The La Gan offshore wind farm situated in Binh Thuan will produce a total capacity of 3,500MW once fully constructed (enough power to support over 7 million Vietnamese homes annually).

Connecting such large-scale offshore wind power projects has significant advantages over other renewable energy sources, by avoiding many of the significant constraints associated with onshore renewable energy generation such as large land requirements, immediate visual impacts, noise/vibration during construction and operation, etc.

Renewable energy project difficulties

When connecting a renewable energy project to the grid, most forms require a significant area of associated land for example a solar farm or onshore wind farm, and only deliver a fraction of the energy compared to an offshore wind farm. Much of the infrastructure for offshore wind is situated offshore at a significant distance from the coast (e.g. wind turbines, foundations, offshore substation, buried offshore cables, etc.), with reduced infrastructure onshore (transmission only).

Land constraints are one of several priorities that need to be carefully managed when developing renewable energy projects, to ensure projects can connect on time and avoid conflicts with existing or planned land use and classification. Onshore wind and solar often has limitations from topography and terrain to install and operate (e.g. direction of the sun, bedrock, access, etc. which may affect siting), in turn there is increased risks from other aspects such as flooding, land stability and conflicting with communities.

With renewable energy projects grid connection is key, and with large-scale offshore wind suitable onshore infrastructure is vital. Many onshore wind and solar energy projects frequently have a low annual capacity factor (20-30 percent) and small to medium-sized onshore wind and solar power schemes are frequently connected to the national power grid at low voltage (220kV, 110 kV and below) and therefore contributing a smaller capacity to the grid. Offshore wind can provide annual capacity factors of nearly double this and connect at higher voltages (220kV, 500kV).

There are currently no regulations or guidelines governing how non-state economic sectors can invest in connected transmission lines, however recent revision of the Electricity Law have been made to allow for private investment in these. If regulations become clearer, developers could consider investing fully or partially in the construction of transmission lines/grid upgrades in close cooperation with the grid operator to reduce risk and ensure projects can be delivered on time. Grid delays and uncertainty alongside any required curtailment due to poor infrastructure and demand management, can become a great risk for a developer and often delay or prevent investors from committing until there is further certainty.

The national power system operator ensures there is sufficient power to meet load demand that may occur during the day. When many projects in low on-site load areas can lead to overcapacity and congestion (especially at off-peak times), putting the operator under additional challenge and requiring capacity reductions (curtailment - where generating capacity exceeds demand, and the operator is asked to reduce or stop generating).

High levels of curtailment pose a significant threat to the development of new commercially viable renewable projects. If an agreement can be reached between an offshore wind developer and the grid/relevant governmental body, for a set capacity and fixed price, then a project can be designed to deliver that capacity at a high level of availability and build in its own operational restraints.

An offshore wind farm representation

Advantages and solutions based on offshore wind energy

Normally, the connection point for an offshore wind project is located as close as possible to the required onshore grid connection. However this is not always the case, and the onshore cable length from where it reaches the land from offshore to the onshore substation can be quite substantial. To mitigate this, experienced developers may consider investing in the construction/upgrade of a section of the high-voltage transmission system. This can secure a more efficient and timely upgrade to improve the transmission capacity of the regional power grid and reinforce the system, in addition to minimize risks of delays and avoid/reduce curtailment.

Offshore wind typically outperforms onshore wind in terms of quality and stability, particularly in the Binh Thuan and Ninh Thuan regions, where the wind resources are far greater offshore compared to onshore. Larger wind turbines can assist achieve exceptionally high annual power factors, typically ranging from 40-60 percent for large-scale offshore wind projects. The La Gan project, which is being developed by Copenhagen Infrastructure Partners and local Vietnamese partners, can provide stable renewable energy sources at a high energy capacity (3,500MW).

Numerous global banks and financial institutions prioritize providing capital for renewable energy projects, particularly offshore wind, therefore raising financing for these ventures is more favorable with experienced and capable developers, supported by global commitments to reducing emissions. In countries where offshore wind has matured, evidence shows a high degree of investment in such technologies.

Globally there is a growing commitment to reduce reliability on fossil fuels and reduce carbon emissions by promoting renewable energy. The strong pledge by the Vietnamese government during COP 26 to reach net zero by 2050 is an ambitious yet achievable target providing suitable regulatory frameworks and supporting structures are in place. The 3,500MW La Gan Offshore Wind Project can contribute substantially towards this, and in association boost the economy through utilizing local suppliers and resources.

PV