Optimizing Offshore Wind Farm Development: Refining the Legal and Policy Framework

Vice Prime Minister Tran Hong Ha emphasized that the pilot implementation of offshore wind power development is a "learn-by-doing" process. This approach aims to simultaneously work on and refine the accompanying mechanisms, policies, and legal frameworks.

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Deputy Prime Minister Tran Hong Ha speaking at the meeting on July 26th. Photo: VGP

At a meeting on July 26th to discuss the draft proposal for the pilot development of offshore wind power, the Ministry of Industry and Trade reported on some of the main challenges and obstacles facing the development of offshore wind power in Vietnam. These include issues related to planning, investment policies and selection of investors, market access for foreign investors, public-private partnerships (PPPs), construction permits and regulations, maritime laws, and the classification of wind resources as public assets.

In addition, there are concerns related to national security, defense, and sovereignty; electricity pricing; credit; and standards and regulations for equipment, construction, and fire safety.

Deputy Minister of Industry and Trade Nguyen Huang Long stated that the Ministry is also working with the Vietnam Electricity Group (EVN) and the Vietnam National Oil and Gas Group (PVN) to facilitate the preparation and implementation of two pilot projects.

At the meeting, the Ministry of Natural Resources and Environment (MONRE) shared that the National Sea Spatial Planning has been approved. MONRE also assured that the Prime Minister will soon issue a decree amending and supplementing Decree 11/2021/ND-CP, which will resolve the issue of assigning sea areas for investigation, measurement, and survey activities. Additionally, MONRE has already assigned sea areas for an offshore wind power project to export electricity to Singapore and for about ten offshore wind power projects within the 6-mile maritime zone.

Leaders of EVN and PVN confirmed that they have initiated preparatory steps for the potential development of pilot offshore wind power projects.

Concluding the meeting, Deputy Prime Minister Tran Hong Ha emphasized that the proposal for the pilot development of offshore wind power has been long-awaited and is of great interest to the Government and the Prime Minister. He stated that the proposal should include specific projects and identify legal, technical, financial, and other challenges in the implementation process. This will serve as a basis for proposing pilot solutions and addressing obstacles in terms of laws, policies, and authority.

The Deputy Prime Minister provided guidance on addressing some of the challenges, highlighting the need for coordination between ministries and sectors rather than attributing the obstacles to legal issues. For example, the selection of locations for offshore wind power projects requires the agreement of the Ministry of Transport regarding international sea lanes and the Ministry of Defense for areas related to national defense and security.

Similarly, the Ministry of Industry and Trade should carefully review and propose solutions for challenges related to investor selection, electricity export, and the involvement of foreign investors, which fall under the authority of the Government and the Prime Minister.

Tung Phong