The approved Vietnamese National Electricity Development Plan 8 outlines ambitious targets for the country’s renewable energy sector.

By 2030, the goal is to achieve a natural gas production of 30,420 MW, with 75% sourced from LNG. The potential capacity for offshore wind energy is set at 6,000 MW or more, contingent upon technological advancements and cost considerations.

In response, businesses are calling upon the government to enact policies that simplify the legal processes associated with offshore wind energy and liquefied natural gas (LNG) projects.

During a recent meeting, representatives from Vietnam Electricity (EVN) and energy corporation PVN emphasized the legal challenges hindering the progress of these projects. One major obstacle highlighted was the absence of a legal framework for offshore wind energy.

They pointed out that Nhon Trach 3&4, scheduled for launch between late 2024 and 2025, is facing hurdles in power purchase agreement (PPA) negotiations due to legal complexities.

The Bac Lieu LNG-to-power plant, approved for investment in 2020, has not made any progress, according to their statement.

The preparation phase for such projects, which includes contractor selection, PPA contract establishment, and approval processes, can extend up to eight years. Furthermore, the construction of offshore wind energy projects typically takes six to eight years post-survey.

These prolonged legal procedures pose a threat to meeting the 2030 deadline for project completion and operation. Consequently, representatives from the energy sector are proposing new regulations to clarify and expedite processes for both offshore wind energy and LNG projects.