The private sector should not be assigned offshore wind power development: MoIT

A project for offshore wind power located in Ninh Hải District in the central coastal province of Ninh Thuận. — VNA/VNS Photo

HÀ NỘI — The Ministry of Industry and Trade (MoIT) has submitted a report to the Government regarding the implementation of a pilot project for offshore wind power development, recommending that the private sector should not be assigned this task.

The ministry believes that before fully assessing issues related to national defence, security, pricing and legal matters, it is premature to involve the private sector. Instead, they propose three options for Sate-owned economic groups to undertake the project.

The first option is that the Việt Nam Oil and Gas Group (PetroVietnam) and its subsidiaries have certain advantages in deploying offshore wind power, according to the report.

Current policies do not allow PetroVietnam to invest outside its primary industry, which includes offshore wind power. PetroVietnam has asked the authorities for permission but has not yet been approved. Further clarification is needed after receiving feedback from relevant ministries and the Committee for Management of State Capital at Enterprises (CMSC).

Under the second option, the Vietnam Electricity (EVN)’s involvement could streamline the process, since they handle both buying and selling electricity, eliminating the need for price negotiations.

Further clarification is needed after feedback from relevant ministries and the Committee for Management of State Capital at Enterprises.

Under the final option, the Ministry of National Defence has said that their units lack the capacity and experience for this role, although they could participate in certain stages of the project. Further clarification is needed after consulting with all relevant ministries.

The MoIT acknowledges that while the private sector has been active in the electricity sector, particularly in traditional power, solar, and small-scale wind projects, offshore wind power presents unique challenges. These include significant legal complexities and national security concerns, making it unsuitable for pilot investment by the private sector until these issues are fully assessed.

A recent World Bank study highlights Việt Nam’s substantial potential for wind energy, noting that over 39 per cent of the country’s area has an average annual wind speed greater than 6 m/s at 65 metres altitude, equivalent to a capacity of 512 GW.

According to the National Power Master Plan VIII, Việt Nam aims to reach an offshore wind power capacity of 6,000 MW by 2030, with a vision of increasing this to between 70,000 MW and 91,500 MW by 2050. However, the plan lacks specifics regarding the number, capacity, and locations of these projects, as well as the strategies for integrating this power into the national grid. — VNS