The development of wind power industry in Vietnam
Vietnam is located in a geographical position quite favorable for the development of wind power, positioned in the monsoon climate region, shaped by a coastline of more than 3,000 km. 39% of the territory has wind speed greater than 6m / s, which is equivalent to the wind power potential of 513 GW. In particular, about 10% of them, considered to have huge wind power potential, are located in the Central provinces - Central Highlands and Southern region.
In the context of traditional energy resources such as fossil energy is gradually depleting and polluting the environment, the reserves of crude oil and traditional oil and gas fields such as White Tiger, Lion, Dragon, Ruby are falling; the trend of promoting electricity production from renewable energy has become an inevitable trend.
The revised VII electricity plan has planned the national electricity system's capacity to reach 60 GW by 2020, of which the proportion of renewable energy is 9.9%. However, the total capacity to date is only 56 GW, less than about 4 GW according to the approved figure.
Wind energy (For illustrative purposes only)
Then, according to the revised VII electricity plan, in the period of 2021 - 2025, it is expected to supplement the power supply of at least 32 GW, mainly from coal and gas power projects, but these projects have so far often 3-4 years behind, it is forecast that there will be 13 GW in 2023 and about 8 GW in 2025. In the 1931 report dated March 19, 2020, the Ministry of Industry and Trade proposed the government to supplement the planning of wind power projects, equivalent to 11.6 GW. At the same time, in Report No. 3299 / BCT-DL of May 8, 2020, the Ministry of Industry and Trade submits to the Prime Minister for consideration the prolongation of the application of fixed electricity price mechanism to wind power projects under Decision 39 to the end. On 31/12/2023 to create trust and motivation for investors to continue implementing the project.
With the preferential FIT price mechanism extended for 2 more years, it will create a driving force for the wind power market in Vietnam to develop after a “quiet” period due to low prices. In the recent petition, economists said that with great potential, wind power will be one of the important sources of electricity to contribute to energy security in the 2021 - 2025 period, to offset the shortage due to many other large power projects are behind schedule.
Speaking in the discussion program on Vietnam's macroeconomic forecast topic, Dr. Vo Tri Thanh, Former Deputy Director of the Central Institute for Economic Management and Research, said: “Clean energy - Renewable energy is a new area of concern in recent years. Electricity of Vietnam (EVN) determined that from 2020 to 2023, there will be a serious power shortage if the projects in the PDP VII continue to be delayed. The lack of electricity will become a threat to the production and business situation, causing double difficulties for the national economy. In addition to solving the nation's long-term energy problem, promoting the development of offshore wind power and the marine economy will contribute to protecting national security and sovereignty and territorial waters, attracting many investors and contractors from many countries around the world. In addition, it is also possible to take advantage of construction technology and equipment that contribute to the transfer and supplement of existing strategies and labor of the shipping and port industries, marine exploration and survey.
Understanding the market's demand for renewable energy, many Vietnamese businesses have entered this highly lucrative field such as Xuan Cau Group, BIM Group, FECON Company, Sigma Engineering JSC…
Strategic movement of Vietnamese businesses
With the strength of being one of the most prestigious M&E contractors in Vietnam, Sigma Engineering JSC has made smooth changes in accordance with the trends and needs of the general market. Right from the meeting to the beginning of the year, the Chairman and General Director of the Company - Mr. Nguyen Quang Ngoc emphasized the strategic vision when "conquering” the wind power field in the Southwest region. .
To date, Sigma is successfully completing the installation of wind power at the V1-3 wind farm project with a total capacity of up to 110MW located in Ba Tri District, Ben Tre Province, Vietnam. Once put into operation, the plant will not only help the government achieve wind power capacity of 2000 MW by 2025 but also support Vietnam to switch to a low emission energy industry.
Installation of Wind Turbines on V1-3 Ben Tre site
(According to Securities Investment; Vietnam Energy)
According to the assessment of Petrovietnam Securities Incoporated (PSI), the development of renewable energy is an indispensable trend in the future of the global in general and of Vietnam in particular. In Vietnam, it is expected that electricity demand will continue to increase significantly in the coming years to serve production activities, especially after Vietnam has officially reached CPTPP and EVFTA agreements as well as being evaluated as a country benefiting from the production shift of global businesses in the context of escalating US-China tensions.
There are nearly 30 electricity-producing enterprises on the stock market, most of them are coal-fired thermal, gas thermal and hydroelectricity. However, these enterprises are unlikely to increase their capacity in the coming time due to the influence of raw materials, hydrological conditions ... Therefore, businesses participating in receiving renewable energy waves will be able to realize them. There are many development opportunities when the clean energy market is a great place for increasing revenue and profits of enterprises in the future.