Viet Nam has opportunity for energy transition towards green growth

Friday, Dec 02, 2022 17:11

Speakers at the Viet Nam Wind Power in Ha Noi. — Photo courtesy of the organiser

Viet Nam boasts substantial potential for wind power, particularly offshore wind power, providing an opportunity for the country to fulfil its energy transition target towards green growth.

That was the message heard at a conference held by the Global Wind Energy Council (GWEC) which was wrapped up in Ha Noi on Friday.

Viet Nam Wind Power (VWP22) is an official industry event organised by the GWEC since 2018. It provides a platform for the Government and the sector to discuss pressing issues around the development of wind energy in Viet Nam.

Viet Nam is one of the best wind resource countries in the world. The draft Power set the target of 7GW of offshore wind and 21GW of onshore wind by 2030. The wind power sector is ready and able to achieve this goal and help Viet Nam strengthen its energy security, improve its trade balance and the economy’s sustainability as well as its international competitiveness.

Pham Nguyen Hung, Deputy Director of the General Electricity and Renewable Energy Authority at the Ministry of Industry and Trade, said the Vietnamese Government has adopted various policies and mechanisms to facilitate renewable energy development.

As of the end of 2021, Viet Nam’s total installed capacity of renewables reached 20.7 GW, accounting for more than 27 per cent of the accumulative installed capacity of the electricity system, making Viet Nam a leading country in this regard. The percentage is expected to hit 59 per cent by 2050.

Renewable power, especially wind power, both onshore and offshore, is forecast to grow strongly, serving as a foundation to ensure national energy security in the long term, Hung said.

He emphasised that developing wind power, particularly offshore wind power, and gradually forming the domestic renewable energy industry specialising in installation, construction and manufacturing to improve the country’s self-reliance and reduce production costs are major orientations set out by the Vietnamese Government for the coming years.

The official also pointed to challenges to these efforts such as high construction costs, explaining that offshore wind power development requires synchronous infrastructure and better personnel quality.

Sharing the view, Ha Dang Son, Director of the Centre for Energy and Green Growth Research, raised the issue of Viet Nam’s weak financial capacity, suggesting the country put forward a suitable wind power development roadmap along with mechanisms and policies to attract private investment.

The Politburo issued Resolution No 55-NQ/TW dated February 11, 2020 on strategic orientations for national energy development by 2030 with a vision towards 2045.

The document highlights the need to devise breakthrough mechanisms and policies to encourage and promote the development of renewables to replace fossil fuels, with priority given to wind and solar power.

In the context of Viet Nam’s strong political will and commitment to addressing climate change including the ambitious commitment to reach net-zero target by 2050, which has been confirmed in the updated National Determined Contributions (NDCs) submitted at COP27 in Cairo, a radical transformation in every sector of the economy is needed to meet the threat of climate change. A shift to clean and renewable energy, including wind power, is at the centre of this transition.

Ambassador of Norway to Viet Nam, Hilde Solbakken, told the forum: “Like Viet Nam, Norway is in the process of developing the offshore wind industry.

"We have much to gain from sharing our experiences on developing enabling domestic policies that spur on new knowledge, technical advances, and investments in offshore wind. Bringing all relevant stakeholders into this work, across economic sectors and geographies can help us find the best way forward. The Norwegian Embassy and Innovation Norway, along with the Norwegian energy companies in Viet Nam stand ready to contribute to unlocking the full potential of wind power in Viet Nam.”

Commercial Counsellor Arne-Kjetil Lian added: “We are pleased to have the Norwegian leading companies in wind power being active in VWP22 today. All of them have established a commercial presence in Viet Nam and have extensive experience to share in developing, managing and operating wind power projects.

"When it comes to offshore wind, Norway has a lot to share. Norway continues to drive innovation in floating offshore wind, building an industry that is scalable, cost competitive and nature friendly.”

Regional Director Asia & Middle East at Innovation Norway, Ole Henæs also told the forum: “Viet Nam is considered to have the best wind resources in Southeast Asia with a long coastline, shallow water depths and high consistent wind speeds. To unblock this immense potential, Viet Nam needs a strong local supply chain and good technologies and expertise, in addition to a stable and enabling regulatory framework.

"This is what the Norwegian business community in Viet Nam and the region is ready to share. With the very impressive GDP growth rates over the past two years, Viet Nam has a very promising future for wind power and has ample opportunities for business cooperation. Innovation Norway in the region will do our best to facilitate this.” — VNS

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