Challenges of offshore wind power development
Developing the electricity sector is a top priority of the Government to meet the sustainable energy needs of the present and the future. In recent years, socio -economic development has required an increase in electricity capacity of 10-12% per year. Therefore, early and long-term investment to ensure sufficient electricity supply for future development needs, especially baseload electricity sources, renewable energy, clean electricity (such as offshore wind power, gas power) to achieve the goal of Net Zero by 2050 is extremely urgent.
It is necessary to soon complete the legal framework for offshore wind power (Illustration photo)
According to Power Plan VIII, Vietnam has great potential for offshore wind power with a capacity of up to 600,000 MW and a capacity target of 6,000 MW by 2030. However, there are currently no specific projects identified in this plan and only capacity allocation by region.
Besides, the development of these projects is also facing many difficulties and problems such as: legal documents; specialized state management; technology...
Regarding legal documents, so far, there are no specific regulations for offshore wind power, except for the mention in the Power Plan VIII issued in 2023. According to Article 45, Clause 2 of the Vietnam Sea Law 2012, the assignment of some sea areas to organizations and individuals for resource exploitation must comply with Government regulations, but there are no clear guidelines on leasing sea surface for the renewable energy industry, especially offshore wind power.
The 2015 Law on Marine and Island Resources and Environment only defines the procedures for granting scientific research licenses to foreign organizations and individuals on Vietnam's seas, but does not mention surveys or construction of private marine economic development projects or offshore wind power.
In the field of environmental licensing, the 2020 Law on Environmental Protection clearly states the requirements for environmental impact assessment (EIA) for renewable energy projects in Article 28, environmental licenses in Article 39 and measures to reduce greenhouse gas emissions in Article 91. However, this law has not specified renewable energy projects in the green category to reduce greenhouse gas emissions and the exemption from EIA content for offshore wind power projects.
The issue of specialized State management is facing many difficulties due to the lack of clarity in the authority and responsibility of organizations and individuals who self-fund the survey; Offshore wind power projects in the Power Plan VIII only have a total capacity but the location and investor are not clear; The selection of investors has not been specifically guided by the Law on Bidding and the Law on Investment; There are no clear regulations on the authority to assign sea areas to allow survey activities to serve the establishment of offshore wind power projects; The determination of survey areas sometimes overlaps with defense areas, increasing the complexity. In addition, there are no independent national standards on national defense security monitoring at sea.
In addition, there are no regulations allowing foreign organizations and individuals to conduct wind measurements and geological surveys in Vietnam's sea areas; The requirements for documents, processes, and procedures for granting approval documents for wind, geological, and topographic survey activities are unclear; There are no precise regulations on the ecological safety distance between offshore wind power projects and marine reserves or natural heritages.
Technically, there are no regulations on the area of the sea for wind measurement and geological survey, while these factors will vary depending on the conditions of each sea area; The maximum wind power capacity for each project has not been determined to promote investor participation while ensuring the balance of the transmission system; There is a lack of regulations on the survey capacity in each planning stage to match the total offshore wind power capacity determined in the Power Plan VIII.
What is the solution for offshore wind power?
Talking to reporters about solutions to develop offshore wind power to achieve the target according to the Power Plan VIII, Dr. Ngo Duc Lam - Energy expert, former Deputy Director of the Institute of Energy (Ministry of Industry and Trade) said that there is not much time left from now until 2030, if we continue to wait for regulations on offshore wind power, the target of 6,000 MW of offshore wind power will certainly not be achieved by 2030. Therefore, it is necessary to soon have breakthrough solutions, testing to both work and gain experience in building mechanisms and perfecting the legal framework for offshore wind power.
Dr. Ngo Duc Lam - Energy expert, former Deputy Director of the Institute of Energy (Ministry of Industry and Trade).
According to Dr. Ngo Duc Lam, to achieve the above goal, there must first be a commitment on the electricity purchase price and a roadmap for price increase to ensure the investor's revenue, although this may lead to a slight increase in retail electricity prices. Allowing the negotiation and signing of electricity purchase contracts according to these commitments will serve as a basis for mobilizing loan capital for the project.
Second, select domestic investors or joint ventures with international investors, based on financial capacity, technical capacity, experience in construction and operation of wind power projects; possess offshore wind power technology that has been widely confirmed and recognized. Then, together with investors, test the pilot mechanism for Vietnam's first offshore wind power project. In parallel with the implementation of the pilot project, continue to develop mechanisms and policies for future bidding.
Third, the selected investor must be assigned a sea area for survey and exclusive rights to develop wind power there (with an initial scale of no less than 1,000 MW) and space to continue expanding the capacity scale (according to international experience, the scale of an offshore wind power project must be from 1,000 MW or more to have competitive electricity prices). On the other hand, it is necessary to clearly stipulate the competent authority assigned to the sea area, allow survey and guide the assessment of environmental and social impacts...
Fourth, expand regulations for Vietnamese companies to join international partners in the wind power value chain for export abroad. In particular, prioritize 3 factors: Supply chain, transportation and logistics, preferential taxes.
Fifth, the Government should consider establishing financial support mechanisms, such as credit guarantee funds or concessional loans, to help investors access capital with low interest rates and easier repayment conditions. This is especially important in the context of offshore wind power investment requiring large capital outlays and long payback periods.
In addition, there should be preferential policies on taxes and fees to reduce the financial burden on investors. For example, exemption from corporate income tax for a certain period of time or exemption from import tax on equipment serving the project.
In addition, stable and long-term mechanisms and policies are also indispensable, ensuring that regulations do not change suddenly and negatively affect the project implementation process. This stability creates confidence for investors, helping them feel more secure when investing in this new but potential field.
“During the period when many legal regulations are still lacking, the competent authorities should consider completing the legal framework and specific mechanisms, piloting to immediately implement the first offshore wind power project, as a basis for implementing the following projects,” Dr. Ngo Duc Lam emphasized.
Huy Tung
Source: https://www.pvn.vn/chuyen-muc/tap-doan/tin/6f6f93e6-2ab8-4532-b33b-6157566633d7
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