Offshore wind energy for sustainable marine economic development in the context of climate change

Nội dung text: Offshore wind energy for sustainable marine economic development in the context of climate change

1. No.19_Dec 2020|Số 19 – Tháng 12 năm 2020|p.89-94 TẠP CHÍ KHOA HỌC ĐẠI HỌC TÂN TRÀO ISSN: 2354 - 1431 OFFSHORE WIND ENERGY FOR SUSTAINABLE MARINE ECONOMIC DEVELOPMENT IN THE CONTEXT OF CLIMATE CHANGE Trinh Phuong Ngoc1*, Tran Thi Nhung1 1Tan Trao University * Email: gemytrinh@gmail.com Article info Abstract: This research evaluates Vietnam’s preparedness for its offshore wind energy Recieved: program using the SWOT analytical method. The research found out that Vietnam has a lot of strengths and opportunities that makes an investment in 12/9/2020 offshore wind energy an economically viable option in the context of climate Accepted: change. Despite the country’s effort towards meeting the requirements for the 10/12/2020 licensing and contracting of the facility, there are still some important loopholes which could delay the process. Issues such as policy and plan, infrastructure systems, high-tech human resources, territorial sovereignty and national security are threats to the smooth implementation and operation of a Keywords: offshore wind power plant. The research therefore recommended to the offshore wind energy, government of Vietnam to pay critical attention to these loopholes. Also, a marine economic particular weakness was looked at which is financing and provided some development, climate funding options for its development. Vietnam should complete the plan for change, SWOT analysis, offshore wind energy and develop appropriate policies and mechanisms to Vietnam. attract investors. 1. Introduction Vietnam is speeding up industrial development, nuclear power. Besides, the potential of typically the aluminum industry with pilot bauxite- hydroelectricity has basically been exploited while alumina projects which have the largest scale in the reserves of oil and gas for electricity generation Vietnam’s mining industry (except oil and gas are not much. projects). This shows the determination in moving Climate change will reduce economic growth towards the development of aluminum industry lead to and create unsustainable growth cycles. Socio- other industries such as manufacturing from economic development activities in many fields aluminum materials, machinery, cars, supporting, etc. such as energy, industry, transportation, etc Modern industrial development requires high increase the concentration of gases causing electricity demand. Currently, the total capacity of "greenhouse effect" in the atmosphere and affect power plants is 40GW. The electricity output in the global environment. Vietnam has a long 2019 is about 226.4 billion kwh which is just coastline and is considered a country is being enough for current demand. Also, the cost of impacted by climate change [5]. The current trend energy is still at high level. In the current context, of climate change adaptation is reducing fossil Vietnam has not enough conditions to develop energy use and developing green energy. However, 91
2. T.P.Ngoc et al/ No.19_Dec 2020|p.89-94 developing wind energy on land is facing many The SWOT analytical method is a strategic difficulties in site clearance. Also, solar energy has planning tool for assessing the strengths, limits in finding places with high heat radiation. weaknesses, as well as the opportunities and the The development of power sources is identified as threats for intended projects to help decision Vietnam's biggest difficulty in economic makers. This tool is widely used by researchers in development in general and heavy industry in the energy sector for energy planning such as to particular. analysis Pakistan’s renewable energy sector [7], Vietnam has high potential of offshore wind Ghana’s nuclear energy sector [2], Tunisia’s energy which is not yet exploited in a scale suitable renewable energy market [4], Africa’s photovoltaic to its potential. Vietnam has set a roadmap to solar power in comparison with China [8], make a develop 800 MW of wind power by 2020; 2,000 comprehensive review for East Asian countries to MW in 2025 and 6,000 MW in 2030. However, in export green energy [1], etc. The SWOT analysis reality, Vietnam's wind power development is still method provide information and ideas for energy very limited. The total installed capacity reached plan. This research is first kind of its for the about 228 MW by 2018, only 28.5% of the plan by Vietnam offshore wind energy sector and is 2020. Exploiting offshore wind energy is a expected to help inform decision making for the sustainable direction to develop marine economy in sector. the context of climate change. This paper uses the 3. Results SWOT method to analysis the strengths and 3.1. SWOT analysis for the development of weaknesses as well as the opportunities and threats offshore wind energy in Vietnam in exploiting offshore wind energy in Vietnam. The result of SWOT analysis is as shown as a 2. Methodology quadrant form in table 1 which will be discussed in detail. Table 1. SWOT analysis quadrant for the development of offshore wind energy in Vietnam Strengths (+) Weaknesses (-) 1. Long coastline, favorable natural conditions 1. High initial investment costs 2. Potential of offshore wind energy 2. Non guaranteed infrastructure 3. Competitive price compared to other forms of 3. High operating costs renewable energy 4. High economic efficiency adapting to climate 4. Lack of financial mechanism change Opportunities (+) Threats (-) 1. Increasing