Vietnam makes renewable energy goals achievable

Petrovietnam leaders survey an offshore wind power project in Norway

Irreversible trend

Transition to renewable energy has become an irreversible trend worldwide. World leading offshore wind power investors, including Equinor, Shell, Repsol, Total, BP, Chevron, and CNOC, among others, have fully transitioned to renewable energy projects.

Vietnam, with its high level of economic openness and global integration, has set goals and developed plans to advance its offshore wind power industry. According to the Power Development Plan VIII, approved by the Prime Minister in May 2023, the country’s offshore wind power capacity will reach about 6,000MW by 2030 and could increase further if technology advances quickly and if electricity prices and transmission costs are reasonable. By 2050, the capacity is projected to reach 70,000-91,500MW.

Setting ambitious goals for developing the offshore wind power industry brings significant benefits to Vietnam. Developing offshore wind power contributes to ensuring national energy security, reducing the need for fossil fuel imports, creating new jobs, fostering the growth of the marine economy, and developing energy infrastructure. It also plays a crucial role in reducing greenhouse gas emissions of Vietnam’s energy sector.

Petrovietnam is making concerted efforts to leverage all its existing advantages to participate in the supply chain and develop offshore wind power projects in Vietnam

Solid foundations, steady steps

According to the International Energy Agency (IEA), the oil and gas industry, with its offshore project experience, will contribute to sharing supply chains and technology. The involvement of oil and gas companies is key to rapidly establishing offshore wind power as a major industry.

Dr. Nguyen Quoc Thap, Chairman of the Vietnam Petroleum Association (VPA), noted that the experience gained in offshore exploration, extraction, design, fabrication of marine structures, offshore services, and the availability of facilities and human resources, along with knowledge of meteorology, hydrology, geology, and marine chemistry, provide favorable conditions for oil and gas companies to enter the offshore renewable energy sector. This involvement also helps optimize investment, avoid waste of national resources, increase efficiency, and reduce production costs.

Dr. Ngo Duc Lam, an energy expert and former Deputy Director of the Ministry of Industry and Trade’s Institute of Energy, agrees that in Vietnam, companies capable of participating in offshore wind power projects must be large-sized with extensive experience and strong financial capabilities. The Vietnam Oil and Gas Group (Petrovietnam) and the Vietnam Electricity Group (EVN) are capable of piloting offshore wind power development projects.

Since 2019, the state-owned Petrovietnam and some of its subsidiaries have focused on evaluating and researching energy transition to keep pace with trends and make the most of their strengths. This includes a focus on transitioning to green, clean energy by increasing the share of natural gas, producing hydrogen, and developing offshore wind power.

Petrovietnam is striving to leverage all available advantages to participate in the supply chain and develop offshore wind power projects in Vietnam, increase the local content of equipment, and reduce electricity production costs, laying the groundwork for future hydrogen energy development, said Dr. Le Manh Hung, Chairman of the Board of Members at Petrovietnam.

Petrovietnam units such as Vietsovpetro and PTSC of Petrovietnam have signed memorandums of understanding, confidentiality agreements, bilateral cooperation agreements, and survey/service contracts with offshore wind power investors worldwide. Petrovietnam has received numerous proposals from major global corporations like Equinor, Orsted, CIP, and Macquarie to collaborate on offshore wind power projects in the country. Petrovietnam has already signed memorandums of understanding with Equinor and CIP (Denmark) to explore opportunities for developing offshore wind power and other clean energy sources in Vietnam.

At the 26th United Nations Climate Change Conference (COP26), the Prime Minister of Vietnam expressed the nation’s political commitment to achieving Net Zero emissions by 2050. This commitment requires a shift toward a green, circular, and sustainable economic model.

Offshore wind turbine foundation construction site at the PTSC Port

In the new context, the Politburo issued Conclusion 76-KL/TW on April 24, 2024 to maximize the potential and experience of the country’s leading energy corporation, Petrovietnam, ensure energy security and promote the development of new and green energy sources. This conclusion addresses the implementation of Resolution 41-NQ/TW on the strategic development orientation of Vietnam’s oil and gas industry until 2025, with a vision to 2035, and outlines directions for the new phase.

Dr. Nguyen Duc Hien, Deputy Head of the Central Economic Commission, affirmed that Conclusion 76-KL/TW opens up new development opportunities for Petrovietnam by guiding the exploitation of the industry’s conditions and potential in developing renewable and new energy sources. For Petrovietnam, Conclusion 76-KL/TW outlines a strategy to transform the group into a national industrial-energy conglomerate, combining the development of traditional oil and gas sectors with pioneering roles in renewable and new energy fields. Key areas include offshore and nearshore wind power development, hydrogen production, participation in the LNG supply chain, and the development of energy equipment manufacturing, especially in renewable and new energy.

With over 3,200km of coastline and total sea territories of approximately one million square kilometers, Vietnam has the largest offshore renewable energy potential in Southeast Asia, of up to 599GW. Efficient exploitation of this new energy source would allow Vietnam to combine economic growth, energy security, national defense, maritime sovereignty assurance with low-carbon industrialization, aiming to achieve Net Zero emissions by 2050. Conclusion 76-KL/TW has opened a significant path for Petrovietnam to proactively develop strategies and roadmaps for the offshore wind power industry, helping Vietnam become a technology leader with a complete supply chain capable of competing internationally and seizing golden opportunities for robust growth in clean energy.