Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 317
Offshore Wind Worldwide 2023
power distribution company or the power
transmission company under EVN is responsible for the construction costs of the power
transmission lines from the connection
point to the national power grid.
5.3 Consequences of delays and
disruptions of the
grid connection system
Under the current wind power regulations
or the PPA template, there is no remedy to
protect the OWF owner against delays and
disruptions relating to the grid connection.
5.4 Onshore grid congestions,
prioritisation of renewable energy
resources and compensation
mechanisms
Concerns have been raised as to the potential overloading of the power transmission
system. This is particularly so in regions
with high solar irradiance, where many solar
projects will connect to the grid. Therefore,
there will be a risk if an OWF has a connection point in these regions. The template
PPA provides no safeguard to protect the
seller, such as compensation payable to
the seller if forced to curtail production to
prevent overloading of the transmission
grid. Further, there is no priority in purchasing energy from renewable sources over
conventional sources. Notably, for projects
to which grid connection agreements have
terms requiring investors to reduce or
suspend the plant output or capacity when
there is an overload of the power grid or an
excess of power, EVN has then signed PPAs
with the investors with provisions supplementing this requirement. This approach
may be widely applied by EVN going forward.
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6. REAL ESTATE
6.1 Rights over land to be secured
For the project’s feasibility study, the offshore wind developer must obtain a site
survey licence from the competent State
body.
For the construction of the offshore turbines and operation of the OWF, the project
company, once established in Vietnam by
the foreign investor, must obtain a marine
space assignment decision from the competent State body. The competent State body
is:
(a) the Prime Minister, for investment
projects which are subject to approval by
the National Assembly and the Government;
(b) MONRE, for investment projects which
are subject to approval by the Prime
Minister, inter-regional sea areas and
marine space outside six-nm sea regions,
investment projects to exploit and use
marine resources by foreign investors or
economic entities with foreign investment; or
(c) the People’s Committee of coastal provinces for the marine space within the
scope of the six-nm-sea regions.
For the construction and operation of onshore facilities (for example, transformers),
the project company needs to obtain a land
lease decision on onshore land from the
relevant provincial People’s Committee.
