experience in working in the sea over the past 60 years," its vice-chairman Pham Tien Dung said.

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