Research Project on Renewable Energy Economics, Kyoto University

Discussion Paper No. 70

Discussion Paper
Research Project on Renewable Energy Economics,
Graduate School of Economics, Kyoto University

Preliminary evaluation of obstacles and policy measures to facilitate offshore
wind power expansion in Vietnam

March 2024

Akiko URAKAMI
Ph.D. Candidate,
Graduate School of Economics,
Kyoto University

March 20241

Discussion Paper No.70

Research Project on Renewable Energy Economics, Kyoto University

Preliminary evaluation of obstacles and policy measures to facilitate offshore
wind power expansion in Vietnam

Akiko URAKAMI
Ph.D. Candidate, Graduate School of Economics, Kyoto University

Abstract:
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, semistructured interviews were conducted with 16 professionals, including industry experts, international financialorganizations, 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 theseissues, 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 andto 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

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1. Introduction
Vietnam has experienced rapid economic growth and urban development, which has led toa growing demand for electricity. Offshore wind (OSW) power is expected to meet thisincreasing demand, as it moves towards a low-carbon economy. Vietnam boasts a long coastlineof over 3,260 km and advantageous wind conditions, which include all areas with wind speeds
above 7 m/s at a height of 100 m, water depth less than 1,000 m, and a minimum size of 10
km2, making it an ideal location for OSW generation. The World Bank indicates that by 2030,
OSW will meet 5 % of Vietnam’s electricity demand in a high-growth scenario corresponding
to a 10 GW capacity and reduce fossil fuel reliance. By 2050, it will supply 27 % of Vietnam’s
electricity with a capacity of 70 GW. These statistics emphasize the significant opportunity forthe growth of OSW in Vietnam, making a meaningful contribution to the country’s futureenergy requirements (World Bank, 2021).
In May 2023, Vietnam’s Prime Minister (PM) approved the eighth power development plan
(PDP8) for 2021-2030 with a long-term vision until 2050 (see Table 1). The plan includes
ambitious targets for OSW to achieve 6,000 MW (4 % of the total capacity of power plants) by
2030 and between 70,000-91,500 MW (14.6-15.7 %) by 2050, alongside renewable energy(RE) sources, such as solar and onshore wind power. It estimated a huge investment capital for
power generation and transmission grids (see Table 2) (Government of Vietnam, 2023). The
aspiring goal for OSW power outlined in PDP8 demonstrates Vietnam’s dedication to reachinga net zero emissions target by 2050, as committed by the country’s PM at COP26 (Viet Nam
Government Portal, 2021).
Table 1. Power Generation Capacity in 2020 and Projected Capacity in 2030 and 2050
2020
Generation capacity (MW)/ percentage of total (%)

MW

2030
%

MW

2050
%

min.(MW)max.(MW)min.(MW)max.(MW)3.1

2.6(1) Gas- and oil-fired power (2050: LNG+Hydrogen)

9,030

13

37,33024.8

14,930(2) Coal-fired power

20,431

29.5

30,12720.0

029,461

42.5

67,45744.8

14,930

3.1

2.6

0

0

0

0

25,63232,432

5.3

5.5

0

0

0

0

20,90029,900

4.4

5.1

36,0167.5

6.2

60,05077,050

12.5

13.2

Traditional thermal power generation (1)+(2)(3) Converted coal (biomass, ammonia, etc.)(4) Hydrogen conversion (+Hydrogen-fired LNG thermal
power generation)(5) Hydropower(6) Onshore wind power(7) Offshore wind power(8) Solar power(9) Biomass
Renewable Energy (RE) (6)+(7)+(8)+(9)(10) Stored power (2030: Included pumped storage
power generation 2,400MW)(11) Cogeneration(12) Imports(13) Flexible power sources
Total (1)-(13)20,68530

29,346

19.5

630

0.9

21,880

14.5

0

0

0

6,000

4

70,00091,50014.6

15.7

16,64024

12,836

8.5

168,594

189,294

35.2

32.4

570

0.82

2,270

1.5

17,840.00

25.72

42,98628.5

304,659

0

0

2,700

1.8

30,650

0

0

2,700

6,015

1.3

1.0

363,859

63.6

62.3

45,550

6.4

7.8

1.8

4,500

0.9

0.8

11,042

1272

1.83

5,000

3.3

2.3

1.9

0

0

300

0.2

30,90046,200

6.4

7.9

69,258100

150,489100

479,229584,429100

100

Note: Recategorized and recalculated the data using the PDP8 (Decision 500/QD-TTg).

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Table 2. Planned investment capital for power generation and transmission grids (PDP8)
Types

2021-2030

annual capital

2031-2050

annual capital

Power generation

119.8

12

364.4 – 511.2

18.2 – 24.2

Transmission grids

15

1.5

34.8 – 38.6

1.7 – 1.9

Unit: billion USD

Currently, no operational OSW projects exist in Vietnam. Instead, existing projects
installed in the waters are nearshore and intertidal. The majority of the engineering,procurement, and construction (EPC) contractors for these 21 intertidal wind projects (779MW) were adopted by the feed-in tariff (FIT) and fully or partially reached their commercial
operation date (COD) in 2021. They were mainly from China (Williams & Zhao, 2023). Since
November 2021, the government of Vietnam (GoV) has not issued any financial incentives,
such as FITs and auctions, for all wind power projects, although GoV has a target of 21.8 GW
onshore wind power in addition to 6 GW OSW by 2030.
The study of OSW highlights several barriers including an underdeveloped regulatory
framework, imperfect bureaucratic procedures, and immature infrastructure and supply chains.
A power purchase agreement (PPA) mainly includes non-bankable elements such as off-take(curtailment) risks, termination, and international arbitration for most international investors(Do et al., 2022). However, previous investors who applied for FITs concluded such nonbankable PPAs with Vietnam Electricity (EVN), a state-owned company and a single buyer.
Despite executing a few nearshore wind power projects, Vietnam lacks the knowledge andskills required to pursue the official incentives for OSW. It is essential to enhance international
cooperation and establish partnerships with countries that have demonstrated expertise inadvancing OSW energy technologies. Furthermore, the challenges of transmission gridconnections and other infrastructure are within the scope of OSW projects. Integrating OSW
into the existing grid infrastructure requires substantial investment and careful planning toensure its reliability and stability (World Bank, 2021).
The timeline for completing OSW projects typically spans 6-8 years, from the initiation ofdevelopment to the start of construction, provided that all relevant regulatory approvals are
obtained. If the GoV requires several years to prepare for new regulations, it is unlikely to meetthe 2030 target. Therefore, it is essential for the GoV to commence pilot projects as soon as
possible (Dung, 2023; Williams & Zhao, 2023).
In February 2023, the PetroVietnam Technical Services Corporation (PTSC) of Vietnam
and the Sembcorp Utilities Pte. Ltd. (SCU) of Singapore finalized a cooperation agreement for
the export of energy derived from the OSW operating in Vietnam to Singapore. The agreement
was signed in conjunction with a visit by the Prime Minister of Vietnam to Singapore. The
initial capacity of energy export is approximately 2.3 GW and will be transmitted overapproximately 1,000 km of high-voltage subsea cables. Singapore has provisionally approved

