The energy sector welcomes new FDI inflows

4 min read

With the Government’s push, in recent years, renewable energy has developed extremely strongly in Vietnam. Photo: Đ.T

The Politburo’s Resolution 55-NQ / TW in 2020 creates great hope for business expansion for FDI enterprises providing complete equipment, technology and solutions for the energy market.

Prioritize clean energy

Mr. Pham Minh Thanh, Country Director of Wärtsilä Vietnam, said that Resolution 55-NQ / TW aims to synchronously, rationally and diversify types of energy, prioritizing exploitation and use completely and efficient renewable energy, new energy, clean energy. This is the core business of Wärtsilä (from Finland, specializing in the development of sustainable and closed solutions for the energy market) for the past 184 years.

In the Vietnamese market, Wärtsilä is doing strong marketing with the hope of increasing sales by providing technology for power projects. Wärtsilä’s energy business is leading the transition towards a future using 100% renewable energy. Wärtsilä offers flexible power plants, energy management and storage systems, as well as closed services to increase efficiency and ensure efficiency.

“With the Government’s push, in recent years, renewable energy has developed extremely strongly in Vietnam. We think that this is a very good opportunity to invest in the energy sector in Vietnam “, Mr. Thanh said.

Another supplier, Fortum Power and Heat Company OY Finland, is also looking forward to the coming of Resolution 55-NQ / TW to come to life soon. This business provides technology to minimize harmful thermal power emissions, mixed energy system development solutions in many markets around the globe.

Fortum’s hydropower plant efficiency enhancement technology will enable efficient hydropower plant operation, minimizing overhaul and plant downtime. With coal-fired power, Fortum’s technology allows to replace up to 40% of the required amount of coal in coal-fired thermal power plants This is what is being considered in the energy development process in Vietnam.

With the national electricity demand growth rate for the 2016-2020 period of 10.6% and 8.5% for the period of 2021-2025 and 7% in the period of 2026-2030, Vietnam becomes an attractive market for with domestic energy investors and foreign direct investment (FDI) enterprises. Accordingly, Vietnam needs to mobilize an additional 5,000 MW from now to 2025, which means that each year, it needs to pour an additional 7-10 billion USD to invest in power projects.

Handshakes

There have been new moves to welcome FDI inflows into energy. Recently, the US Millennium Company has been allowed by the Management Board of Van Phong Economic Zone (Khanh Hoa) to survey and research projects in the Van Phong area to study the feasibility of the gas-power project complex.

According to Millennium, the LNG Center Project (over 10 million m3) and the Power Plant (capacity 4,800 MW) has a total initial investment capital of 8 billion USD. In the future, the Company will increase the power plant’s capacity to 9,600 MW and the warehouse to 15 million m3, with an investment of 15 billion USD. Mr. Nguyen Khac Dinh, Secretary of Khanh Hoa Provincial Party Committee affirmed that the idea of implementing the LNG Center and Power Plant Project of Millennium Company is suitable with the potential and orientation of industrial development in this area.

Previously, at the Vietnam Energy Summit 2020, a series of cooperation in the implementation of energy projects was signed. Typically, Copenhagen Infrastructure Partners (CIP – Denmark) and Binh Thuan province have signed a Memorandum of Understanding for the development of La Gam offshore wind power project with a total capacity of up to 3.5 GW, with an investment of $ 10 billion. This is one of the first large-scale offshore wind power projects in Vietnam, as a prerequisite for attracting other foreign investors to offshore wind power projects.

CIP is a pioneer in the offshore wind power industry in the Asia-Pacific, including projects in Vietnam, Taiwan, Korea, Japan and Australia. CIP operates seven funds with more than $ 10 billion in committed capital. Funds have implemented more than 20 portfolios in energy infrastructure, with a total capacity of nearly 8 GW in the United States, UK, Germany, Spain and Taiwan. The funds also have more than 15 energy infrastructure projects that are in the process of preparing final investment decisions and are expected to commence within the next 2-3 years.

Mr. Michael Hannibal, CIP’s founding member, said that with the project in Binh Thuan, CIP pledged to continue to work with local partners to turn this project into a model of a technology transfer project have been successful in parallel with making the most of local resources and expertise.

Plan to compensate power output shortage

According to calculations by the Ministry of Industry and Trade, Vietnam is estimated to have a shortage of about 6.6 billion kWh of electricity by 2021, 11.8 billion kWh in 2022 and a peak of over 13 billion kWh in 2023. To compensate for production shortages This huge deficit, according to Government estimates, will need about $ 130 billion in new energy investment by 2030, equivalent to an average investment of 12 billion USD / year, of which about 9 billion USD is for investment in electricity sources and 3 billion USD in electricity grid.

Source: tinnhanhchungkhoan.vn