Bac Lieu wind power farm in Vietnam. (Photo: Wikimedia Commons)
The "2024 Global Wind Energy Report," recently released by the Global Wind Energy Council (GWEC), highlights Vietnam's wind power industry showing signs of hope in 2023 after a challenging year. It also calls on the government to accelerate the formulation of regulations through inter-ministerial tasks to improve the wind power regulatory framework.
Last May, government released the Power Development Plan 8 (PDP8), outlined the country's energy strategy for the period of 2021 to 2030. It includes targets to achieve 21.8 GW of onshore wind power capacity by 2030. As for offshore wind power, the plan sets a target of 6 GW by 2030, with a steep increase to 91 GW by 2050.
GWEC believes that Vietnam currently doesn’t have real offshore wind project, only intertidal project located near to the shore. The related regulatory framework is still under development. Typically, Vietnam takes 2 to 3 years to make a new law and 6 to 8 years to develop and construct, so the report suggests that Vietnam may not achieve its goal of connecting the first generation of offshore wind by 2030.
In terms of onshore wind power, GWEC assume that the new power purchase agreements (PPA) are considered less favorable for developers. For instance, the MOIT only allows projects that have all necessary permits to dispatch during the negotiation process, and they will enjoy a tariff of only 50% of the ceiling price in this period. The difference between the 50% tariff and the final tariff will be paid once the negotiations are finished.
The report also mentions that the government has proposed measures to address power outages in 2023, including ensuring stability in hydro and coal power supply. Additionally, they have invested $1 billion to construct a power grid connecting the north and south, spanning approximately 519 kilometers, with completion expected in June. Furthermore, the PDP8 has outlined plans to allocate a budget of $3 billion annually until 2030 for grid upgrades.
At the United Nations Climate Change Conference (COP28), Vietnamese Prime Minister Pham Minh Chinh announced the launch of the Resource Mobilization Plan (RMP). This plan marks a significant step in implementing the Just Energy Transition Partnership (JETP), with an anticipated investment of $15.5 billion in developing renewable energy. Wind power is highlighted as a key focus area of the plan.
