Enterprize Energy and partner Renewable Energy Global Solutions (REGS), together with PetroVietnam consortium comprising Petroleum Equipment Assembly & Metal Structure (PVC-MS) and VietSovPetro (VSP), MHI-Vestas Offshore Wind (MVOW), and DNV GL signed a series of exclusive Agreements forming an alliance for multi-phased, utility-scale wind developments, offshore Southern Vietnam, including feasibility, environmental, development, financing planning through implementation.
Ian Hatton, Enterprize Energy’s Chairman and Founder Director commented, “Vietnam’s impressive economic growth is driving a need for new energy resources. Government has a very clear determination to meet rising energy demand with substantive growth in the supply of low-carbon, renewable energy”.
He continued, “We have high-graded an area which we refer to as the Ke Ga Offshore Wind Development Zone (Ke Ga OWDZ)’, offshore southern Vietnam, where we believe our alliancing approach has the potential to deliver utility-scale offshore wind energy development within Government’s price expectations”.
The Ke Ga OWDZ is an area outside of the current oil and gas production areas of the Cuulong Basin between 20 and 70 kilometres offshore southern Vietnam’s Binh Thuan and Ba Ria-Vung Tau Provinces, the latter being the location of the PetroVietnam consortium offshore yards where the turbine foundations and offshore electrical sub-station platforms would be fabricated prior to installation in the zone.
Ian Hatton said, “PVC-MS and VSP have world-class engineering design and fabrication capability as proven by the many structures they have produced that serve Vietnam’s offshore oil and gas industry. It is our belief that the Ke Ge Offshore Wind Project (Ke Ga OWP) will have the highest local content level of any offshore wind farm anywhere.”
Ian added: “So, not only will the project provide potential energy for the major economic growth areas of southern Vietnam, they will also provide a major stimulus to southern Vietnam’s economy, sustaining existing employment in fabrication yards, and creating new, long-term employment opportunities in operations and maintenance”.
“We are also very pleased to be joined in the Ke Ga Alliance now by offshore Wind Turbine Generator (WTG) technology player, MHI Vestas Offshore Wind, who produces the market leading, high-productivity V164 turbine. Early selection of the preferred turbine will enable us to move rapidly and efficiently towards a financeable development in parallel to the environmental assessment and grid integration processes. It is also our intention to bring forward additional concepts for energy storage to provide improved grid stability. This anticipates the impact of increasing volumes of energy generated from variable natural resources. This in turn can lead to additional economic benefit by enabling development of ‘mission-critical’ facilities such as data-centres and medical facilities.”
Enterprize Energy is Joint Venturing with Renewable Energy Global Solutions, another Singaporean Company whose offshore wind project development management team has extensive previous experience with the engineering design and deliveries of many of the advanced technology solutions for oil and gas production facilities in Vietnam’s offshore jurisdiction and in different continents world-wide.
Until June 2018, approx. 286 solar power projects of total capacity of 19,300 MW have been submitted to the licensing authorities to be supplement to the Power Master Plans, but only 100 projects have been approved (approx. 4,700 MW). We also note that 90% projects are still in other licensing processes such as application for investment registration license, construction permit, etc. At least 10 solar power projects that investors have signed PPAs with EVN recently. By end of September 2018, the first solar energy project will connect to the national power grid (35 MW in Hue province). With regards to the remaining projects have not yet been included in the Power Master Plans, the Deputy PM Trinh Dinh Dung has decided and instructed that MOIT must consider and approve to addition if such solar energy projects satisfy one of the following conditions: • MOIT has completed the investigation process of the application to supplement to Power Master Plan of such project; or • Projects have submitted the application to supplement to Power Master Plan to MOIT and such projects are located in provinces that have potential to develop solar energy projects.
SPECIAL POLICY ONLY FOR NINH THUAN – NOT FOR OTHER PROVINCES
n 31 August 2018, the Prime Minister Nguyen Xuan Phuc issued Resolution 115/NQ-CP (“Resolution 115”) to finally decide that the commercial operation date (COD) deadline (previously 30 June 2019) for solar projects in Ninh Thuan province to enjoy the 9.35 US cents feed in tariff has been extended to the end of 2020. This extension applies to those solar energy projects approved in the relevant Power Master Plan. Resolution 115 took effect on 31 August 2018 and lays to rest the badly kept secret that Ninh Thuan, a literal hot spot for solar projects, will enjoy more favorable terms than projects in other locations which remain bound to the 30 June 2019 COD deadline (as noted below).
NEW REGULATIONS FOR SOLAR ENERGY PROJECTS AFTER 30 JUNE 2019?
The Government will issue new FIT and new PPA for projects coming into operation after 30 June 2019. Such new FIT will be much more lower than the current one (verbally confirmed by Mr. Nguyen Ninh Hai, Deputy Director of New and Renewable Energy Department, MOIT). The Government is now also working on a Competition Auction System for solar power projects that may be completed at around the 2020. The new FIT will be applied only until the Competition Auction System is decided and implemented.
ON GOING DRAFT POLICY ON NEW FIT FOR WIND ENERGY PROJECTS
MOIT has proposed the below a new and very promising FIT for wind energy projects to PM for his consideration and approval: o FIT for Onshore project: 8.5 cents o FIT for Offshore project: 9.8 cents FYI, in current draft available to us, onshore and offshore projects are defined as below: “Onshore wind power project means on-grid wind power project that having its wind turbines to be built and operated on inland areas and coastal zones (NB: boundary of such inland areas and coastal zones is the average low water line for 18.6 years) Offshore wind-power project means on-grid wind power project that having its wind turbines to be built and operated outside inland areas and coastal zones to the sea.”