The wind is strong but why can't the turbine be turned?
The implementation of wind power projects in Quang Tri has many advantages but also poses many difficulties in terms of capital and legal procedures, especially site clearance (GPMB) progress.
The LIG Huong Hoa 1 Wind Power Plant project is invested by LIG - Huong Hoa 1 Joint Stock Company, with a capacity of 48MW with a total investment of VND 2,100 billion, implemented in Huong Tan commune, Huong Hoa district, Quang Tri province.
Mr. Nguyen Nam Du - Head of the LIG Huong Hoa 1 Wind Power Plant Project Management Board - informed that the project was approved for investment in 2020 with a total land area allocated of more than 30 hectares. However, up to this point, the project has not been able to be implemented due to land acquisition problems.
In addition to compensation by the People's Committee of Huong Hoa district to make decisions in accordance with the State's regulations, businesses are willing to pay more than doubled to people. "However, up to this point, about 13 more households continue to require very high compensation, making it difficult for businesses. To ensure the construction progress of the factory in accordance with the commitment to the investment policy of the province, businesses hope that local authorities at all levels will make more efforts to support the project clearance work of the project" - Mr. Nguyen Nam Du suggested.
To support businesses in removing obstacles, on May 16, the People's Committee of Quang Tri province issued a document requesting the People's Committee of Huong Hoa district to urgently carry out site clearance work, ensuring timely handover for the project to be implemented, avoiding affecting the investment environment and local socio-economic development.
Not only Quang Tri, many localities across the country are making efforts to promote energy conversion and develop infrastructure to meet electricity demand for the economic growth target of over 8% in 2025 and double digits in the following years. However, despite many policies being issued, the process of developing labor relations still faces many difficulties and shows signs of stagnation.
Great potential, but "ugguggling" in mechanisms and legal corridors
Speaking with Lao Dong, Associate Professor, Dr. Dang Tran Tho - Director of the Institute of Energy Technology (University of Technology) - assessed that the period 2018-2020 witnessed the explosion of surface electricity, with more than 16.5GW put into operation, making Vietnam the leading country in ASEAN in terms of surface electricity capacity ( surpassing Thailand). Wind power will also reach about 4.3GW by the end of 2023, most of which will be developed in Ninh Thuan, Binh Thuan and the Central Highlands provinces.
However, according to Associate Professor, Dr. Dang Tran Tho, from 2021 onwards, this development trend will slow down due to the end of the FIT price mechanism and no suitable replacement mechanism. More than 2,000MW of wind and space power has been completed but has not signed a power purchase agreement (PPA) or has been subject to frequent capacity cuts due to failure to clear the grid.
The lack of a transitional electricity price policy also causes dozens of GW projects to "wait in line" waiting for approval, causing great waste of social resources.
The energy sector still depends mainly on coal, accounting for about 45% of electricity output (2023). This puts great pressure on the goal of reducing greenhouse gas emissions and shifting to green. Clean energy sources such as LNG, renewable energy, or new biomass are in the investment preparation stage, not large enough to replace traditional sources" - Associate Professor, Dr. Dang Tran Tho assessed.
Talking to Lao Dong, Dr. Nguyen Quoc Viet, Economic expert, Lecturer at the University of Economics (Vietnam National University, Hanoi) assessed that one of the biggest challenges today is the power grid system and the ability to integrate IT into the national power grid.
Currently, Vietnam's power transmission and distribution system is not capable of receiving a large proportion of highly volatile IT sources such as solar power and wind power. The situation of power line overload, especially in the Central and Southern regions, is limiting the ability to release capacity, forcing the cutting of power generation from renewable projects, reducing investment efficiency and affecting the goal of developing green energy.
In addition, energy storage technologies such as batteries or green hydrogen are limited in scale and cost, making it difficult to balance electricity supply and demand.
According to Dr. Nguyen Quoc Viet, the legal framework for renewable energy is currently not synchronous and not attractive to investors. Technical standards and technology regulations are not yet complete, while Vietnam does not have a specialized law on renewable energy. This reduces transparency and consistency in preferential policies, increasing legal and financial risks for investors.
Dr. Nguyen Quoc Viet said that to successfully transition energy, Vietnam needs to synchronously implement solutions on technology, policies, finance and international cooperation. The goal is to overcome current challenges, exploit the full potential of renewable energy, towards an effective and sustainable transition.
