The World Bank (WB) recommended 20 actions for the successful development of Vietnam’s offshore wind energy industry.
According to the report “Offshore Wind Energy Roadmap for Vietnam”, carried out by the entity from February to October 2020, Vietnam will have around 450 large offshore wind turbines by 2035, which will be installed in almost 10 wind farms. conventional fixed marine and one or two floating.
Additionally, under current plans, there will be nearly 30 near-shore wind farms using smaller turbines.
However, the World Bank warned that some of these programs cannot be carried out due to the risk of adverse environmental and social impacts in those areas.
Meanwhile, the cost of energy from the first offshore wind projects will likely be high, between $150 and $200 per megawatt hour (MWh), due to the limited use of local suppliers and the small scale of the project.
Experience from other markets has shown that the cost of energy drops rapidly as more projects are developed, with reduced risk and increased local capacity.
In this case, the projects’ energy cost can be expected to drop to around $80-90 per MWh by 2030 and $60-70 by 2035.
In a scenario where offshore wind power covers 12 percent of Vietnam’s electricity demand by 2035, the levelized cost of power is projected to be 20 percent lower.
Local jobs will quadruple and there will be more value added to the economy. Consumers will enjoy less than half of the net cost, according to the report.
Experience in developed offshore wind markets suggests that ambitious long-term goals can serve as pillars for industry development.
The results of this roadmap also indicated that the target of 10 gigawatts (GW) by 2030 and 25 GW by 2035 is likely to be achieved. At the same time, further growth will pose a greater risk of adverse environmental and social impacts.