SOEs are proposed to develop offshore wind power projects. (Photo: VNA)
The Ministry of Industry and Trade (MoIT) has proposed two state-owned energy corporations or military-run units be selected to develop offshore wind power projects, given their available resources and considerable experience in the management and operation of power plants and transmission system, as well as national security issues.
In its proposal to the Government, the MoIT stated that the Vietnam Oil and Gas Group (Petrovietnam) holds certain advantages for implementing offshore wind power projects which have some facilities similar to those of oil and gas projects at sea, helping utilise existing infrastructure and protect the national sovereignty. However, it is necessary to evaluate the move's adherence to the Party’s policy on the business orientation of the firm.
As for the Vietnam Electricity (EVN), which boasts experience in the investment and management of electricity plants and transmission system, the MoIT said that wind power is new in Vietnam, and the development of this type of energy has different requirements from those of the traditional ones.
The MoIT added military-run entities could engage in the scheme. However, the Ministry of National Defence has said that their units lack the capacity and experience in this role. Further clarification is needed after consulting competent ministries.
A recent World Bank study highlights Vietnam’s substantial potential for wind energy, noting that over 39% of the country's area has an average annual wind speed greater than 6 m/s at 65 metres altitude, equivalent to a capacity of 512 GW.
According to the National Power Development Plan for the 2021-2030 period, with a vision to 2050 (PDP VIII), the country aims to develop 6,000 MW of offshore wind power by 2030, and 70,000 - 91,500 MW by 2050. However, the plan lacks specifics regarding the number, capacity, and locations of these projects, as well as the strategies for integrating this power into the national grid.
The MoIT acknowledges that while the private sector has been active in the electricity sector, particularly in traditional power and small-scale solar and wind power projects, offshore wind power presents certain challenges. These include legal complexities and national security concerns, making it unsuitable for pilot investment until these issues are fully assessed.
Meanwhile, it is unfeasible to seek international investors to join the scheme due to bottlenecks in the legal framework, it added./.