A Study of the Development Strategy of the Wind Power Sector in Vietnam
Received: 7 May2024 | Revised: 21 May 2024 | Accepted: 22 May 2024 | Online: 11 June 2024
Corresponding author: Luong Ngoc Giap
Abstract
Nowadays, the wind power market is growing rapidly, while the cost of wind power equipment is decreasing, so Vietnam is currently building many wind power projects to ensure green energy development in its power system. However, some barriers in price mechanisms, and economic and technical conditions have also caused disadvantages in the process of developing wind power projects. This paper studies the SWOT-TOWS analysis to evaluate in greater detail the strengths, weaknesses, opportunities, and threat factors linked to it. Then the former compares the internal and external factors influencing the wind power industry on the way it exploits potential strategies. In general, Vietnam has satisfactory wind power development potential, and the wind power sector has been supported by a number of strong but unstable policies in the past. The rapid development of wind power capacity in recent times has also led to great challenges for investors and managers in actual operating conditions. Currently, investment costs for wind power plants are still quite high, Feed in Tariff (FIT) prices are not stable, transmission grid capacity is limited, and environmental treatment issues during construction and operation have not been fully considered.
Keywords:
wind power, policy, SWOT, TOWSDownloads
References
World Energy Outlook 2023, Paris, France: IEA, 2023
Yu. A. Ul’yanin, V. V. Kharitonov, and D. Yu. Yurshina, "Forecasting the Dynamics of the Depletion of Conventional Energy Resources," Studies on Russian Economic Development, vol. 29, no. 2, pp. 153–160, Mar. 2018.
Y. Kassem, H. Gokcekus, I. A. A. Albakoush, and K. Sh. B. Abdullah, "Solar-Powered Solutions for the Water and Energy Shortage Problem: The Case Study of Nahr El Bared, Lebanon," Engineering, Technology & Applied Science Research, vol. 13, no. 3, pp. 10861–10869, Jun. 2023.
V. H. M. Nguyen, L. D. L. Nguyen, C. V. Vo, and B. T. T. Phan, "Green Scenarios for Power Generation in Vietnam by 2030," Engineering, Technology & Applied Science Research, vol. 9, no. 2, pp. 4019–4026, Apr. 2019.
A. B. Siddik, S. Khan, U. Khan, L. Yong, and M. Murshed, "The role of renewable energy finance in achieving low-carbon growth: contextual evidence from leading renewable energy-investing countries," Energy, vol. 270, May 2023, Art. no. 126864.
M. Zhu, Y. Qi, and N. Hultman, "Low-carbon energy transition from the commanding heights: How state-owned enterprises drive China’s wind power ‘miracle," Energy Research & Social Science, vol. 85, Mar. 2022, Art. no. 102392.
J. Sissingh and E. Arends, "Wind Energy Potential Vietnam," Netherlands Enterprise Agency, 717144, Jul. 2018.
D. X. Dong, P. V. Minh, N. Q. Ninh, and D. X. Dinh, "Development of Renewable Energy Sources to Serve Agriculture in Vietnam: A Strategic Assessment using the SWOT Analysis," Engineering, Technology & Applied Science Research, vol. 13, no. 5, pp. 11721–11727, Oct. 2023.
H. Weihrich, "The TOWS matrix—A tool for situational analysis," Long Range Planning, vol. 15, no. 2, pp. 54–66, Apr. 1982.
F. M. Guangul and G. T. Chala, "SWOT Analysis of Wind Energy as a Promising Conventional Fuels Substitute," in 2019 4th MEC International Conference on Big Data and Smart City (ICBDSC), Muscat, Oman, Jan. 2019, pp. 1–6.
M. Irfan, Y. Hao, M. K. Panjwani, D. Khan, A. A. Chandio, and H. Li, "Competitive assessment of South Asia’s wind power industry: SWOT analysis and value chain combined model," Energy Strategy Reviews, vol. 32, Nov. 2020, Art. no. 100540.
J. Y. Li and H. Zhang, "Analyzing the Wind Power Industry of China Based on SWOT," Advanced Materials Research, vol. 953–954, pp. 493–496, Jun. 2014.
C. Stingheru, C. Gasparotti, A. Raileanu, and E. Rusu, "A SWOT Analysis of the Marine Energy Sector at the European Level," Apr. 2018.