energy demand 1. Policy and plan 2. Increasing national awareness of climate 2. Not availability of experienced workforce change 3. Create tourist spots 3. Dominance of fossil fuels 4. Availability of foreign investors 4. National security and defense 3.2. Strengths analysis and is built for a longer life in accordance with Vietnam, has a long coastline, favorable natural extreme sea conditions. Comparing the cost of a conditions and is considered to have great potential solar plant to a offshore wind power plant which for offshore wind power, ranked in the top 10 have the same capacity of 10MW in Kuwait, the countries with potential offshore wind power production cost of wind power is 44% lower than market in the world according to the ranking of the that of solar PV [14]. Offshore wind power is a Global Wind Energy Council [3]. Offshore wind clean and zero-emission energy. This is said to be a energy is converted into electricity by wind turbines green energy source to help sustainably developing 92
3. T.P.Ngoc et al/ No.19_Dec 2020|p.89-94 Vietnam's economy in the context of climate regional countries such as Singapore and Malaysia change. [10]. Vietnam has a potential of 475 GW of offshore The cost of offshore wind power is still high. wind energy in waters of a depth of less than 200m European countries (UK and Germany) had it at 17 [15]. The total area of Vietnam's sea depth from 0- cents per kwh in 2015 and are trying to drop this 60m is 253,483km2 and the potential capacity is cost to 12 cents per kwh by 2030 [6]. Vietnam is a 151,509GW [13]. Two areas with strong wind developing country, so the large investment cost speed are the South Central region and the area with long payback period makes high risks and from Binh Thuan to Ca Mau. The latter has a wind becomes a barrier for investors. speed from 7 to 11m/s and is the highest wind 3.4. Opportunities analysis potential region where are almost no sea storms. The former has a wind speed from 10 to 11m/s. The In the near future, nuclear power and non-hydro coastal area of Tonkin Gulf in the north of Vietnam renewable power sources such as wind and solar from Quang Ninh to Quang Tri has a wind speed of power are projected to be the major areas of growth less than 6 m/s [13]. [11]. At present, wind turbine farms in Phu Quy Vietnam's offshore wind power is assessed to islands and Bac Lieu have been operating well and have potential of over 600GW with a power factor brought about high economic efficiency with the of over 50%, sufficient to provide 2-2.5 times of the payback period for over 10 years. Khai Long country's total electricity demand by 2050 [12] . offshore wind farms in Ca Mau has a capacity of Therefore, this is a very research direction that phase 1 of 100 MW started construction in 2016. needs to be paid attention and proposed to exploit Offshore wind farms have contributed to increasing the potential of this clean energy source in the electricity production and contributed to local coming time to serve domestic consumption budgets with stable and high tax. Currently, Bac demand and develop economy. Lieu province collected the tax of US $3 million 3.3. Weaknesses analysis per year and will reach nearly US $13 million per Wind power projects with a capacity of 50- year when completing the 400 MW wind farm. Ca 100MW require an investment of US $80-160 Mau province will gain more than US $8,6 million million [9]. Development of offshore wind energy per year of tax with a wind power project of 300 requires high investment capital and long payback MW. period (from 10 to 15 years), so these projects are Offshore wind power projects bring high often difficult to attract the participation of economic efficiency, ensure energy for the investors. economy and do not cause greenhouse gas Non guaranteed infrastructure and lack of emissions. Also, it contributes to preventing coastal financial mechanism are also a major barrier for erosion and creating unique tourism places, investors in offshore wind power. Currently, learning places for students and researchers. In offshore wind power projects are approved for 2019, Bac Lieu Wind Power Area as a typical investment but the power transmission network is tourist destination was officially recognized by the limited. Many curent offshore wind power projects Mekong Delta Tourism Association. Through the have their capacity cut due to overloaded electrical development of wind power projects and creating grid. This leads to reducing the economic efficiency tourist attractions for the community, people's of projects and extending the payback period. awareness of green economy development and Offshore wind power projects are often in areas environmental protection will be enhanced. with low load. So, it takes a lot of time to build Many international investors have been transmission lines to connect to the electrical grid. interested and invested in offshore wind energy in Also, very long time for compensation and Vietnam. Two offshore wind power projects has clearance is also a risk for investors. great economic value will be developed in Vietnam The high cost of underground cables in the are Thang Long offshore wind power project in power transmission makes offshore wind power in Binh Thuan province (US $11,9 billion) and Vietnam become more expensive than other offshore wind power in Soc Trang (US $300 93
