Research Project on Renewable Energy Economics, Kyoto University




TOP > ディスカッションペーパー > No.70 Preliminary evaluation of obstacles and policy measures to facilitate offshore wind power expansion in Vietnam

No.70 Preliminary evaluation of obstacles and policy measures to facilitate offshore wind power expansion in Vietnam

March 2024
Ph.D. Candidate, Graduate School of Economics, Kyoto University

This study investigates the significant challenges impeding the advancement of offshore wind (OSW) power in Vietnam during the initial phase of development. The primary objective of this study is to address the increasing electricity demand and reach a target of 6 GW by 2030. The analysis of the existing literature indicates that the primary obstacles to OSW development in Vietnam are inadequate legal and regulatory frameworks and limited transmission grid capacity, rather than financial constraints. To obtain valuable insights from experts, semi-structured interviews were conducted with 16 professionals, including industry experts, international financial organizations, researchers, and legal advisors between November 2023 and January 2024. The majority of experts identified the absence of legal and regulatory frameworks, such as marine spatial planning, investor selection, electricity sales, survey licensing, and grid connection, as the primary obstacles to OSW development in Vietnam. Inadequate infrastructure, including transmission grids and ports, is also a significant challenge. To address these issues, researchers have proposed several recommendations, including 1) implementing pilot projects in various regions with feed-in tariffs before adopting competitive bidding, 2) establishing a regulatory authority to oversee OSW project development, and 3) designing a transmission grid system that can accommodate the generation of OSW power. Exporting OSW to Singapore offers a valuable opportunity to learn from real-world processes and to track the development of its legal framework. A bankable power purchase agreement is critical to attracting international OSW developers and financial institutions.

Keywords:offshore wind power, renewable energy, barriers, feed-in tariffs, auctions, transmission grids, private investment, climate change, net zero emission, Vietnam