Current Status of Offshore Wind Power in Our Country

Offshore wind power is one of the renewable energy sources with significant potential, not only due to its ability to generate abundant clean electricity but also because of the stability of wind resources at sea. With the rapid development of technology and changes in global energy policies, offshore wind power is increasingly attracting the interest of countries and businesses. In the following article, RX Tradex will provide an overview of the current status of offshore wind power in Vietnam, analyze global development policies, and propose solutions to promote the offshore wind power industry in our country.

1. Offshore Wind Power and Global Development Policies

Offshore wind power is a technology that uses wind turbines installed at sea to capture wind energy and convert it into electrical power. Compared to onshore wind power, offshore wind power has several notable advantages:

• High and Stable Wind Speeds: Winds at sea are generally faster and more stable compared to those on land, which helps wind turbines operate more efficiently and produce more energy.
• No Impact on Land Scenery: Offshore wind turbines do not affect land scenery and do not interfere with other activities.
• Large Expansion Potential: The vast area of the sea allows for the construction of large-scale wind power projects.

Global Development Policies:

• Europe: Europe is a pioneer in offshore wind power development. Countries such as Denmark, the United Kingdom, and Germany have made significant strides in this energy sector. The UK aims to achieve 40 GW of offshore wind capacity by 2030. Denmark, with its strong supportive policies, has become a leading center for research and development in offshore wind technology.
• United States: The US is beginning to deploy large-scale offshore wind projects, particularly along the East Coast and Central Atlantic. The US government has announced significant initiatives and investments in offshore wind technology research and development, along with improving infrastructure and supportive policies.
• Asia: China leads in Asia with some of the largest offshore wind projects in the world. Japan and South Korea are also ramping up investment in this sector to reduce reliance on fossil fuels and enhance clean energy supply.

2. Current Status of Offshore Wind Power in Vietnam

Vietnam’s extensive coastline provides favorable wind conditions, offering significant potential for offshore wind power development. The Vietnamese government has started focusing on harnessing this energy source to meet the growing energy demand and minimize environmental impact.

Current Situation:

• Projects in Operation: Several offshore wind power projects have been implemented in Vietnam and contribute to the national energy grid. The Dam Nai Offshore Wind Power Project, with a capacity of 30 MW, completed its construction phase and became operational in 2021. This was one of the first projects to exploit Vietnam’s offshore wind potential, providing clean electricity to the Central region. Following this, the Thai Binh Offshore Wind Power Project, with a capacity of 48 MW, began operation in 2022, contributing to green energy supply in the North. Recently, the Phu Quy Offshore Wind Power Project, also with a capacity of 30 MW, has commenced operation, marking an initial success in offshore wind power development in the Central region. These projects not only generate sustainable energy but also demonstrate the robust development and potential of offshore wind power in Vietnam.
• Policies and Regulations: The Vietnamese government has issued several policies to support renewable energy development, including offshore wind power. The revised Power Development Plan VII and Power Development Plan VIII set targets for offshore wind power capacity to reach 7 GW by 2030 and 28 GW by 2045. Supportive policies include electricity price incentives, tax benefits, and legal regulations aimed at encouraging both domestic and foreign investors.
• Challenges and Opportunities: Despite its great potential, developing offshore wind power in Vietnam faces several challenges. Issues such as high investment costs, lack of supporting infrastructure, and complex legal procedures can hinder the rapid development of the industry. However, with government support and investment incentives, the offshore wind power sector in Vietnam is still on a growth trajectory.

3. Solutions for Developing Offshore Wind Power in Vietnam

To develop offshore wind power in Vietnam effectively and sustainably, several coordinated and strategic solutions need to be implemented.

Proposed Solutions:

• Increase Investment in Research and Development: Investing in research and development of offshore wind technology is crucial. Research can help reduce costs and improve the performance of wind power projects. Both the government and investors should support new and innovative technologies in this field.
• Improve Infrastructure and Legal Processes: To promote the offshore wind power sector, it is necessary to enhance supporting infrastructure, including electrical transmission systems and seaports. Additionally, simplifying legal processes and licensing procedures is essential to reduce project implementation time and costs. Recently, Norway’s leading energy group Equinor has mentioned that the renewable energy sector in Vietnam, including offshore wind power, is hampered by regulatory barriers.
• Strengthen Public-Private Partnerships: Encouraging collaboration between the government, investors, and research organizations can create a favorable development environment. Public-private partnership models can help share risks and costs while enhancing resources and expertise for offshore wind power projects.
• Develop Coordinated Support Policies: The government should continue to maintain and develop support policies for the offshore wind power sector, including tax incentives, electricity pricing, and other encouragement mechanisms. Ensuring effective and transparent implementation of these policies is critical.
• Promote Awareness and Training: Enhancing awareness and training for experts and workforce in the offshore wind sector is vital. This will help develop a high-quality workforce to meet the growing demands of the industry.

Conclusion

Offshore wind power is becoming an important part of the global energy strategy and has significant potential in Vietnam. With rapid technological advancements and supportive government policies, the offshore wind power sector in Vietnam has many opportunities for growth. To fully exploit this potential, a close collaboration between the government, investors, and relevant organizations, along with implementing comprehensive and effective solutions, is required. Developing offshore wind power will not only meet the clean energy demand but also contribute to environmental protection and sustainable economic development.Participate in METALEX Vietnam 2024 to update the latest advanced metalworking technologies and solutions, organized in October this year. The exhibition will showcase leading technologies in the metalworking industry and provide a great opportunity to meet top global technology providers. Join discussions on business strategies and breakthrough technological innovations to enhance productivity and efficiency for businesses.