Vietnam is making strides in promoting its offshore wind power industry, but there are still several obstacles that need to be addressed to fully harness this green energy resource. The Ministry of Industry and Trade (MOIT) recently highlighted key challenges in offshore wind energy (OSWE) development, including planning, investment policy, investor selection, market access for foreign investors, and legal frameworks.
Deputy Prime Minister Tran Hong Ha stressed the importance of a pilot OSWE development plan to address these challenges and pave the way for successful projects. Stuart Livesey, an expert in OSWE projects, emphasized the need for pilot projects combined with Feed-in Tariff (FiT) mechanisms to kickstart the industry, drawing on successful examples from Denmark, the UK, and Germany.
Denmark, the first country to install offshore wind turbines in 1991, saw significant growth in its OSWE capacity through FiT mechanisms and competitive bidding. The UK and Germany also followed similar paths, transitioning from FiT to competitive bidding models and achieving significant reductions in costs per kWh.
Livesey suggests that Vietnam can learn from these countries by establishing strong government policies and flexible legal frameworks to support the industry’s growth. He also points to Taiwan’s three-phase approach, combining pilot projects with FiT mechanisms and competitive bidding, as a successful model for scaling up OSWE projects.
Moreover, collaboration with experienced international partners, such as state-owned corporations and project developers, can help Vietnam access advanced technologies, reduce risks and costs, and facilitate knowledge transfer. Partnerships with reputable international investors will be crucial for the successful deployment of OSWE projects in Vietnam.
In conclusion, by addressing regulatory and technical challenges, establishing strong government policies, and collaborating with experienced partners, Vietnam can unlock its offshore wind power potential and establish itself as a key player in the green energy sector. The completion of the Electricity Law and the pilot mechanism expected to be issued by the end of 2024 will be crucial steps in this journey towards a sustainable energy future.
