Conference: Ke Ga offshore wind power - A new breakthrough for Vietnam’s economy

  On December 07th, 2018, at the Hilton Hanoi Opera Hotel, Vietnam Energy Association and Enterprize Energy Pte. Ltd. organized the conference “Ke Ga offshore wind power – A new breakthrough for Vietnam’s economy.” Based on the investor’s information, the field-leading experts from VEA and other organizations assessed that this multi-billion-dollar project, with full capacity of 3400MW, could really be a new breakthrough for Vietnam’s economy.

Participants of the conference were the heads of Ministries, Departments & Divisions; representatives of State-owned corporations such as EVN, PVN; Investor: Enterprize Energy; Foreign partners: MHI Vestas, Societe Generale Bank; Domestic partners: PVC - MS, Vietsovpetro; energy experts in Vietnam and press agencies.

Ke Ga Wind Power Project – the project that would make Vietnam one of the top wind power producing countries.

The Prime Minister issued Decision No 2068/QD-TTg dated 25 Nov 2015 on Viet Nam’s Renewable Energy Development Strategy until 2030, with vision to 2050.

The Strategy is aimed at mobilizing all available resources to promote the development and usage of renewable energy, reduce dependence on fossil fuels, contribute to energy security, mitigate climate change, protect the environment, ensure sustainable socio-economic development, and to utilize renewable energies to reach sustainable environmental targets, and to develop the green economy.

Based on this strategy of Vietnamese government, Ke Ga Offshore Wind Power Project was initiated. In reality, it has been fostered and studied by Enterprize Energy for many years. The initial feasibility study for this project has highlighted the potential of an area of 2000 km2 a minimum of 20km offshore Binh Thuan province, south and east of Ke Ga cape.

The project will be constructed offshore Binh Thuan province (between 20km and 50 km away from Ke Ga cape), where the projected average wind speed is over 9.5m/s. Turbines may have different rates of power; the first ones will be rated at 9.5MW. Over the duration of the proposed phased development, following the industry’s trends and technological advances, more powerful turbines are likely to be seen. In the future, with the success of this project, Vietnam will have an offshore wind power farm with global-leading technology.

According to Mr. Ian Hatton, Chairman of Enterprize Energy, the proposed scope of the Ke Ga Project is 3,400 MW, to be developed in 600MW phases. The investment capital required to implement the entire 3,400MW project is approximately 9 billion USD, excluding investment in export transmission lines and sub-stations with capacity of 500kV to connect to the national grid. Mr. Ian Hatton believes that with stable and consistent governmental regulation, appropriate power-purchase contracts, proven turbine technology and contractors to fabricate and install equipment, financial aspects of the project can be ensured by funds from international banks.

Ke Ga project - High feasibility and concensus

The group of investors has worked with Binh Thuan People’s Committee and got the Committee’s approval. The project has now been submitted to the Prime Minister for consideration. The Prime Minister issued Document No 6964/VPCP-QHQT dated 25th June 2018 based on the report by Enterprize Energy.

On 7th of September 2018, implementing the direction of the Prime Minister, the Ministry of Industry and Trade issued Document No 7250/BCT-BN, instructing Enterprize Energy to follow required procedures. This process has been actively implemented by the investors and is at final steps now.

Mr. Tran Viet Ngai, Chairman of Vietnam Energy Association, evaluated that the Ke Ga Offshore Wind Power Project will be the first offshore wind power project in Vietnam, extremely potential, modern and feasible. The success of the project would provide a large amount of clean electricity for Vietnam's power mix, contributing to energy security and environmental protection in the future. Such a large and important project would very likely create a breakthrough for the Vietnamese economy and should be implemented soon.

The experts suggested that it is necessary to develop the Ke Ga project as one of the key national energy projects. Comments at the conference also expressed the consensus among stakeholders.

At the conference, leading experts in energy industry also analyzed and evaluated on opportunities and challenges for this project such as the role of the project in the Strategy until 2030 with Vision to 2045 of the energy sector of Vietnam; economic efficiency of the project; transmission and connection solutions with the national power grid and other related issues.

Enterprize Energy and its Vietnamese partners, PVC - MS and Vietsovpetro, also provided details on the capacity of the project participants and their implementation plans. Representatives from Société Générale and MHI Vestas, the world's leading wind turbine manufacturer, also made positive comments and confirmed the maximum commitments of these two units for the project.