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an import plan for 1.2 GW of OSW energy from Vietnam, which will help it achieve its goal ofimporting 4 GW of renewable energy by 2035. (Hoang, 2023; Trang, 2023).
The extent of academic research exploring the present state of OSW in Vietnam is limited,despite the evaluation of pertinent publications and documents from development banks andlegal firms, as delineated in Section 3. Conducting a study that identifies the initial barriers to
OSW projects and provides preferable policies at the initial stages of OSW power projects isvaluable. This study aims to investigate the most significant obstacles to OSW development in
Vietnam, which are inadequate legal and regulatory frameworks and the limitations oftransmission grids, rather than financial constraints.
The remainder of this paper is organized as follows. Section 2 introduces the methods usedin the study. Section 3 reviews the literature on the status of OSW-related activities led by the
GoV and relevant stakeholders and identifies significant barriers to OSW development in
Vietnam. Section 4 presents the qualitative analysis findings from interviews with experts,
discussions on critical barriers at the initial stage of developing OSW, and policy
recommendations for managing the barriers. The final section concludes the study andconsiders potential areas for further research.

2. Methodology
This study incorporated semi-structured interviews with experts on onshore and offshorewind-power development and transmission grids in Vietnam. Interviews were conducted in bothVietnam and Japan, with a mix of in-person and online sessions, between November 2023 andJanuary 2024. The author employed mixed methods of a purposive sampling technique to tap
into the network of stakeholders engaged in wind power development and related activities in
the country (Timmermans & Tavory, 2012) and snowball sampling after identifying several
candidates from the author’s professional connections. There were 16 experts (about 50/50 fromdomestic and international sources), including industry, financial institutions, researchers, andlegal advisors, aiming at participants in a balanced manner. The interviewees’ names andorganizations were treated confidentially.
The author inquired about the obstacles that hinder the development of OSW in terms oflegal and regulatory frameworks, financial incentives, potential funding sources, infrastructuresuch as transmission grids and ports, initial steps that could be taken, and platforms that affectthe policymaking process for OSW development using a questionnaire that was shared
beforehand (see Appendix 1). The interviews were carried out for roughly 50 to 60 minutes,
depending on the interviewees’ willingness to express their thoughts. Additionally, somespecialists with a technical background in transmission grids concentrated mainly on particularquestions regarding the current state and problems of Vietnam's power systems that are relevantto the development of OSW energy. The interviews were analyzed using the MAXQDA coding
system to uncover emerging topics and ideas and to identify connections and contradictions
among diverse thoughts, which helped in developing theoretical frameworks (Timmermans &March 20245

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Tavory, 2012). Three major obstacles were identified during the interviews: i) unclear uncertain
legal and regulatory landscapes, including a lack of authority), ii) scarcity of financial
incentives, and iii) constraints imposed by the transmission grid constraints on OSW projects.
In addition to the data generated by the interviews, various reports on issues related to OSWdevelopment and climate change, which were analyzed by different initiatives and research
institutions, multilateral development agencies, consulting firms, and newspapers, were also
complemented by a limited number of academic studies.

3. Literature Review
3.1 Overview of the offshore wind (OSW) power industry and its potential
The OSW energy sector has experienced considerable global expansion and progress inseveral countries. Significant investments in OSW by countries, such as China, the United
Kingdom, Germany, and Denmark, have resulted in increased installed capacity and costsavings. There are critical enablers of OSW development worldwide, including the facilitationof onshore and offshore grid deployment, design of seabed allocation mechanisms, streamlined
approval processes, reduction of auction price risk through indexation to inflation andcommodities, a transition from cost to value through consensus with generators and off-takers,alignment of seabed available for development with global long-term climate goals,
collaboration between public and private sectors, broader coordination for clean power
development, economic growth, job creation, and energy security, and promotion of efficient
operations through a dedicated leasing authority (Williams & Zhao, 2023).
3.2 Exploration of the legal framework surrounding offshore wind power for Vietnam
Vietnam lacks a comprehensive legal and regulatory framework focusing on OSW projects.
According to the survey and follow-up semi-structured interviews conducted by the researchers
between January and September 2021, all survey respondents identified an insufficiently
developed policy framework and incomplete bureaucratic procedures, including incomplete
leases and licenses, as the main policy barriers to offshore wind projects in Vietnam. There wereno specific targets for OSW development before 2020, and the three-year FIT duration for OSW
generation was too short, accounting for 44 % of the survey respondents. Furthermore, they
pointed out that no financial mechanisms encompass significant initial expenses, which havegiven relevant stakeholder uncertainty since the FIT expired in October 2021 (Do et al., 2022).
Vietnamese researchers mention that policies on investment procedures, power purchases,
and sale contracts/prices between project investors and EVN (a single buyer) have not beenthoroughly promoted. They also emphasize that proper government support and transparent
legal procedures are inevitable (Doan & Tran, 2022).
International researchers point out the uncertainty of the future FIT and auction mechanism
after the previous FIT expired in 2021, and the necessity of an effective marine spatial plan

