The wind power market in Vietnam is at a turning point. The country generated 16.5 GW of solar power and 11.8 GW of wind power in January 2021. As of 2021, another 6.6 gigawatts (GW) are scheduled to be supplied. Moreover, by 2025, the government also plans to construct 12 GW of onshore and offshore wind power, according to the Department of Energy. In this article, we talk about the rising investment opportunity in Wind Power in Vietnam.
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Wind Power Scenario In Vietnam
Although not as dramatic as the solar power sector, Vietnam’s wind power industry still surged in 2019. 7 wind power facilities were operational as of May 31, 2019, with a total installed capacity of 331 MW in the country.
The pioneering Trung Nam renewable energy complex was launched in April 2019. The project was finished in time to take advantage of a government-sponsored renewable energy feed-in tariff.
The Thang Long Wind Power Project aims to build a large-scale offshore wind farm near Kê Gà, in the province of Binh Thuan. The project’s first phase, with a capacity of 600 MW, is expected to begin operations by the end of 2022. The plan is for a total system capacity of 3,400 MW and a total expenditure of approximately $12 billion, not counting the cost of connecting to the national grid. (source)
Vietnam’s Vision – Double Wind Power by 2030
According to a power growth plan released by Vietnam’s Ministry of Industry and Trade (MOIT), wind energy output will double by 2030 and renewable energy production would triple between 2030 and 2045.
According to EVwind, the national power development plan VIII (PDP VII) includes aims to expand wind energy output from 600MW in 2020 to over 11 GW – 12 GW in 2030, as well as solar energy production from 19GW–20GW. The proposal includes 35 possible offshore wind projects.
According to the plan, total renewable energy output from wind and solar sources would reach 39.8 GW by 2030 and 121.7 GW by 2045.
Potential For Investment in Wind Energy in Vietnam
Vietnam’s climate and topography lend a great potential for renewable energy, particularly wind power. More than 3,000 km of coastline, as well as hills and mountains in the northern and central areas, provide Vietnam’s abundant wind resource. More than 39% of Vietnam, according to World Bank research, has wind speeds exceeding 6 m/s at 65 meters, which equates to the energy of 512 GW in capacity. Vietnam has 8.6% of its land area with excellent potential for big wind generating plants.
Vietnam’s energy sector accounts for 65% of its overall greenhouse gas (GHG) emissions, with 50% of its electricity powered through coal plants. However, Wind farms will help the country ease its reliance on fossil fuels, supporting smooth decarbonization of the power sector.
For a power-hungry nation with no signs of slowing down, such as Vietnam, that has relied largely on coal-fired electricity and hydropower for the previous two decades, Onshore wind is one of the fastest-growing alternative energy sources.
Offshore wind offers even greater promise for Vietnam, with a technical potential of 160 GW within 5 to 100 kilometers of the coast, which is almost two and a half times the country’s entire installed power capacity.
By the end of 2020, Vietnam’s installed wind power capacity was less than one percent (or 670MW). In response, Vietnam’s government intends to boost renewable energy capacity from 19GW to more than 36GW by 2030.
However, to achieve this goal, Vietnam will need to invest an estimated $20 billion, excluding the price of building the necessary transmission infrastructure. To finance this, private sector involvement is necessary, given the limits on governmental resources and the economic problems associated with a worldwide pandemic. This need has created a huge opening for the foreign investors to slip in and set their footprint in Vietnam’s untapped Wind Energy sector.
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