Prime Minister Pham Minh Chinh receives the representatives from two energy groups.
On December 3, within the framework of a working program in the United Arab Emirates, Prime Minister Pham Minh Chinh received Robert Helms, a member of the board of directors of Copenhagen Infrastructure Partners (CIP) from Denmark, and Iann Hatton, chair of the British Enterprize Energy (EE).
Renewable energy
Robert Helms said CIP has a contract worth $200 million and is planning to sign another contract worth $350 million in Vietnam.
CIP is working to research and develop offshore wind power farms in Binh Thuan with a capacity of 3.5 GW with estimated investment capital of $10.5 billion.
According to EE’s Ian Hatton, in Vietnam EE is teaming up with French Societe Generale, Danish Vestas and British ODE to develop Thang Long Wind Complex in Binh Thuan.
The project includes two component projects, including Thang Long Wind (TLW), 3,400MW, connected with the national grid and capitalized at $11.9 billion, and Thang Long Wind 2 (TLW2) which produces and exports hydrogen energy from water electrolysis with a total capacity of 2,000 MW. The total investment for TLW2 is $5 billion.
Ian Hatton said the group is willing to put TLW and TLW 2 into commercial operation by 2029. It is negotiating with Electricity of Vietnam (EVN) on the electricity pricing regime.
Chinh thanked both groups for investments in Vietnam’s wind power sector. After the Glasgow meeting, Vietnam made changes related to the institutional regime and planning, especially the development of a renewable energy industry.
“Vietnam is a tropical monsoon country which has favorable conditions to realize the plan to develop renewable energy,” Chinh said.
He said that Vietnam will build an institutional regime to develop a renewable energy industry, and an overall development plan with incentives in tax, price, land rent, water surface and sea surface to attract investors.
He noted five important criteria in developing renewable energy: electricity generation, transmission, reasonable distribution, effective use and affordability to people and businesses.
Pricing, electricity transmission
Replying to proposals from the business community, PM Chinh said that Vietnam will conduct a survey on reserves and electricity transmission system. The projects now under research basically suit the eighth national power development plan (Plan 8). The important factors are the pricing and electricity transmission network.
He believed that it is reasonable for groups to choose PVN as the partner to deploy projects because it has high capacity in offshore wind pole production. Regarding the pricing, he thinks they must be high enough to bring profits to the investor, and low enough to help develop the economy and fit the pockets of people.
Chinh recalled a meeting between him and the UAE’s Vice President, where he was told that one kwh of wind power in UAE costs 3-4 cent, while figures are 8-9 cents in Vietnam, and the price is applied for 20 years.
He said investors need to report their problems, from administrative procedures to site clearance, to Vietnam’s agencies during the implementation of projects, so that problems can be solved immediately and projects can be completed soon. They can contact PVN, the Ministry of Industry and Trade (MOIT) and the government.
Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said that under Plan 8, Vietnam plans to develop 6,000 MW of offshore wind power. Vietnam’s wind reserves, offshore wind potential and the cooperation with PVN will help implement the projects effectively.
PetroVietnam (PVN) CEO Le Manh Hung said PVN is conducting comprehensive survey and assessment of the potential of offshore wind power; choosing partners to cooperate with in order to build a wind power investment list; implementing human resources training strategy for the new energy industry; and joining the global offshore wind power supply chain.
The Prime Minister said that building power transmission lines at sea was necessary. Vietnam has signed a contract to sell solar and wind power to Singapore and it needs a sea power transmission line to reach the country.