Conference: The Critical role of Thanglong Wind in Vietnam’s economy


On December 6, 2019 in Hanoi, the United Kingdom Embassy, Vietnam Energy Association and Enterprize Energy Group together hosted the Conference: The Critical role of ThangLong Wind in Vietnam’s economy.

Attending the conference were Mr. Gareth Ward, British Ambassador to Vietnam; representatives of Vietnamese central ministries, agencies, branches, and representatives of Binh Thuan province; Mr. Ian Hatton, chairman of Enterprize Energy, represented the ThangLong Wind Project; representatives of domestic and foreign strategic units of the project; Mr. Tran Viet Ngai, Chairman of Vietnam Energy Association and leading energy experts and press agencies.

At the conference, Mr. Ian Hatton, chairman of Enterprize Energy Group, updated the latest information about the survey progress of the project after receiving Document No. 4146 / BCT - DL June 12, 2019 from the Ministry of Industry and Trade on approval to carry out the survey, research and construction investment for Thang Long wind power project.

According to Mr. Ian Hatton, Vietnam has enormous wind potential with an estimated total wind capacity of 513,360 MW, the largest in Southeast Asia. However, the current total wind power capacity of Vietnam is only at 200MW, divided into 6 projects. Meanwhile, ThangLong Wind project had just received its detailed survey license on June 12, 2019 as a huge wind energy project with a capacity of 3,400 MW, which commensurates with Vietnam's wind power potential. Future Thanglong Wind power projects could offset the amount of energy shortages in Vietnam, especially in the South, hence creating a breakthrough for the economy; however, the project has not yet been officially included in the national electricity planning.

In addition, with appropriate and stable policies from the Government of Vietnam, along with reasonable power purchase agreement, and the use of certified turbine technology from reputable contractors for manufacturing and installing, international banks will ensure sufficient capital for the project construction. The success of the project will provide an enormous amount of clean electricity for Vietnam's electricity system, contributing to ensuring energy security and environmental protection in the future.

Mr. Gareth Ward, British Ambassador to Vietnam also emphasized at the conference: “The UK is currently one of the leading countries in the field of wind power development in the world. In the UK, wind power projects provide power to about 4.5 million homes annually, and account for about 10% of the UK's electricity by 2020. The total amount of offshore wind power installed in the UK as of February 2019 is 8,183 MW. By 2030, offshore wind power will supply about one-third of Britain's energy and create about 27,000 new jobs in the industry.

The cost of developing new offshore wind power has dropped by 50% since 2015 and is now one of the lowest cost options for the new energy industry in the UK, as it is more cost-effective than nuclear power and gas. From 2016 to 2021, nearly 19 billion pounds will have been invested in offshore wind power in the UK. This investment supports thousands of jobs across the UK in construction, project development and operation. In order to achieve this objective, the UK government has set a goal of reducing carbon emissions by 90% from 1990 to 2050. The targeted goal has boosted the development of the renewable energy industry in the UK.

An ESMAP Energy Management Assistance Program report shows that Vietnam is a country with similar offshore wind resources compared to the UK. Therefore, the UK is eager to assist Vietnam in utilising this resource to help meet the country's energy goals. There are currently two offshore wind farms which are of great economic value to be developed in Vietnam: The Thang Long offshore wind power project in Binh Thuan province and the offshore wind power project in Soc Trang developed by UK investors”.

In assessing the Thanglong Wind project at the conference, Mr. Tran Viet Ngai, chairman of Vietnam Energy Association, said that Enterprize Energy Group is a major investor of the United Kingdom.

The Vietnam Government, Ministry of Industry and Trade, and EVN have determined that from 2020 to 2023, there will be severe electricity shortage if the projects of the National Power Development Plan VII continue to be delayed. If the power shortage continued until 2030, Vietnam’s economic situation would face great difficulties.

Meanwhile, the ThangLong Wind project is a breakthrough that is a sufficient supplement for the power supply to support the electricity shortage from 2023 to 2027, and until 2030 onwards, hence is extremely meaningful to Vietnam's economy.

The project desires to be approved by the Government in supplement to the NPDP VII by mid-2020. Investors then may begin implementing for the next two years, until 2023, when the first units begin generating electricity.