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Discussion Paper No. 70(MSP) that allocates appropriate zones for OSW projects and relevant infrastructure, such as
ports and undersea cables (Nguyen et al., 2022). Vietnam has not approved the national MSP,
which is inevitable for OSW development, because several factors, such as insufficient data andexpertise, and inconsistency with existing plans, lead to delays in project approval (Phan, 2023).
There seems to be a rigid legal framework in several dimensions, including the allocation ofrights on seabed licensing; however, the GoV does not have specific regulations that can give
developers clear steps (Do et al., 2022).
The article on OSW in the Asia-Pacific region presents several benefits of introducing a
FIT in the early stage of OSW deployment if the government considers the balance between thenecessity of incentives and the cost burden for the long term. FIT can secure guaranteed
remuneration for the electricity produced by OSW generators and provide investors withpredictable and stable revenues. This can contribute to attracting investment in the early stagesof development, when the technology is still relatively unsure and expensive. Additionally, FIT
can help enhance industry and establish an OSW market (Hughes & Longden, 2024).
3.3 Examination of the transmission grid constraints facing OSW projects in Vietnam
Vietnam needs to upgrade its transmission grids to accommodate large-scale OSW;
however, it is estimated to take at least five to ten years from design to construction, and aconsiderable investment (Phan, 2023; Williams & Zhao, 2023). The revised PDP7 assessment
report (MOIT, 2022) revealed that investment in the construction of 500-220 kV power grids
exceeded the approved amount, and some projects faced delays owing to factors such as
financial constraints, technical construction solutions, postponements of other relevant works,
including power plants and substations, and varying land compensation and support policies
among provinces. In recent years, households have constructed temporary houses in foundation
locations and corridors to claim compensation, which has caused project delays.
The northern region of Vietnam faces a power deficit, whereas the southern region has apromising wind and solar energy potential. Building transmission lines that connect the tworegions is crucial for development. PDP8 estimates that constructing these lines will require
US$1.5 billion annually until 2030 and US$1.9 billion annually until 2050. Historically, EVN
has been responsible for grid maintenance; however, the Electricity Law now allows private
sector companies to operate grids if they finance their construction. However, EVN's financial
limitations have led to a loss of over 1.12 billion in 2022. Therefore, private sector investment
is essential for expanding the transmission grid network (Government of Vietnam, 2023;
Nguyen, A, 2023).
According to a report from EVN on December 1, 2023, the Deputy Prime Minister ofVietnam, Tran Hong Ha, authorized the National Power Transmission Corporation (EVN NPT)to invest in two 500 kV transmission line projects. The first project, Quang Trach-Quynh Luu,spans approximately 225.5 km and connects the Quang Trach Power Center in Quang Binh
Province to a point 300m from the Quynh Luu 500 kV substation in Nghe An Province. The
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second project, Quynh Luu - Thanh Hoa, spans approximately 91.8 km and extends from apoint 300m from the Quynh Luu 500 kV substation to the Thanh Hoa 500 kV substation,
crossing Nghe An and Thanh Hoa provinces. Both projects aim to improve the transmission
capacity, guarantee power supply to northern regions, alleviate existing transmission lines, andtransmit energy from northern central power plants to the national grid. The total cost of theQuang Trach-Quynh Luu project is estimated to be VND 10,110.915 billion, and the total costof the Quynh Luu-Thanh Hoa project is estimated to be 4,116.027 billion. The deadline forcompleting these projects is June 2024, with an implementation period spanning 40 months
from 2023 to 2025 (EVN, 2023a). They are part of PDP8, but the Prime Minister's request
expedited the entire process for the 500 kV transmission line, as confirmed by interviews withexperts.
A report by GIZ (2021) identified the main obstacles to the development of OSW power
projects in Vietnam, including the need for grid expansion and the potential for grid congestion
owing to the geographic distribution of wind resources. To overcome these challenges,
measures such as investing in transmission infrastructure, using power flow models to evaluate
grid capacity, and implementing regional differentiation in FIT and market zones can facilitate
the integration of OSW power into the energy system and ensure a reliable and efficienttransmission grid to support renewable energy generation.
Another study (Nguyen et al., 2022) indicated that insufficient infrastructure plans,
including ports and undersea transmission lines, are required for large-scale OSW farm
deployment, limitation of potential transmission grids, and curtailment matters, especially inprovinces where many solar power farms are installed and curtailed. Flexible solutions are
required to accommodate higher shares of RE sources whose power output fluctuates.
According to international researchers, Vietnam is yet to establish marine planning andregulations for connection points between offshore wind farms and onshore grids. In addition,
the country's inadequate transport infrastructure hinders the delivery of heavy and bulky windturbines and towers. For grid connectivity from OSW sites, the research indicates thatmandating OSW developers to connect their farms to the onshore grid would be more
appropriate in the context of Vietnam. Connection from OSW sites to the national grid would
be another option if the Electricity Law and relevant regulations allowed the private sector toinvest in the transmission grid from the onshore connection point to the national grid (Do et al.,2021). In Japan, OSW power developers are responsible for building the necessary transmission
infrastructure to connect OSW farms to the national grid, whereas the government and regional
utility companies play important roles in setting regulations and technical standards andmanaging the integration of OSW power into the broader grid infrastructure (Li, 2022). Taiwan
also applies for the same approach as Japan (Gao et al., 2021).

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4. Findings and Discussion
Based on an analysis of various documents and interviews, this section discusses the criticalbarriers to developing OSW in Vietnam and provides possible policy options with a focus on
the initial phase.
4.1 Barriers to OSW development at an initial phase
4.1.1 Barrier to uncertainty legal/regulatory frameworks
Vietnam faces numerous legal and regulatory hurdles impeding the growth of OSW.
Despite setting a goal for RE, including OSW, in PDP8 released in May 2023 for 2030 and
2050 (see Table 1), the government of Vietnam (GoV) has yet to approve a plan for
implementation (as of March 2024). According to the survey respondents, the Ministry ofIndustry and Trade (MOIT) has reportedly collaborated with relevant provinces to establish
specific targets aimed at facilitating the completion of the implementation plan.
The results of the survey indicated that approximately 90 % of the 13 respondents identified
insufficient legal and regulatory frameworks, such as inadequate investment selection
mechanisms, electricity-selling schemes, seabed leasing, survey licenses, and grid connections
as major obstacles to the early development of OSW in Vietnam (see Figure 1), as further
elaborated on in the subsequent paragraphs.
Figure 1: Three most critical barriers for GoV in the initial OSW development in Vietnam1

Several experts expressed deep concerns about the absence of regulations for OSW projects andthe unclear roles of different ministries in managing the selection process of developers,

1

The majority of respondents selected three options from A) to J) and ranked them in order of preference, while someindividuals chose fewer than three or more than three options without specifying a ranking.

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including the granting of investment licenses and other additional licensing procedures. Table
3 presents a thorough breakdown of the responsibilities allocated to each ministry, obtained
through semi-structured interviews. The following paragraphs provide additional informationon these details.
Table 3: Summary of each role to manage regulations
Regulations/rules

Responsible ministries

Expected key tasks

Marine spatial plan (MSP)

MONRE

Allocation of specific capacity for each region

Seabed survey license

MONRE

Decide selection criteria for developers to do seabed survey and theapproval process to grant license

Investor selection

MPI

Decide multiple selection criteria for investors to develop OSW

Incentives (e.g., FIT, etc.)

