Vietnam’s offshore wind realm remains in a muddle
- Mar 31, 2023 11:57 am GMT
The strategy for renewable energy development being in limbo is holding back offshore wind power prospects in
According to Hien, unresolved policy is now the "greatest hurdle" to offshore wind energy development in
"In addition, the regulations governing the method of investor selection have not been modified effectively," Hien said.
In recent years,
Unfortunate timing has hindered the plans from the start of the decade. In 2020, the La Gan offshore wind farm project, with a potential capacity of 3.5GW, was one of the first large-scale offshore wind power projects to be announced off the coast of
"Offshore wind developers are primarily concerned with initiating the offshore wind sector via a variety of mechanisms. Rapid development and solicitation are the two primary approaches to jumpstarting this business," Hutchinson said.
The draft PDP8 is being presented to the prime minister for review, and it is anticipated that the total wind power capacity will expand from roughly 4,000MW in 2022 to approximately 16,000MW of onshore and nearshore wind and nearly 7GW of offshore wind by 2030.
Using a fast development mechanism, the government may consider selecting a large-scale pilot project or using a particular set of processes for a given amount of capacity (3-4GW) to build projects in a shorter timeframe than typical, Hutchinson said.
This approach will assist projects in overcoming legislative obstacles and achieving a large enough deployment size to lower power production costs. If this option is selected, projects do not need to wait for marine spatial planning or the bidding procedure to be evaluated. The issue, though, is how to choose competent projects and developers.
A bidding method may also be a possibility, with the benefit that the project development process is open, transparent, competitive, and efficient. Yet, based on the experiences of the majority of nations that have applied, adopting this approach takes a long time.
"The legislative environment for offshore wind power growth is complex, including businesses such as oil and gas, maritime, fisheries, and most importantly, national security," Hung said.
Investors are actively monitoring the construction and completion of
"Power purchase agreements are crucial for ensuring capital mobilisation and streamlining the licensing procedure at the national and provincial levels," he added.
GWEC advises developing a 4GW capacity via a staged approach that includes pilot projects, projects selected through a selection process, or a hybrid selection and competition method. It said the government should adopt the roadmap for the commercialisation of offshore wind power by mid-2023 and establish the criteria for pilot projects. The first 1.5GW will be finished by the end of 2028, followed by the subsequent 2.5 GW by the end of 2029.
Simultaneously, pilot selection is the process of defining a set of project auction criteria and auctioning 3GW, with the remainder anticipated to be finished by the end of 2030.
Thang held that competitive projects might be on the grid by 2030 if offshore wind energy is developed step-by-step. He said that GWEC is willing to help the Vietnamese government find potential offshore wind power pilot projects, thereby ensuring that 4GW of offshore wind power would be authorised for financing before 2026.
Developing offshore wind power is a great dual opportunity for
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