Trade ministry to propose pilot mechanism for offshore wind projects

The Ministry of Industry and Trade (MoIT) has been tasked with drafting a resolution of the National Assembly if necessary, to launch pilot offshore wind power projects soon.

Vietnam's offshore wind power capacity is expected to reach around 6,000 MW by 2030. Photo: Hoang Anh/The Hanoi Times

This directive was emphasized by Deputy Prime Minister Tran Hong Ha during the conclusion of the meeting of the Steering Committee for key energy sector projects on March 13.

According to the National Power Development Plan VIII (PDP VIII) until 2030, offshore wind power is expected to reach around 6,000 MW by 2030, with the potential for further growth given rapid technological development, reasonable electricity prices, and transmission costs. However, as of now, no projects have yet been decided upon for investment and allocation to investors.

At the end of January, the Deputy Prime Minister instructed the MoIT along with relevant agencies to develop a pilot project using the state budget for exploration, survey, and selection of investors for offshore wind power projects.

During this meeting, representatives of the Steering Committee noted that this pilot project faces challenges related to marine exploration, surveying, and measurement, as well as maritime jurisdiction. The project also encounters difficulties in investment aspects such as approval of investment policies, investor selection, conditions for foreign investors, and compliance with planning laws.

Ha urged the MoIT to urgently review the existing regulations and legal foundations for implementing the pilot project. If necessary, he said, the ministry should request the authority to draft a resolution of the National Assembly for immediate implementation while legal amendments are pending.

This special mechanism has been proposed by many corporations and businesses in previous meetings with government leaders and ministries. They believe that there needs to be a decision from the competent authority regarding special mechanisms to address the unresolved legal issues in the implementation of offshore wind power projects.

In addition to the offshore wind power pilot project, liquefied natural gas (LNG) power projects also face various obstacles during implementation. For instance, the Nhon Trach 3 and Nhon Trach 4 Thermal Power Plant projects encounter regulations regarding the commitment to purchase long-term electricity in power purchase agreements and the fixing of the electricity selling price framework for LNG.

The Deputy Prime Minister identified this as an urgent issue that could affect the investment progress of power projects and national energy security. He tasked the MoIT with clarifying existing regulations, and studying, and proposing solutions for handling these issues in a timely manner.