Billion-US-dollar projects
During a recent discourse with Chairman Nate Franklin of Pacifico Energy (PE) Group, a U.S.-based entity specializing in renewable energy project development, Prime Minister Pham Minh Chinh affirmed a favorable reception towards the group's proposed investments within Vietnam's energy sector. Specifically, the Prime Minister acknowledged and welcomed PE Group's intentions to conduct surveys and implement an offshore wind power investment project within the territorial waters of Binh Thuan Province with its 192km coastline and the nation's highest wind energy resources.
The recent engagement and investment commitment from Pacifico Energy (PE) Group, coupled with the prior establishment of other prominent renewable energy investors, serves to bolster Binh Thuan Province's prospect towards its strategic objective of becoming a national energy hub, with a particular emphasis on green energy development. This convergence of investment activity is instrumental in realizing the province's envisioned role within the national energy landscape.
According to the People's Committee of Binh Thuan Province, currently, Copenhagen Infrastructure Partners Group in Denmark and domestic partners are promoting the La Gan offshore wind power project, with an expected capacity of 3,500MW. The project investor aims to become the first large-scale offshore wind power project in Vietnam, with a total investment value of about US$10.5 billion. When completed, the project can provide energy for more than 7 million households each year.
Moreover, Enterprize Energy Group (UK) has collaborated with various partners from France, Denmark, and the UK to advance the Thang Long Wind Complex, also referred to as the Ke Ga offshore wind power project located in Ham Thuan Nam District. This initiative boasts a total capacity of 3,400 MW and an overall investment of $11.9 billion, structured in multiple phases, with the potential to generate up to 15 billion kWh annually.
In addition to the aforementioned large-scale initiatives, Incotech Consulting Company Limited has received approval from the Binh Thuan provincial authorities to conduct research and surveys pertaining to the proposed Tan Thuan nearshore wind power plant project. This project, with an anticipated capacity of 168 MW, represents a projected capital investment exceeding VND5,500 billion (US$215.4 million). Furthermore, Incotech Consulting Company Limited is actively engaged in research and survey activities for the Thuan Phuoc wind power plant project in the offshore region of Binh Thuan Province, with a projected capacity of 104 MW and a corresponding investment exceeding VND3,800 billion.
A special mechanism is needed
The People's Committee of Binh Thuan Province announced that recently, many experienced and capable domestic and foreign investors have registered to develop offshore wind power projects in the locality with a total capacity of about 25,000MW.
The implementation of renewable energy projects in Binh Thuan province is currently facing difficulties and obstacles, according to Secretary of the Binh Thuan Provincial Party Committee Nguyen Hoai Anh. These challenges relate to policy mechanisms, adjustments to power development planning, and financial mechanisms. However, Secretary Anh noted that the province has great potential and advantages for developing renewable energy, particularly offshore wind power.
To implement these projects and address national energy requirements, the Binh Thuan provincial authorities have formally requested the Ministry of Industry and Trade to submit a report to the Prime Minister. This report proposed the inclusion and update of the aforementioned offshore wind power projects within the implementation plan of the National Power Development Plan VIII (PDP VIII).
Concurrently, the provincial authorities have further requested the Central Government to establish a specialized regulatory framework that would enable Binh Thuan to initiate pilot offshore wind power projects within the 2025-2030 timeframe. This strategic initiative is deemed crucial for the province to attain its stated objective of establishing itself as a preeminent wind energy hub within Vietnam in the foreseeable future.
During a recent working session with the Standing Committee of the Binh Thuan Provincial Party Committee, Permanent Deputy Prime Minister Nguyen Hoa Binh said that he advocated for the province's ambitious initiative to develop offshore wind power projects because Binh Thuan Province possesses significant potential for renewable energy advancement. It is crucial not to let this opportunity remain untapped. The province must harness this potential for growth. He supposed that if Binh Thuan Province can achieve 20,000 MW of renewable energy capacity, the province stands to generate an annual revenue of VND20 trillion.
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