MOIT

Regulate FIT for pilot projects before introducing competitive
bidding (auction) (see 4.1.2)

Grid connectivity

MOIT/EVN

Grid connectivity rules and a timetable for transmission upgrades

According to several experts, it is crucial for the GoV to prioritize updating its MSP, led
by the Ministry of Natural Resources and Environment (MONRE), to precisely identify thedevelopment blocks (locations) for OSW farms. For instance, the northern region should havea capacity of 2 GW, the central region should have a capacity of 1.5 GW, and the southern
region should have a capacity of 2.5 GW, based on the 2030 goal. An international expert has
projected that the simplified MSP will likely be officially unveiled either by the conclusion of2024 or the start of 2025, based on the ongoing situation. Several experts mentioned that
MONRE recently received comments from coastal provinces that could have potential OSW
power projects and reflected them in the draft MSP.
In light of the MSP revision, industry experts stressed the importance of MONRE inallocating seabed licensing rights, as outlined in Decree 11/2021/ND-CP on the assignment ofcertain sea areas to organizations and individuals for exploitation and use of marine resources.
A substantial number of survey respondents reported that there was considerable debate among
stakeholders regarding the use of exclusive or non-exclusive project survey licensing methods
for potential OSW locations. However, the GoV has recently changed its stance, shifting froma non-exclusive to an exclusive licensing method for up to three years (as of the end of
November 2023). Many private companies, including large-scale OSW firms, have actively
advocated that GoV grant licenses to specific agencies or companies to avoid potential
confusion and conflicts between different survey activities. By streamlining the survey process
and enabling efficient data collection, this approach can help ensure the successful
implementation of OSW projects. However, experts have expressed concerns about thepotential perceptional risks of granting a direct survey license to a private company without abroader procurement framework for OSW. It has been suggested that GoV conduct their own

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surveys on upstream oil and gas to ensure transparency and accessibility of information.
However, the government’s ability to secure a necessary budget is uncertain. As an alternative,
development agencies, such as the World Bank, could support the GoV in surveying thepotential project seabed.
An expert in the legal realm has raised the issue of selecting companies to carry out seabedsurveys under Decree 11/2021, and the determination of suitable investors for a project involves
two distinct procedures. In essence, a competent firm for the survey does not necessarily equate
to ideal investor choice. Generally, it falls under the purview of the Ministry of Planning andInvestment (MPI) to make investor selection. As of November 2023, the MPI has been actively
engaged in revamping the regulations governing the selection of investors in power projects
that encompass those utilizing OSW. Several experts have pointed out that MPI needs to set
criteria to select investors for OSW projects, which are at least three pillars: 1) track record(past experience), 2) commercial stability (investors’ capacity to mobilize finance), and 3)
technical plan competency.
The study participants highlighted a lack of decision-making authority for investment
policies and clearly defined administrative procedures at both the central and provincial levels
as additional weaknesses in the regulatory framework. Although the MOIT has taken on the
responsibility of coordinating with the provinces for solar and onshore wind power projects
over the past four to five years, primarily by developing and implementing incentives such as
the feed-in tariff (FIT), it is necessary for several other ministries, including the Ministry of
Natural Resources and Environment (MONRE), the Ministry of Planning and Investment (MPI),
and the Ministry of Defense, to update or develop regulations for OSW power projects.
According to various experts, it is crucial for the GoV to establish a specialized authority tasked
with formulating comprehensive investment policies. Moreover, one expert suggested that the
GoV establish a steering committee for OSW, similar to the steering committee for key nationalenergy projects that was established in November 2023. The committee for OSW oversees all
aspects and addresses cross-sectoral issues as a national focal point.
The survey findings revealed divergent views on the grid connectivity rule, despite theabsence of any regulatory framework established by the GoV. A significant number of
respondents opined that OSW developers should construct a transmission line from the OSW
site to the onshore connection point (substation), while the National Power Transmission
Corporation (EVN NPT) or local power companies should be responsible for upgrading orbuilding the transmission line from the onshore substation to the national grid. Nonetheless, thedevelopers expressed apprehension about the potential risks and lack of control because thesubstation would be required to commence transmitting power without delay.
Experts, both domestic and international, concur that developers typically bear the expenseof connecting offshore farm substations to onshore connection points. However, one expert
expressed apprehension about the potential risks that international developers may face whennegotiating land acquisition, resettlement, and compensation with localities, if they are required
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to construct transmission lines from OSW plants to the national grid instead of onshore
connection points. Another international expert proposed that if a transmission line is shared
among multiple projects, the GoV should manage it. In the event that OSW developers are
responsible for constructing the transmission grid, the GoV or EVN NPT must cover the costand oversee its operation and management.
In addition, the interviewees stressed the need for a timetable for upgrading thetransmission grids to connect with existing solar and onshore wind power farms as well as
potential future OSW farms. This would allow GoV to transport RE power from the central andsouthern regions to the northern regions, where power generation is inadequate. However, most
respondents expressed concerns about the financial capabilities of EVN NPT to construct
additional transmission grids for OSW power generation.
4.1.2 Barrier to lack of incentives
This section mainly concentrates on incentives related to tariffs and pricing, which can also
be viewed as part of the regulatory framework, as well as financial constraints. According to
the findings, approximately one-third of the respondents identified G) lack of incentives, suchas FIT and auctions, as a significant obstacle in the early stages of their OSW projects (seeFigures 1 and 2).
Figure 2: Three most critical barriers for GoV in the initial OSW development in Vietnam