Because of the importance and great significance of this project, we advise the Government to determine this to be a national key project of interest from the central level to the ministries, branches, EVN and Binh Thuan People's Committee. "

Energy experts also believe that this project has great potential for Vietnam's economy. The project, if successful, will optimize Vietnam's internal resources in the design, processing and manufacturing industries. 6-8.3 billion USD of investment capital is expected to be spent on contractors in Vietnam in the process of surveying, designing, processing, manufacturing. The estimated generating annual revenue is approximately 600 million USD for Vietnamese contractors during the operation, maintenance and maintenance period.

In addition to solving the nation's long-term energy problem, the promotion of the development of offshore wind power and marine economy will contribute to protecting national security, sovereignty and territorial waters, and in turns attracting many investors and contractors around the world. Furthermore, technology and construction equipment can also be used to contribute to the transfer and supply of existing strategies and labor of the shipping and port industries, marine exploration and surveying.

Currently, in addition to implementing the survey plan as planned, Enterprize Energy is working closely with EVN-PECC3 to identify the existing grid and capacity constraints in the National Power Development Plan VII (amended). Enterprize Energy Group believes that the first phase can fit into the existing system and has already identified the upgrades required to develop the project fully on schedule.

At the conference, representatives of Power Engineering Consulting Joint Stock Company 3 (PECC3) stated that the Thang Long offshore wind power project of Enterprize Energy Group is a modern, feasible and great wind capacity project, up to 3.400MW. When the project is put into operation, it will offset the shortage of energy, especially in the southern region, resulting in a breakthrough for the economy. The additional electricity planning by the Government, in addition to facilitating the project to enter the signing of electricity and investment contracts, will also help to clearly define the investment in electricity transmission and road transmission systems, wires, power stations, etc.

Vietsovpetro & PVC-MS representative also emphasized that this project will have a localization rate of up to 50%, which provides Vietnamese businesses the opportunity to further participate. Vietsovpetro & PVC-MS is responsible for the entire design, construction, fabrication, launching, transportation and installation of offshore foundations and other related works that Vietsovpetro and PVC-MS can undertake. This project will make full use of the capacity of Vietnamese enterprises in constructing structures through Vietsovpetro and PVC-MS, helping Vietnam become a leading country in Southeast Asia in developing offshore wind power.

Earlier this year, on September 22, 2019, Enterprize Energy Group - the investor of the offshore wind power project Thang Long (ThangLong Wind) had officially signed an investment commitment with the People's Committee of Binh Thuan Province.

From September 15, 2019, the Group has completed the installation and operation of the LIDAR system with partners to evaluate the wind potential on the offshore Diamond oil rig offshore in adjacent to the wind power project area. Observation parameters include: Wind direction and wind speed. Altitude measures wind at different heights with the highest position up to 200m above sea level. The observed parameters are automatically recorded continuously, as the maximum / minimum values will be recorded during the observation process.

On implementation via airborne survey, Enterprize Energy Group completed its first flights on October 28, 2019 and November 2, 2019, using High resolution air-flown seasonal survey methods to identify relevant species, roosting areas and migratory habits.

It is expected that at the end of the first quarter of 2020, geophysical survey and geotechnical survey will be carried out. This includes offshore activities, including measuring the depth of the seafloor, surveying the surface of the seabed, conducting drilling, sampling, conducting field experiments and in-shore experiments with a limited number of boreholes (up to 6 boreholes) in wind power development areas (bore depth up to about 80m below sea floor) to assess seabed geological conditions.

Further information of the project:

ThangLong Wind project is located off the coast of Binh Thuan (from Ke Ga cape) about 50km, in an area of over 2,000 km2, with an average wind speed of 9.5m / s; special wind column structure, turbines may have different capacity. The first turbines were built with a capacity of about 9.5MW, then with the advancement of technology will be increased to 10MW - 12MW.

Phase I of the ThangLong Wind project will be connected to the grid by the end of 2022 and early 2023 with a capacity of 600 MW and 64 wind columns.

The next stage of development is ThangLong Wind II, ThangLong Wind III, ThangLong Wind IV, ThangLong Wind V in turn from 2023-2026 with a capacity of 600 MW each phase. The final development stage is ThangLong Wind VI with a capacity of 400 MW.

The total capacity of the project is approximately 3,400 MW. Investment capital arranged for the entire 3,400MW project is equivalent to about 11,9 billion USD, not including the investment for connection to the national electricity system.