Enterprise Energy, a company based in the United Kingdom has presented a proposal for the Ke Ga offshore wind farm, with total capacity of 3,400 megawatts (MW) and a price tag of $11.9 billion USD.
Ian Hatton, Chairman of Enterprise Energy said that funding for the giant project will be sourced internationally. According to Hatton: “We have the high-graded Ke Ga Offshore Wind Development Zone (Ke Ga OWDZ), offshore southern Vietnam, where we believe our approach has the potential to deliver utility-scale offshore wind energy development within the government’s price expectations.”
The Ke Ga project, if approved, will be the largest offshore wind power project not only in Vietnam, but also in Southeast Asia, with its success providing a large amount of clean electricity for the country.
The proposed Binh Thuan province office offshore wind project
However, Tran Viet Ngai, Chairman of the Vietnam Energy Association (VEA), pointed out that Ke Ga project’s financial feasibility is unclear at this time. According to Tran, the government’s guaranteed 20-year price of 9.8 US cents per kilowatt-hour (kWh) for offshore projects is applied to all grid-connected wind farms starting operation before November 1, 2021.
However the Ke Ga project will not be launched until 2022 so its unknown at this time whether the government will give the preferential 9.8 US cent rate to the new project. According to representatives of Enterprise Energy, it plans to ask the government for special incentives for the giant project to push it online sooner.
Tran of the VEA discussed the project and said: “One thing we must pay attention to is the investment in transmission lines and substations, and pinpoint who will be in charge of the consumption of the power supply, be it the investor or Electricity of Vietnam.”
The Ke Ga OWDZ is located outside of the current oil and gas production area of the Mekong Delta basin between 20 and 70 kilometers off southern Vietnam’s Binh Thuan and Ba Ria-Vung Tau provinces. Ba Ria-Vung Tau province is the location of the PetroVietnam consortium offshore yards, where the turbine foundations and offshore electrical substation platforms would be fabricated prior to installation in the zone.
If the Ke Ga project receives its next set of approvals, visitors to Vung Tau will soon see ships going out to see that are carrying parts for the wind farm and by 2022 Vietnamese citizens and companies will be receiving a part of their electricity from Asia’s largest wind farm.