According to the majority of respondents, who were primarily industry professionals, theGoV should initiate the execution of FIT for the initial few pilot projects, which would range
in size from approximately to 1-2 MW to 1-2 GW in total. The primary objective of these pilot
projects was to gain a comprehensive understanding of the actual costs associated with OSW
projects, particularly those that are cost-effective. Many of the respondents emphasized theimportance of implementing a few pilot projects, such as one in the north and the other in thesouth, which would be carried out by state-owned enterprises such as Petro Vietnam (PVN) and
Vietnam Electricity (EVN), in collaboration with experienced foreign developers who have
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previously developed OSW power projects in other countries. The majority of respondentssuggested that, given that PVN has been developing an LNG project in the south, it would be
more appropriate for them to undertake an offshore pilot project rather than EVN.
Pilot projects serve as benchmarks for the development of a new pricing mechanism, suchas auctions, for future negotiations. Undertaking pilot projects enables relevant stakeholders,
including ministries, investors/developers, and suppliers, to learn from these projects andincorporate the insights and lessons gained into new regulations, such as auction mechanisms.
The participants in the survey emphasized that FIT offers investors certainty and enables themto assess business cases before the establishment of a new market in Vietnam. In November
2018, the GoV introduced revised Feed-in Tariff (FIT) rates for onshore wind power projects(8.5 US cents/kWh) and OSW projects (9.8 US cents/kWh), with a commercial operation date
(COD) of November 1, 2021 (Government of Vietnam, 2018). Some experts have suggested
that the regulated FIT for OSW was intended for nearshore or intertidal wind projects, rather
than actual OSW farms, as there were no specific regulations for the latter, and the three-year
period was deemed insufficient for the development of OSW projects. According to two experts
with technical backgrounds, the appropriate initial FIT was estimated to be in the range of 1415 USD cents/kWh. The consensus among most interviewees was that the process ofconstructing an auction mechanism for GoV takes several years, owing to the extensive
preparatory work that is required, such as data gathering and infrastructure improvements.
Despite this, the GoV has yet to launch a pilot auction scheme for solar and onshore wind power
projects since the FITs for these sources expired in 2020 and 2021, respectively. Some industry
professionals anticipate that auctions will be introduced by the GoV in 2025 or 2026. Twoexperts from the field used the example of Taiwan's successful OSW development as a positive
illustration. Taiwan initially implemented FITs for the first 3 GW of OSW capacity, and thentransitioned to an auction system.
According to a prominent international expert, the GoV has experienced a challenging
situation with FITs, particularly for solar power, in recent years. This is attributed to thedetention of many officials from the Ministry of Industry and Trade (MOIT) and other relevant
ministries and provinces as a result of an anti-corruption campaign led by Nguyen Phu Trong,
the General Secretary of the Communist Party of Vietnam. The reason for these arrests was thatthese officials granted more approval to solar investors than the revised target (800 MW) set by
the revised Power Development Plan 7 (PDP7) (Thu, 2023). The majority of the respondents
expressed concern about insufficient coordination between various ministries and provinces
during the approval process. Consequently, the installed solar power capacity exceeded thetarget of ten times PDP7, resulting in inefficiencies and curtailment due to the absence oftransmission infrastructure in certain provinces. The international expert opines that the MOIT's
position to lead the energy sector is vulnerable, as officials are hesitant to make decisions andfear accusations of corruption. The MOIT plans to determine the appropriate pricing schemes
for solar and onshore wind power through competitive bidding, similar to other economic
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activities, but half of the survey respondents expressed concerns that it would be difficult for
the GoV to approve a new incentive for RE, including OSW, until the anti-corruption campaign
is completed.
The majority of respondents highlighted the need for the government to amend the powerpurchase agreement (PPA) with EVN, a state-owned enterprise and exclusive purchaser, inorder to enhance its attractiveness to international investors and financial institutions for OSW
projects. According to Figure 2, the findings indicate that international experts consider F) nonbankable model PPA to be a more critical concern than Vietnamese stakeholders. The current
PPA utilized for solar and onshore wind projects includes terms that are not bankable, such as
absence of termination, international arbitration, force majeure, and government guarantee. Aninternational expert indicated that the Prime Minister requested that the private sector industry
association, the Vietnam Business Forum (VBF), work on a comprehensive PPA framework,
not only for OSW. The private sector also regards off-take (curtailment) risk as a significant
issue; therefore, it would require a dependable grid development plan to ensure that the chosen
projects can be integrated into the grid. Several international industry experts have emphasizedthat the investment scale of OSW farms is considerably larger than that of past mega-solar andonshore wind power projects, making it essential for the government to provide bankable PPA
to OSW project investors.
4.1.3 Transmission grid constraints
The data shown in Figures 1 and 2 suggest that approximately one-third of the participants
identified E) insufficient infrastructure, particularly the transmission grid, as a significant
obstacle during the early stages of the OSW development.
Experts in technical fields have emphasized the need for a GoV to enhance its transmission
grids. The primary reason for this is the imbalanced demand for electricity between the northernand southern regions, which results in insufficient transmission infrastructure to transport powerfrom south to north. Consequently, the northern regions suffer from electricity shortages due tohigh demand, whereas the central and southern regions have sufficient capacity to meet demand.
Moreover, the majority of existing solar and onshore wind power plants are located in thecentral and southern regions, with the potential for future solar and wind power generation in
the same areas. Although there is a surplus of electricity in the south, the transmission capacity
for transferring electricity from south to north is inadequate. In June 2023, a severe dry situationin hydro dams and unexpected outages at thermal power plants led to a generation deficit,
causing blackouts in the northern provinces for ten days. The GoV plans to increase the capacityof gas and LNG plants from approximately 9,000 MW in 2020 to 37,000 MW in 2030. However,the construction of these facilities is time-consuming. To prevent blackouts in 2024, the GoV
intends to prioritize increasing hydropower import capacity from Laos and China.
A recent trend has witnessed a decrease in investment for the transmission grid, despite an
overall increase in the Vietnam Dong per kilowatt-hour budget. This has led to a reduction in
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power output, particularly in the Ninh Thuan and Binh Thuan provinces, where solar andonshore wind power plants are concentrated. According to the EVN press release (EVN, 2023c),
the percentage of RE output for the first ten months of 2023 is only 13.5 (see Table 4), which
is significantly lower than the 25 % RE percentage of the total installed capacity in 2020 (seeTable 1). Technical experts have expressed grave concerns about the insufficient transmission
grids in the southern region to transport power to the north despite the abundant potential for
OSW in the region.
Table 4: Accumulated power system’s output from January to October in 2023
Types

Output (billion kWh)

Percentage of the total capacity

Hydropower

66.74

28.5 %

Coal thermal power

107.7446.0 %

Gas turbines

22.9

9.8 %

Oil thermal power

1.23

0.5 %

Renewable energy

31.58

13.5 %

Imported electricity

3.56

1.5 %

Others

0.38

0.2 %

234.13100.0 %

Source: EVN (2023)

2

Most interviewees expressed that the National Power Transmission Corporation (EVN
NPT) does not possess adequate financial resources to construct a sturdy, versatile, dependable,
and secure power grid. According to reports, EVN suffered substantial losses amounting to over
28.7 trillion VND (approximately 1.18 billion USD) during the initial eight months of 2023
(EVN, 2023b), and 1.12 billion USD in losses in 2022 (Nguyen, A, 2023). PDP8 for 2021-2030
indicates that Vietnam necessitates an annual investment of 1.5 billion USD in the transmission
grid. However, technical experts have pointed out that EVN NPT has not invested even 400500 million USD annually in 2022 and 2023, and it is unclear where the additional funds will
come from.
As reported by technical experts, prompt execution of measures, such as digitalization toenhance the lifecycle of assets, demand management, ancillary services, and power quality
improvements, is essential to increase the capacity of the grid. This facilitates the integration of
additional RE sources and other power sources. Although grid-scale storage and energy storage
are also significant, the uncertainty in battery prices remains a factor to consider.
Experts suggest that the GoV should consider implementing regulations for EVN and EVN
NPT to charge transmission, distribution, operation, and ancillary fees to all Independent Power2

The output of renewable energy consists of solar power (22.35 billion kWh), wind power (8.52 billion kWh) and others(https://en.evn.com.vn/d6/news/Operational-situation-in-October-2023-andobjectivesand-tasks-in-November-2023-66-1423770.aspx).