T. Wyns and A. Khatchadourian, "Situational analysis of EU renewable energy legislation," Climate Policy, vol. 16, no. 5, pp. 568–585, Jul. 2016.
O. Gottfried, D. De Clercq, E. Blair, X. Weng, and C. Wang, "SWOT-AHP-TOWS analysis of private investment behavior in the Chinese biogas sector," Journal of Cleaner Production, vol. 184, pp. 632–647, May 2018.
N. Trịnh Phương and N. Trần Thi, "Offshore Wind Energy for Sustainable Marine Economic Development in the Contex of Climate Change," Scientific Journal of Tan Trao Univercity, vol. 6, no. 19, pp. 89–94, Jan. 2021.
Offshore Wind Roadmap for Vietnam, International Bank for Reconstruction and Development, Washington, DC, USA: The World Bank, Jun. 2021.
Wind energy resource atlas of Southeast Asia, New York, NY, USA: The World Bank Asia Alternative Energy Program, Sep. 2001.
Decision No. 37/2011/QDTTg on the mechanism supporting the development of wind power project in Vietnam, Hanoi, Vietnam, 2011.
Decision No. 39/2018/QD-TTg, Amending several Decision 37/2011/QD-TTg on provision of assistance in development of wind power projects in Vietnam, Hanoi, Vietnam, Sep. 2018.
Viet Nam Energy Outlook Report 2021, EREA & DEA, 2022.
M. S. Nazir, N. Ali, M. Bilal, and H. M. N. Iqbal, "Potential environmental impacts of wind energy development: A global perspective," Current Opinion in Environmental Science & Health, vol. 13, pp. 85–90, Feb. 2020.
D. N. Truong and V. T. Bui, "Hybrid PSO-Optimized ANFIS-Based Model to Improve Dynamic Voltage Stability," Engineering, Technology & Applied Science Research, vol. 9, no. 4, pp. 4384–4388, Aug. 2019.
N. Tazi, J. Kim, Y. Bouzidi, E. Chatelet, and G. Liu, "Waste and material flow analysis in the end-of-life wind energy system," Resources, Conservation and Recycling, vol. 145, pp. 199–207, Jun. 2019.
Developing End-of-Life solutions for Solar Photovoltaics and Wind Power systems in Viet Nam, Institute of Energy, UNDP, 2021.
Sharing responsibilities for power supply in 2024 peak dry season,’" EVN, Apr. 2024. https://en.evn.com.vn/d6/news/Sharing-responsibilities-for-power-supply-in-2024-peak-dry-season-66-163-4043.aspx.
M. Ha-Duong, "COP26 : Vietnam carbon neutral in 2050," Tia Sáng, vol. 23, pp. 10–12, Dec. 2021.
M. P. Nguyen, T. Ponomarenko, and N. Nguyen, "Energy Transition in Vietnam: A Strategic Analysis and Forecast," Sustainability, vol. 16, no. 5, Feb. 2024,Art. no.1969.
Circular No.15/2022/TT-BCT about framework for electricity prices of transitional solar and wind power projects, Ministry of Industry and Trade (MoIT), 2022.
"Investors of renewable energy projects to be chosen through bidding," ICON, Apr. 2021. https://icon.com.vn/d6/en-US/news/Investors-of-renewable-energy-projects-to-be-chosen-through-bidding-60-601-173616.
N. M. Khoa, N. T. H. Van, L. K. Hung, and D. A. Tuan, "Investigation of the Impact of Large-Scale Wind Power and Solar Power Plants on a Vietnamese Transmission Network,"International Journal of Renewable Energy Development, vol. 11, no. 3, pp. 863–870, Aug. 2022.
H. T. Nguyet Nguyen and V. Vittal, "Impact of high WPPs penetration on the Vietnam Power System,"ECTI Transactions on Computer and Information Technology (ECTI-CIT), vol. 9, no. 2, pp. 142–149, Jan. 1970.
"Vietnam’s renewable energy sprung up, but localization is slow," Reccessary. https://www.reccessary.com/en/news/vn-market/vietnam-renewable-energy-sprung-up-but-localization-is-slow.
Downloads
How to Cite
License
Copyright (c) 2024 Luong Ngoc Giap, Nguyen Binh Khanh, Bui Tien Trung, Truong Nguyen Tuong An, Tran The Vinh, Le Tat Tu
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain the copyright and grant the journal the right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) after its publication in ETASR with an acknowledgement of its initial publication in this journal.
