Ministry of Industry and Trade seeks feedback on OSW power pricing

Once received, this feedback will inform the agency's final recommendations to the Ministry of Industry and Trade for approval. The current pricing framework has been developed by Vietnam Electricity (EVN).

EVN submitted a report on May 23 outlining its proposed power generation pricing framework for OSW energy. Specifically, the ceiling price (excluding VAT) is VND3,975.1 per kWh in the northern region, VND3,078.9 per kWh in the south-central region, and VND3,868.5 per kWh in the southern region.

According to EVN, based on the adjusted Power Plan VIII, Vietnam aims to achieve 6,000 MW of OSW capacity by 2030. Establishing a reasonable power generation price framework is a prerequisite to attracting investment capital into this sector.

EVN stated that the average investment cost for OSW projects is approximately VND93.56 million ($3,742) per kW, equivalent to VND93 billion ($3.7 million) per MW. However, the capacity factor varies across regions, with the North achieving 38.4 per cent, the south-central region 49.6 per cent, and the south 39.5 per cent. Consequently, the average multi-year electricity output in these regions is 1.681 billion kWh, 2.171 billion kWh, and 1.728 billion kWh, respectively.

Currently, no OSW project in Vietnam has a completed feasibility study report. EVN’s calculations are based on preliminary data from the Institute of Energy, updated in accordance with the Offshore Wind Power Technology Handbook jointly developed by Vietnam and Denmark.

The power generation price framework proposed by EVN is specified by region as follows:

• Northern region (Quang Ninh, Haiphong, Thai Binh): VND3,975.1 per kWh
• South-central region (Binh Thuan): VND3,078.9 per kWh
• Southern region (Ba Ria-Vung Tau): VND3,868.5 per kWh

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