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Producers (IPPs), including renewable energy developers, from a cost recovery and profitability
perspective. Although the GoV has discussed the application of direct power purchaseagreements (DPPAs) to renewable energy projects in recent years, no pilot project has been
initiated. Both international and domestic investors have expressed an interest in applying the
DPPA scheme, including charge payments. DPPA could potentially serve as a means for GoV
to charge various system-related costs to IPPs.
4.1.4 Limited finance channels
Limited access to financial channels was identified as one of the three main obstacles by
two experts from Vietnam. On the other hand, numerous international experts believe that once
a GoV can create a bankable power purchase agreement (PPA), OSW projects will attract
international investors and financiers. Furthermore, the interviewees indicated that GoV
preferred to seek less concessional funding rather than increasing public debt. Owing to thefinancial losses incurred by EVN and the difficulties faced in obtaining financing, two expertssuggested that Official Development Assistance (ODA) is more suitable than mobilizing private
finance. Some international experts have shown that it is difficult for EVN to utilize ODA loans
to upgrade transmission grids because of the absence of on-lending decrees for state-owned
enterprise investments (e.g., Decree 973 and Decree 1044). In light of the GoV's ambitious
target for 2030, it will be challenging to achieve without implementing rigid regulations andcollaborating with international investors and financiers.
4.1.5 International cooperation
The initial international collaboration endeavor for Vietnam will entail the Singapore
project, in which PetroVietnam Technical Service Corporation (PTSC), a subsidiary of PetroVietnam (PVN), has been designated to invest in an OSW project to provide green electricity
to Singapore in accordance with the Joint Development Agreement. Several international
experts have suggested that this initiative presents a promising opportunity for the PTSC to
fulfill the technical requirements and showcase its capabilities to Singaporean authorities, while
it will play a crucial role in contributing to OSW pilot projects and advancing the developmentof OSW policy frameworks in Vietnam.
The development of OSW power in Vietnam has been significantly affected by numerous
platforms. A comprehensive overview of each platform is presented in Table 5. Despite
acknowledging from international experts of the benefits of sharing knowledge and bestpractices with the GoV, efforts have mainly been limited to dialogue, and have yet to result in
concrete actions. It is widely recognized that a more integrated official coordination platform
3

Decree 97 /2018/ND-CP dated June 30, 2018 on on-lending of the government’s ODA loans and foreign concessionalloans (https://lawnet.vn/en/vb/Decree-97-2018-ND-CP-on-lending-of-the-government-s-ODA-loans-and-foreignconcessional-loans-5F5DD.html)
4 Decree No. 104/2007/ND-CP of June 14, 2007, on provision of debt collection services (https://lawnet.vn/en/vb/104-2007ND-CP-14E4C.html)

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is needed among key ministries (e.g., MOIT, MPI, and MONRE) to address critical regulatory
issues, including marine spatial planning and tendering pro, in addition to existing platforms.
Table 5: A list of platforms to support GoV on energy-related matters
Name

Led by whom?

Focus on OSW?

Vietnam Energy

MOIT with donors

Partnership Group(e.g., EU, GIZ, WB,(VEPG)

etc.)

Just Energy

MONRE with IPG

Technology and

GoV (MONRE)-led donor coordination platform

Transition

led by G7+Norway

Energy WG

Providing loans with low-interest rates by 2030

Partnership (JETP)

and Denmark

covering OSW

Issued Resource Mobilization Plan in December 2023

Technical WG
on OSW

Glasgow Financial
Alliance for Net

Key features (Summary from the interviewees)
GoV (MOIT)-led donor coordination platform
Systematic approach through dialogue

Helping connect finance institutions for JETP projects
Private sector-

Leading the bankable PPA discussion with VBF

Zero (GFANZ)
Vietnam Business
Forum (VBF)

Private sector

Global Wind

Private sector

Energy Council(mainly wind power(GWEC)

developers)

Power & Energy
WG

Covers onshore& OSW

Active advocacy activities
Focusing on overall energy (including OSW)
Leading the bankable PPA discussion with GFANZ
Active advocacy activities
Providing technical advice with GoV
Sharing experiences in developed countries via WS

Most interviewees expected JETP to significantly impact Vietnam's OSW power
development from a political standpoint. Their Resource Mobilization Plan (RMP), launchedat COP28 on December 203, prioritized the transmission grids, energy storage, and OSW. The
JETP fund, totaling $15.5 billion by 2030, can support grid development and OSW power in
Vietnam. Some experts also believe that it can support OSW power pilot projects. However, theuncertainty and invisibility surrounding JETP's contributions to concrete projects through the
RMP and the extent to which private companies and banks could commit remain concerns formost interviewees.
4.2 Implications for OSW development in an initial phase
Vietnam's growing electricity demand, driven by its economic growth, has led the country
to shift towards green energy sources to achieve its net-zero emissions targets by 2050. During
COP26 in 2021, the Prime Minister committed to this goal. In May 2023, the government
approved the eighth Power Development Plan (PDP8), which includes targets of 6 GW foroffshore wind (OSW) power generation by 2030 and 70-91.5 GW by 2050. The transition togreen energy is crucial for promoting a low-carbon economy. Although there are currently nocomprehensive legal or regulatory frameworks for OSW projects in Vietnam, meeting the 2030

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target will be difficult because of the lengthy construction process for OSW power farms.

This

process typically takes six to eight years to complete, following administrative procedures, as
observed in other countries. Additionally, Chinese researchers have indicated that the general
construction duration for OSW projects is 2-3 years (He et al., 2022). There is also a gap
between Vietnam's commitment to international climate change agreements and the actual
implementation of renewable energy (RE) projects within the country.
Table 6 provides a reference for Vietnam's transition by illustrating the actions taken by
two neighboring countries.
Table 6: Neighboring countries’ experience in OSW policies
targetTaiwanJapan

5.7 GW by 2025 and 15 GW by 2035

30 GW by 2030

- GoV-led approach- One-stop-shop approach (“Central Method”)(Ministry of Economic Affairs (MOEA) andsite

Bureau of Energy (BOE) have been involved in

identification

identifying potential sites for OSW projects,
including conducting preliminary site selection,
FS, and EIA)

interministerial
platforms

Incentives

Established platforms for relevant ministries- METI, MLIT, and MOE are involved in(MOEA and BOE) to coordinate OSW power

streamlining permitting requirements anddevelopment

ensuring regulatory clarity for OSW projects.