4. T.P.Ngoc et al/ No.19_Dec 2020|p.89-94 million). Both of them are developed by investors national security when some projects has the from the UK. participation of foreign investors. 3.5. Threats analysis 4. Conclusions Currently, Vietnam has not developed a strategy In the context of climate change, offshore wind for development of offshore wind power. Offshore power development is an indispensable solution to wind power development in Vietnam has not been a long-term and sustainable future. The strength of integrated into marine spatial planning. This makes offshore wind energy requires Vietnam to be it difficult for investors to build projects. Also, the prepared for exploiting this source at a scale conflict between developing wind power projects appropriate to its potential. To take advantage of and fisheries in coastal areas is a challenge for strengths, it is necessary to invest in researching policy makers. and assessing potentials to designing projects with Mechanism and policy on development of appropriate capacity scales. offshore wind power projects such as licensing, An important weakness that needs attention is appraisal, evaluation of environmental impacts, sea the financial issue of offshore wind energy projects. lease, carbon tax, electricity purchase price, power Therefore, it is necessary to implement a financial purchase and sale contract, supporting industries, policy to support projects and to have a mechanism wind power projects combined with experienced to ensure stable operation according to the design tourism, etc are still unclear and difficult to attract capacity. Opportunities for successful investors. implementation of offshore wind energy projects in Offshore wind power with high levels of Vietnam are numerous. There have been many science and technology is a new field in Vietnam. international investors interested in Vietnam's Many investors have financial resources but are not renewable energy development program. qualified enough in technology to build and manage Threats found are common problems for projects. In contrast, many investors with sufficient developing countries. The issue of territorial technological capacity cannot mobilize financial sovereignty and national security in developing resources. The level of science, technology and countries is not as strict as in developed countries. human resources of Vietnam on offshore wind This can lead to conflict to fisheries and skepticism power is still limited. for the implementation of projects in important Vietnam has not developed supporting strategic locations. Therefore, Vietnam needs to industries related to offshore wind power projects. finalize its offshore wind energy development plan This leads to high operating and maintenance costs and integrate it into marine spatial planning. Also, compare to solar power energy in the country. publicize information and attract the attention of the community to raise their awareness in developing The energy policies currently favoring the use offshore wind energy for marine economy, towards of fossil fuels could hinder the entry of other protecting sovereignty and adapting to climate alternative energies. The government subsidizes change. fossil fuels for people leads to distort the market and hinder the development of competitive The dominance of fossil fuels also hinders alternative energy. Moreover, managers tend to pay investors in offshore wind energy. The government more attention to short-term economic growth should abandon subsidies and adopt policies to instead of long-term sustainable development. This reduce fossil fuel use. discourages investors and businesses from investing Finally, offshore wind projects can only be in new areas such as offshore wind power. successfully implemented in the event of meeting Regional cooperation is indispensable for financial needs. Therefore, it is necessary to have a promoting offshore wind power projects. However, financial mechanism to support these projects offshore wind power projects occupy a large area of appropriately. As discussed above, financial factors land, so the lease of coastal land raises conflict to are always a difficult problem for offshore wind fisheries and the issue of territorial sovereignty and energy projects, especially for developing countries like Vietnam. 94
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6. T.P.Ngoc et al/ No.19_Dec 2020|p.89-94 NĂNG LƯỢNG GIÓ NGOÀI KHƠI PHỤC VỤ PHÁT TRIỂN KINH TẾ BIỂN BỀN VỮNG TRONG BỐI CẢNH BIẾN ĐỔI KHÍ HẬU Trịnh Phương Ngọc, Trần Thị Nhung Thông tin bài viết Tóm tắt Nghiên cứu này đánh giá sự chuẩn bị sẵn sàng của Việt Nam cho chương trình Ngày nhận bài: năng lượng gió ngoài khơi bằng phương pháp phân tích SWOT. Nghiên cứu 20/8/2020 chỉ ra rằng Việt Nam có rất nhiều thế mạnh và cơ hội khiến cho việc đầu tư vào Ngày duyệt đăng: năng lượng gió ngoài khơi trở thành một lựa chọn hiệu quả về mặt kinh tế 10/12/2020 trong bối cảnh biến đổi khí hậu. Mặc dù Việt Nam đã nỗ lực để đáp ứng các yêu cầu về cấp phép và hợp đồng đối với lĩnh vực điện gió ngoài khơi, vẫn còn Từ khóa: một số lỗ hổng quan trọng có thể làm chậm trễ quá trình này. Các vấn đề như chính sách và quy hoạch, hệ thống cơ sở hạ tầng, nguồn nhân lực công nghệ năng lượng gió ngoài khơi, phát triển kinh tế biển, biến cao, chủ quyền lãnh thổ và an ninh quốc gia là những mối đe dọa đối với việc đổi khí hậu, phân tích triển khai và vận hành suôn sẻ của một nhà máy điện gió ngoài khơi. Do đó, SWOT, Việt Nam. nghiên cứu đã khuyến nghị Chính phủ Việt Nam cần hết sức lưu ý đến những nội dung này. Ngoài ra, một điểm yếu cụ thể đã được xem xét là tài chính và cung cấp một số phương án tài trợ cho sự phát triển của ngành. Việt Nam cần hoàn thiện quy hoạch năng lượng gió ngoài khơi và xây dựng cơ chế chính sách phù hợp để thu hút các nhà đầu tư. 96