EVN asked to buy renewable energy at 90% import price
HCMC – Investors involved in renewable energy project have proposed Vietnam Electricity Group (EVN) purchase
However, the guidance could be clearer, so many wind power projects under survey must be stopped. The quieter market has made international investors hesitate to consider when investing in Vietnam.
Transformation in the energy industry
On the morning of June 14, in Hanoi, thematic sessions took place within the framework of the High-Level Forum on Industry 4.0 (Vietnam Industry 4.0) 2023, organized by the Central Economic Commission.
Vietnam Industry 4.0 Conference 2023 is an annual event hosted by the Central Economic Commission, collaborating with central ministries, branches and IEC corporations.
The event plays an important role in connecting the parties to promote the transformation of the national argument and develop the innovation ecosystem in Vietnam for many years.
This year, to implement Resolution No. 29-NQ/TW on accelerating the country's industrialization and modernization to 2030, with a vision to 2045, the workshop will revolve around the theme "Promoting transformation digitalization, fast and sustainable green transformation to create breakthroughs, shorten the process of industrialization and modernization of the country by 2030, with a vision to 2045".![]()
In the symposium, the delegates discussed "Technological trends and solutions to develop Vietnam's energy industry in the Strategy of Industrialization and Modernization to 2030, with a Vision to the year 2045" at thematic session 3.
Speaking at the discussion session, Mr Nguyen Duc Hien, Deputy Head of the Central Economic Commission, said that Power Planning VIII aims to supply enough electricity demand in the country, meeting socio-economic development goals with an average GDP growth rate is approximately 7%/year from 2021 to 2030, about 6.5 - 7.5%/year in the period 2031 - 2050.
Power Planning VIII focuses on strongly developing renewable energy sources for electricity production, reaching the rate of about 30.9 - 39.2% by 2030, towards the target of renewable energy accounting for 47%. Oriented to 2050, the proportion of renewable energy in electricity production will account for 67.5-71.5%.
However, Vietnam's energy industry faces many challenges, such as the rapidly growing energy demand, the domestic supply needing more to meet the requirements, many power projects behind schedule, and the annual decline in coal, crude oil and gas production reserves and output.
This has led Vietnam to increase energy imports, reduce energy self-sufficiency, and increase dependence on other economies.
Over time, the world energy industry has shifted with changes in policies, structures and technologies: from the production and consumption of traditional fossil fuel sources (coal, oil, natural gas) to sustainable renewable energy sources (wind, solar, biomass...).
Many wind power enterprises hesitate when Vietnam.
Talking about participating in the renewable energy supply chain, specifically wind power, Mr Le Manh Cuong - General Director of PetroVietnam Technical Services Corporation (PTSC), said that the organization's International assessment shows that Vietnam has the largest wind power potential in Southeast Asia, far ahead of other countries.
The Global Wind Energy Council (GWEC) estimates that Vietnam has about 600 GWh of untapped wind power, including 300 GWh of offshore wind and 300 GWh of onshore wind power.
According to PTSC leaders, international investors have set up offices in Vietnam right after Vietnam has a preliminary policy on attracting investment in wind power.
However, in the past, the guidance could be clearer, so many projects being surveyed have to be stopped. In the past few years, the market has been quieter when Power Plan VIII has not been issued and problems with renewable energy projects. Therefore, international investors have begun to hesitate to consider when investing in Vietnam.
A week ago, Orsted Group, Denmark's largest energy group, announced reducing their ambitious target from 30 GWh to 28 GWh by 2030 and withdrawing from the Vietnamese market.
Accordingly, Orsted believes the Vietnamese market needs to be more attractive than other markets. However, this group still believes that Vietnam is still a potential country to become the centre of Southeast Asia in terms of production and supply chain.
Previously, in May 2023, Orsted signed a contract with PTSC to manufacture 33 turbine foundation structures for the Greater Changhua 2b&4 offshore wind farm with a total capacity of 920 MW in Taiwan (China). The contract worth more than 300 million USD is expected to use 70,000 tons of steel and bring thousands of jobs at PTSC and contractors in the supply chain.
In his speech, the General Director of PTSC also mentioned the participation of Vietnamese enterprises in the renewable energy supply chain, in which PTSC is one of the units with potential advantages.
For his part, Dr Nguyen Duc Hien believes Vietnamese enterprises like PTSC can fully participate in the supply chain, such as the production of stands, installation, etc. However, even if there is orientation, with a specific mechanism, it is easier for businesses to participate.
At the forum, experts and representatives of international organizations expressed their joy when the Government of Vietnam approved the Electricity Master Plan VIII. According to them, Vietnam needs to establish a mechanism to promote energy transition; develop economic and efficient energy use policies in clean energy conversion.
