Denmark putting wind in Vietnam’s sails

15:23 | 05/01/2018 MUTRAP Corner

(VEN) - Denmark has pledged to help Vietnam become a regional leader in the production and integration of wind energy.

denmark putting wind in vietnams sails

At a recent conference on wind power in Vietnam, titled “Investment and Wind Profits” organized by the Embassy of Denmark in Vietnam in cooperation with Vestas, the largest wind turbine company in the world, Danish Ambassador to Vietnam Charlotte Laursen said Denmark and Vietnam have cooperated for many years on energy development. Denmark will support Vietnam in long-term planning of a green transition of its energy system, she added.

Denmark, a world leader in wind power development, is committed to supporting Vietnam in advancing wind power trade and production, as well as orientations for the building and management of wind power plants, she said.

Clive Turton, chairman of the Vestas sales unit for the Asia-Pacific region, said Vietnam is the second fastest growing economy in ASEAN and holds huge potential for wind power development, with a long coastline and abundant wind resources. The country’s total wind power capacity could reach 30GW.

The potential for wind power is concentrated in the coastal provinces from Quang Ngai to Binh Thuan. However, this potential has yet to be fully tapped, as only four commercially viable projects with total installed capacity of 159MW have been implemented.

denmark putting wind in vietnams sails

“Vestas is ready to help Vietnam become a leader in wind energy. With Vietnam’s huge potential in wind power, we can completely achieve clean energy goals,” said Turton. He also said Vestas already provides wind turbines and technical support for three of six wind farms in Vietnam. The company will consider building a wind turbine manufacturing plant in Vietnam if the government targets wind power production of thousands of MW.

Mai Van Hue, chairman of the Tan Hoan Cau Group, spoke about obstacles to investment in wind power projects in Vietnam, saying the government buys wind farm power for 7.8 cents per kWh, much lower than in other countries, such as Thailand and the Republic of Korea that pay 25 cents per kWh. Therefore, investors see little incentive to invest in wind power projects in Vietnam.

Denmark is a world leader in the deployment of wind power and has experience with integrating variable renewable energy sources such as wind and solar power. Vietnam can learn from Denmark on how to develop incentives and build a grid to integrate variable renewable energy. The energy partnership program between Vietnam and Denmark, that marks the beginning of another three years of close cooperation between the Danish Energy Agency and Ministry of Industry and Trade, has specific components to ensure the development of renewable energy sources such as wind and solar power in Vietnam.

One of the challenges of renewable energy development, including wind power, is to ensure reliability for the national grid. Vestas has had years of experience in this regard and is ready to share it with Vietnam, said Turton.

Vestas and the Tan Hoan Cau Group signed a memorandum of understanding on accelerating wind farm development in Vietnam. The two sides will study the potential of wind farms in Huong Hoa District’s Huong Linh Commune in Quang Tri Province and then assess the total potential capacity. Based on the infrastructural development progress, the area of study will be developed in phases of six sub-projects with a minimum capacity of 30MW each.

Nguyen Huong