Do eagles stay to nest?

With great potential for wind power, especially offshore wind power, Vietnam is receiving the attention of the world’s leading big “eagles”. However, whether eagles stay in the nest depends on the investment environment.

Wind power in Vietnam has a slow start and lacks vitality despite its great potential. After 9 years of the Government promulgating a priority policy for wind power development, Decision No. 37/2011/QD-TTg dated June 29, 2011 on the mechanism to support the development of wind power development projects in Vietnam. , by the end of 2020, less than 500 MW will be put into operation; and the pioneer project mortgaged the bank.

2021 is considered a boom year for wind power in Vietnam with nearly 4,000 MW newly installed, creating a miracle for the region and the world in the context of Covid-19 sweeping everywhere, wreaking havoc in all economic sectors. socio-economic and the blockade and isolation have seriously affected the transportation and installation of super-heavy wind power equipment.

And 2022 can be considered a sad year for Vietnam’s wind power despite the great interest of large corporations both domestically and internationally and the desire to invest after the success of 2021.

Firstly, according to the statistics of the Global Wind Power Association, in 2022, the wind speed will decrease by 10 -15% compared to the 30-year average due to climate change, many wind power plants in Vietnam have failed to meet the production plan;

Second, the reduction in capacity of both wind and solar renewable energy plants occurs frequently due to line overload, with some plants being cut on average by up to 20%. The construction of power release lines is much slower than the initial schedule, causing a lack of synchronization between the power source and the grid;

Third, the excitement of investors is being tested when the policy for wind power development has expired on October 31, 2021 but there is no follow-up policy. The policy gap is discouraging Investors and especially the projects that have been delayed for more than 1 year, causing great damage to both finance and equipment;

Fourth, the race against the deadline of October 31, 2021 is leaving many great consequences. In addition to the compensation price being blown to new levels, equipment problems occurred during the first year of operation. There have been turbine fires, broken wings, fallen wings… Some experts say that these incidents are higher than the world average. The cause of these problems has not been announced, but the compliance with the transportation, installation and even operation procedures has not been underestimated than the pressure on progress.

For wind power to develop commensurately, sustainably and towards Net Zero by 2050 as committed by the Prime Minister at the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 26) , need to remove the following knots:

Regarding policies: There is a transition policy for projects that are late on October 31, 2021 and a new policy that is long enough for future wind power projects, especially offshore wind power.

About the grid: Renewable energy cannot be separated from the smart grid and regional linkage. However, this requires a huge amount of money. Therefore, it is necessary to clarify the power grid projects in the Power Plan 8 and it is necessary to adjust the law so that the private sector can participate, similar to the BOT form for the transport sector.

Regarding electricity prices: There should be an appropriate adjustment when the proportion of renewable energy is more and more. Currently, the more renewable energy it buys, the more losses the Electricity of Vietnam (EVN) Group will face, the more difficult it will be to invest in a new transmission grid and release capacity.

Wind power is a clean energy source and is a global trend to protect the environment. Vietnam has great potential for wind power, especially offshore wind power, and is receiving the attention of the world’s leading “eagles”. However, whether the eagle stays to nest or not depends a lot on the investment mechanism, policy and environment.

Source: Construction Magazine