Businesses urge action to advance offshore wind power, LNG projects

At a meeting on Friday, representatives from Vietnam Electricity (EVN) and energy corporation PVN highlighted multiple legal challenges impeding the progress of these projects, including the absence of a legal framework for offshore wind energy.

They noted that Nhon Trach 3&4, slated for launch between late 2024 and 2025, is hampered by legal complexities in power purchase agreement (PPA) negotiations.

Bac Lieu LNG-to-power plant has not made any progress since getting approved for investment in 2020, they said.

Preparation for such projects, encompassing contractor selection, establishing PPA contracts, and approval processes, can extend up to eight years. Additionally, construction of offshore wind energy projects often takes six to eight years post-survey.

These protracted legal procedures threaten the completion and operationalization of these projects by the targeted 2030 deadline. As a result, the energy business representatives proposed new regulations to clarify and expedite processes for both offshore wind energy and LNG projects.

Minister Nguyen Hong Dien agreed with these suggestions, emphasizing the need to treat offshore wind energy projects as national priorities, eligible for special mechanisms and policies.

The National Electricity Development Plan 8, approved by the Prime Minister, sets ambitious goals for Vietnam’s renewable energy sector.

By 2030, production from natural gases should reach 30,420 MW, with 75% from LNG. Offshore wind energy is expected to achieve a capacity of 6,000 MW or more, contingent on technological advancements and cost considerations.