Offshore Wind Worldwide Regulatory Framework in Selected Countries 5th Edition 2024 - Flipbook - Page 370
Vietnam
370
ons from the Ministry of Industry and Trade
(MOIT), Vietnam has offshore wind power
potential of about 160 GW. The offshore
wind power capacity is targeted to increase to 91.5 GW by 2050. These ambitious
targets are a key part of Vietnam’s strategy
for achieving net-zero emissions by 2050, a
commitment announced by Vietnam during
the COP26 World Leaders' Summit in 2021.
2. THE OFFSHORE WIND
PROMOTION SYSTEM
Currently no government subsidies or promotion systems are provided specifically to
offshore wind power projects. The feed-in
tariff for offshore wind is slightly higher
than onshore projects due to the higher
associated development, construction, and
operation costs. The latest tariff is set at
VND 1,928 per kWh (or USD0.085 per kWh)
for onshore projects and VND 2,223 per kWh
(or USD0.098 per kWh) for offshore projects.
However, such tariffs only apply to projects
which were "partially or fully operational"
before 1 November 2021. If a project is partially operational, such tariff only applies to
the operating portion of the project before
the tariff expiry date. This deadline has been
a critical issue for large-scale offshore wind
power projects, and indeed no large-scale offshore wind power project has met
the deadline. On 7 January 2023, the MOIT
issued an electricity generation price range
to be applied to the portions of wind power
projects which have signed power purchase
agreements (PPAs) with Vietnam Electricity (EVN, the state-owned company with a
monopoly over power transmission) before
1 November 2021 but were not operational
by that date. The ceiling price of the electricity generation price range is set at VND 1,587
per kWh (approximately USD0.065 per kWh)
for onshore projects and VND 1,816 per
kWh (approximately USD0.075 per kWh) for
offshore projects, which is only about 82%
of the latest feed-in tariff. Notably, the price
range is denominated in VND only (instead
of USD or another internationally convertible currency), and therefore investors