- pilot projects with 4 MW in 2016;- pilot projects;- FIT from 2016; and- FIT in 2014; Readjusted FIT in 2021 for fixed- a tendering in 2017 and 2019

foundations and floating foundations;- a tendering from 2021

- The Taiwan Power Company (TPC) regularly- Based on the Central Method, the government

grid

dispatches correspondence that delineates thehas led the grid connectivity.

connectivity

project capacity, commissioning year, andconnection points for OSW projects.

Sources: Taiwan, R.O.C., 2018; Gao et al., 2021; GWEC, 2021; Li, 2022; Interview with a Japanese expert, 2024

The Vietnamese Ministry of Natural Resources and Environment (MONRE) is working on
revising two regulations, the marine spatial plan (MSP) and the seabed survey licensing process,to identify suitable locations for offshore wind (OSW) power projects. The MSP is used toallocate potential sites based on the eighth power development plan (PDP8), whereas the seabedsurvey licensing process is closely tied to future OSW power projects for the private sector.
However, the regulations for investor selection are managed by the Ministry of Planning andInvestment (MPI) and are not directly related to the outcome of the seabed survey licensing

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process. Even if a private firm conducts a survey of a specific seabed area, this does notnecessarily mean that the firm will be able to implement OSW power farms based on the resultsof the survey. This inconsistency among the regulations of different ministries is an example ofthe challenges faced in identifying suitable locations for OSW power projects. In Taiwan, twogovernmental agencies, MOEA and BOE, have led the identification of potential sites incollaboration with other ministries, including preliminary site selection, feasibility study (FS),and environmental impact assessment (EIA), which is a similar approach to that adopted inJapan (see Table 6).
Coordinating legal and regulatory frameworks for OSW power projects often involves
collaboration between multiple government agencies in two countries (see Table 6). According
to a news article (Viet Nam New, 2024), Deputy Prime Minister Tran Hong Ha agreed toestablish an interdisciplinary working group (WG) for OSW power development led by the
MOIT, including officials from relevant ministries. The main goal of the WG is to identify andrectify any shortcomings in current regulatory frameworks, particularly in the areas of marine
territory allocation to organizations and individuals using non-state funds for exploration,
surveying, bidding, and investor selection. This interministerial coordination WG among
ministries could contribute to reducing the inconsistency of multiple regulations and expediting
readiness for OSW projects, which was also identified in the interviews.
Implementing OSW power projects can benefit the GoV by launching pilot projects acrossvarious regions of the country. During the pilot project phase, a fixed feed-in tariff (FIT) wasused in Japan and Taiwan before transitioning to a competitive bidding mechanism with a feedin price (see Table 6). Some international interviewees expressed that MOIT officials wereinterested in adopting a bidding mechanism to ensure a transparent and fair investor selection
process, as they had negative experiences of implementing the FIT for solar and onshore wind
power projects in the past. Despite considering a bidding mechanism for solar and onshore wind
power projects over the past three–four years, no pilot bidding projects have been initiated. To
prepare for bidding in OSW power projects, survey respondents emphasized the need forextensive preparatory work, such as revising regulations and upgrading transmission and otherinfrastructure, through coordination among relevant ministries and provinces. Two experts
noted that introducing a bidding mechanism in a new market poses significant risks andchallenges for both government and developers. It would be prudent for the GoV to launch pilot
projects with fixed FITs to gain valuable lessons that can be applied to future bidding schemes.
To attract international investors and financial institutions, such as those involved in the
JETP and GFANZ initiatives (as shown in Table 5) for OSW power projects, it is essential torevise the non-bankable terms used in past solar and onshore wind power purchase agreements(PPAs) and adhere to international standards. Domestic developers who had no alternative but
to accept non-bankable PPAs for their solar and onshore wind power projects also emphasized
the need for technical and financial support from experienced international OSW partners.
Consequently, they should aim to rectify the non-bankable terms of the PPA for OSW power
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farms between EVN and international partners. Enhancing the bankability of PPAs is a toppriority in Vietnam.
The government should consider upgrading the transmission system for transporting
electricity, including offshore wind (OSW), from the central to the southern and northern
regions because the current supply is insufficient. In addition, developers must address gridconnectivity issues to link their OSW farms to the national grid. Based on the survey, there are
two connectivity options available in other markets. First, developers must build transmission
lines from their OSW farms to onshore connection points, which would be suitable for theVietnamese context based on interviewees' responses. Second, developers can build
transmission lines directly from their farms to the national grid; however, there are potential
risks, such as negotiations with landowners, resettlement, and compensation with localities,
especially for international developers. The Electricity Law was revised to allow private sector
investment in the transmission grid, but it must establish regulations for the government and
OSW developers' roles and cost responsibilities. According to Do et al. (2022), the first option
for connectivity would be more appropriate for the Vietnamese context, whereas the second
option, which entails transmission connections to the national grid, could be employed for OSW
wind farms and has been implemented in China and Taiwan. However, this approach should be
limited to large deep-water projects, as suggested by Do et al. (2022).

