Vietnam has some of the best wind resources globally. The Power Development Plan 8 (PDP 8), currently in draft form, has targets of 7 GW of offshore wind and 21 GW of onshore wind by 2030. The wind industry is ready and able to deliver on these targets and help Vietnam increase its energy security, improve the balance of trade, and increase the sustainability of the economy and the country’s international competitiveness.
From 1-2 December 2022, the Global Wind Energy Council (GWEC) is holding the Vietnam Wind Power 2022 (VWP) conference at the Lotte Hotel in Hanoi, Vietnam.
It is a critical time for the wind industry in Vietnam and VWP brings together key members of government with both local and international industry, to discuss key topics impacting the wind industry.
As noted, Vietnam has great wind potential, and in particular, offshore wind can contribute significantly to Vietnam’s future development, provide price predictability, create tens of thousands of jobs in a new industry, and improve the balance of trade, all while helping the country meet its net zero commitments and attract international investment.
If instigated in a progressive way to allow the industry to mature naturally from some well-established preliminary projects, a ‘phased’ approach of rounds of wind farms consisting of differing tariffs and reductions of these into auctions over time can allow offshore wind to be more cost-effective than most other forms of energy generation – consider examples from the UK & Taiwan.
To enable this, there is an urgent need to establish a cross-ministerial coordinating committee, likely chaired by MOIT (due to them being the key ministry for energy). Offshore wind policies and regulations affect many different ministries and levels of government. This committee would work to accelerate the resolution of bottlenecks across the different ministries.
Regarding onshore wind, the feed-in-tariff (FiT) expired in 2021. While 4 GW of onshore wind completed before the FiT expired, there are another 4 GW of projects that signed a PPA but missed the target. Many of these projects has completed construction since the FiT expired. As of now, these projects are not producing electricity, this while Vietnam continues to import coal at very high prices.
Electricity Vietnam Corporation (EVN) recently published proposed tariffs for the wind projects that missed the FiT deadline. The process for implementing the proposed tariffs is not yet clear, and to provide a path forward for industry, we encourage government to clarify this as soon as possible.
GWEC and the industry are ready to work with government to develop solutions that bring the industry closer to meeting the goals set by the Vietnamese government.
Global Wind Energy Council (GWEC) is a member-based organisation that represents the entire wind energy sector. The members of GWEC represent over 1,500 companies, organisations and institutions in more than 80 countries, including manufacturers, developers, component suppliers, research institutes, national wind and renewables associations, electricity providers, finance and insurance companies.