Binh Thuan takes full exploit of local potential and advantages in renewable energy development

Preliminary results

According to the assessment of the Provincial Party Committee’s Standing Board, in implementing Resolution 55 of the Politburo, the Provincial Party Committee’s Standing Board has identified goals, targets, tasks, and key solutions to exploit the potential and advantages of developing renewable energy (e.g. wind and solar power). The Party committees and authorities at all levels are concerned with training, fostering, and enhancing the capacity and proactiveness of the energy management officials. At the same time, efforts are being made to streamline administrative procedures based on perfecting the “one-stop” mechanism, especially in the fields of land and investment, in order to create favorable conditions for attracting investment and ensuring sustainable and efficient energy development.

After the adoption of Resolution No. 55, the province has implemented a comprehensive set of solutions to invest in the construction of power projects according to the approved Power Development Master Plan in the province, including power generation facilities and transmission and distribution grids. Binh Thuan province strives to enhance its reserve capacity and supply of energy and electricity to achieve targets such as: providing sufficient electricity to meet the province’s energy demand according to the approved Power Development Master Plan, and effectively meeting the requirements for development objectives. The province aims to develop and increase the total capacity of power sources according to the national Power Development Master Plan and the approved Power Development Master Plan in the province. Priority is given to the development of renewable energy sources, such as wind and solar power. As a result, the province has attracted foreign investors, the Vietnam Electricity Group, and private enterprises to invest in the development of wind, solar, and small hydropower sources. In the field of distribution grid investment and electricity business, it is undertaken by Binh Thuan Power Company (under the Southern Power Corporation - Vietnam Electricity Group).

During the period from February 2020 to June 2023, Binh Thuan province has completed the investment, construction, and operation of 11 additional renewable energy power plants, with a total capacity of over 409 MW. Currently, the province has a total of 47 operating power plants with a total capacity of 6,523 MW, and the designed electricity output of these 47 power plants on the province’s territory is over 31 billion kWh per year. Additionally, the province has 13 priority energy-consuming facilities approved by the Prime Minister. These facilities have invested in upgrading production equipment to save energy, such as maintenance of vehicles, maintenance of production line equipment to reduce losses, installation of inverters for electric motors, replacement of traditional hairline bulbs with high-efficiency LED lights, use of inverter air conditioners in offices, limiting electricity usage during peak hours, and having backup electrical devices to promptly replace in case of emergencies and so forth.

Suggestions and proposals

In the coming time, in order to effectively implement Resolution No. 55 and Decision No. 2068 approved by the Prime Minister on Vietnam’s Renewable Energy Development Strategy until 2030 and vision towards 2050, it is necessary to tap into the potential and advantages of localities, contribute to socio-economic development, ensure national energy security, and fulfill Vietnam’s commitment at the COP26 conference on the Net Zero target by 2050. The Provincial Party Standing Committee has proposed that the Central Party Economic Committee pay attention, consider, and provide opinions to the National Assembly, the Government, the Prime Minister, and central ministries and agencies to address certain issues.

Specifically, for offshore wind power, there are specific requirements from surveying, designing, procurement, manufacturing, offshore installation, operation, maintenance, connection to the national power transmission system, and financial arrangements, etc that are very different from onshore wind power and other forms of renewable energy. Therefore, the province proposes that the Central Party Economic Committee recommend to the Prime Minister to consider directing the pilot implementation of offshore wind power projects in the coastal areas of Binh Thuan province or other localities.

Based on that, policies and breakthrough mechanisms should be developed to support the development of offshore wind power, in conjunction with Vietnam’s Marine Strategy, the bidding process, investor selection (surveying, investment), commitments with the Government of Vietnam on socio-economic development, national defense, and security issues. Calculation of electricity prices, power purchase agreements, connection plans to the national grid system for offshore wind power projects should be prioritized for pioneering projects that bring about economic and social benefits and create an attractive investment environment for subsequent projects.

Furthermore, to achieve sustainable development in the renewable energy sector in general, and offshore wind power in particular, the province proposes the Central Party Economic Committee to recommend the Prime Minister to consider directing the formulation of policies and regulations regarding technology transfer and attracting investment in large-scale projects for the development of supporting industries.

This will help rapidly develop and gradually increase the localization rate of equipment and technology, especially high-tech equipment and power source technologies such as large-capacity wind turbines, as well as the environmental industry for the disposal and efficient recycling of renewable energy equipment, aiming towards a circular economy in the renewable energy sector. Additionally, it is suggested that Vietnam Electricity Group assign relevant units and subsidiaries to conduct research and consider supplementing the power planning, investing in new construction, renovation, and upgrading of 500 kV, 220 kV, and 110 kV transmission lines and substations. This should be done in a synchronized manner to facilitate connection, transmission, capacity release, and maximize the efficiency of electricity projects in Binh Thuan province.

Moreover, it is recommended to promptly address the province’s proposal regarding the relocation of households in Vinh Phuc hamlet, Vinh Tan commune (adjacent to the expanded Vinh Tan 4 Thermal Power Plant) affected by dust and noise from the Vinh Tan Power Center. This is to ensure a safe environmental distance for the residential areas in Vinh Phuc and Vinh Tien hamlets, Vinh Tan commune, Tuy Phong district.