5. Conclusion
This research emphasizes the critical need for Vietnam's legal and regulatory frameworkfor offshore wind (OSW) power development. A lack of comprehensive policies andbureaucratic procedures, including marine spatial plans, has been identified as a significant
barrier to progress. Additionally, the uncertainty surrounding future feed-in tariffs and auction
mechanisms composes these challenges. Moreover, the absence of clear policies on investment
procedures, such as investor selection and power purchase agreements (PPA) between project
developers and the state-owned electricity company EVN, hinders OSW power project
development. What steps can the government of Vietnam (GoV) take to resolve these issues?
One potential solution could be the establishment of an interdisciplinary working group for
OSW power development, led by the Ministry of Industry and Trade (MOIT) in January 2024.
It is imperative that MOIT exhibits effective leadership and delineates the responsibilities andcoordination with other ministries in the management of OSW power development, as the twoenergy-related agencies have already achieved considerable success in this area in collaboration
with the relevant authorities in Taiwan.
This study also highlighted the significant barriers posed by transmission grid constraints
to the advancement of the OSW technology. In conjunction with the development and revisionof regulations for grid connectivity with OSW power projects, it is also necessary for the GoV
to develop a detailed plan that upgrades transmission grids to absorb the electricity generated
from OSW power projects. As most international experts have stressed, the scale of general
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OSW power projects differs from that of solar and onshore wind power projects built in Vietnam.
So, it is quite essential for OSW developers to ensure whether electricity of their OSW power
plants can be connected to the national grid via connection points and bought by EVN.
As outlined in Section 3.3, the prompt approval of the 500 kV transmission line project,which connects the central and northern regions, was attributed to the Prime Minister's urgent
request to avert power outages in the northern provinces. EVN and the National Transmission
Corporation (NPT) promptly initiated procurement and utilized their own financial resources
to expedite the completion of the project. Despite the urgency, EVN and NPT were able to act
swiftly, despite delays in the construction of transmission grids in PDP7rev and a decrease ininvestment over the past six years. The Prime Minister's request accelerated the entire process
for this specific 500 kV transmission line.
The urgency for MOIT, EVN, and NPT to modernize inadequate transmission
infrastructure is critical. This is necessary to alleviate the disparity in electricity demand
between the northern and southern provinces and to facilitate the integration of additional RE
sources in specific provinces that have been curtailed. Furthermore, GoV should implement
measures such as enhancing transmission grids and implementing demand management andancillary services to transport RE sources from south to north. This will enable the absorptionof electricity from potential OSW power projects planned for construction in the southern
region. According to the provisions outlined in PDP8, it is recommended that GoV consider
implementing regulations for EVN and NPT in order to recover their costs and generate profitsthat can be used to upgrade the transmission grid and establish efficient measures for grid
systems. As an initial step, it is suggested that GoV and the private sector engage in DPPA tolearn valuable lessons. This study revealed the potential of international cooperation to support
the development of OSW in Vietnam. The concrete OSW project agreed with the governmentof Singapore and could serve as a pilot project, providing insights into the domestic OSW
market. Collaborative efforts involving platforms such as the Vietnam Energy PartnershipGroup (VEPG) and the Just Energy Transition Partnership (JETP) are promising avenues forexchanging knowledge and best practices. Led by key ministries (MOIT and MONRE) andinternational partners, these platforms have the potential to address critical regulatory issues
including marine spatial planning and tendering procedures. Additionally, private sector
participation through initiatives such as the Glasgow Financial Alliance for Net Zero (GFANZ)
presents opportunities for connecting financial institutions and driving discussions on bankable
PPAs. This study highlights the significance of fostering international cooperation to derive
insights from practical experiences, monitor the maturation of legal infrastructure, and obtainfinancial aid and professional guidance. It is anticipated that these international collaborations
will prove instrumental in promoting the development of OSW power in Vietnam and support
the nation's shift towards a sustainable and adaptable energy framework.

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Appendix 1
Experts’ perspectives on barriers to developing offshore wind power (OWP) in Vietnam
This research explores barriers various stakeholders have faced in developing OWP development in Vietnam.
Based on the literature review, I set questions. I kindly ask you to express your opinion.
Confidentiality: Your response will be treated confidentially (the interviewee's name and organization will not be cited inpublicly available papers), and the results will be used only for academic research purposes.

Contact: Akiko Urakami (Ms): Ph.D. Candidate, Graduate School of Economics, Kyoto University
Email: urakami.akiko.65a@st.kyoto-u.ac.jp / akiko.urakami.kyoto@gmail.com

1. What are the most essential meanings for OWP development in Vietnam?
A)

Meet increasing electricity demand

B)

Archive the net zero emission target by 2050

C)

Produce environmental-friendly and cheaper electricity

D)

Create new jobs in the marine economy industry

E)

National Defense

F)

Other (Please specify)

2. What are the three most critical barriers for the government of Vietnam (GoV) in the initial stage ofdeveloping OWP in Vietnam? Why do you think so?
A)Insufficient legal/regulatory framework (e.g., investor selection mechanism, selling electricity
mechanism, seabed leasing, survey licenses, grid connection, etc.)

B)

Lack of the authority to decide the investment policies

C)

Lack of clear administrative procedures needed at the central/provincial levels

D)No marine spatial plan

E)

Insufficient infrastructure, such as port systems, transmission grids, etc.

F)

Non-bankable model PPA / No PPA, which includes loans from banks/IFIs

G)

Lack of incentives (e.g., FITs, auctions, RPS, etc.)

H)

Limited financial channels

I)

Un-attractive policies for international investors (e.g., PPP Law, etc.)

J)

Insufficient supply chain/manufacturing in the domestic market

K)

Others (please specify.)

3. Which methods (non-exclusive or exclusive) should GoV apply for a project survey license in
Vietnam? (It should avoid overlapping the project survey.)

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4. GoV is willing to apply for a competitive bidding mechanism for OWP instead of FIT. What elements
should GoV prioritize as selection criteria?
5. Given the unique characteristics and risks of OWP development, which current model PPA element ismost critical (red line) for investors?
A)

Off-take (curtailment) risk

B)

Absence of government guaranteeC)

Absence of force majeureD)

Absence of international arbitration

E)

Absence of termination

F)

Others (please specify.)

6. What procurement processes should GoV prepare for OWP? (e.g., bidding for the lease and PPA for
particular areas, etc.)
7. Which organization should build/pay for the ports/harbors and transmission grids from OWP sites toonshore transmission grids?
A)

Government

B)

EVN/NPTCC)OWP developers

D)

Others (please specify.)

8. There are several active platforms/task groups (e.g., JETP, VEPG, VBF, GWEC, etc.) to accelerate
OWP development in Vietnam.
1) Considering the latest situation, what resources/inputs/achievements can each platform provide to
GoV (e.g., MONRE, VASI, MOIT, IE, EVN/NTPC, etc.)? Can you share examples?
2) How can JETP contribute to accelerating OWP deployment in Vietnam?
9. What impacts does the news of Orsted withdrawal from Vietnam have on OWP generation in Vietnam
in the future?
10. Considering the timeframe, it seems challenging for Vietnam to reach the 2030 target. Is there any way
that this can be achieved with the GoV’s leadership?

<Transmission Grid>

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11. GoV announced that the Quang Trach - Pho Noi 500kV transmission line project (circuit 3; 4 projectsof 500kV transmission lines: Quang Trach - Quynh Luu, Quynh Luu - Thanh Hoa, Nam Dinh I
Thermal Power Plant - Thanh Hoa, Nam Dinh I Thermal Power Plant - Pho Noi) will be completed byJune 2024 to supply power to the Northern provinces. Reducing the curtailment in Binh Thuan andNinh Thuan would be hard.
To reduce the curtailment in two provinces and absorb more solar and onshore/offshore wind power in
Vietnam, what should GoV do? (e.g., prioritizing grid upgrades of the specific sites via competitive
bidding, etc.)
12. Experts indicate concerns relating to national energy security in inviting the private sector to invest intransmission grids. How should GoV deal with this?
13. Are there any possibilities for GoV to plan to charge the network price (transmission/ distribution cost,
SMO cost, and ancillary cost) for solar/wind power plants from a cost recovery perspective when GoV
introduces a DPPA and an auction?

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