During the visit to Singapore, the Vietnam's Prime Minister supported Singaporean businesses to cooperate with the Vietnamese side to implement offshore wind power projects for export to Singapore. Currently, Vietnam and Singapore are discussing a plan to build a power transmission line through the East Sea.
PetroVietnam Technical Services Corporation (PTSC) and Sembcorp Utilities Pte. Ltd. (SCU) signed a cooperation agreement to invest and export electricity to Singapore from offshore renewable energy sources in Vietnam. Sembcorp invests in Vietnam through Sembcorp Development (SCD) in the field of industrial park infrastructure, real estate, etc. and Sembcorp Utilities (SCU) in the energy sector. The consortium of SCD and the Corporation for Investment and Industrial Development (Becamex) has established the Vietnam - Singapore Industrial Park Company (VSIP) to implement VSIP projects. Currently, there are 12 VSIPs present in 9 provinces and cities of Vietnam that have been put into operation with a high occupancy rate (about 83.2%), attracted USD 17.6 billion of total investment capital for about 900 projects, creating jobs for nearly 300,000 workers.
According to the content of the agreement, PTSC and SCU will cooperate to invest in an offshore wind farm in Vietnam with an initial capacity of about 2.3 GW and export electricity directly to Singapore via a high-voltage underground cable.The agreement stipulates in detail the cooperation mechanism, decision-making mechanism, capital contribution ratio between the parties, the plan to carry out the preparation and implementation of the project as well as the plan to establish the joint venture company when all conditions are met.
The Head of Government also supported Sembcorp to implement renewable energy projects in Vietnam, including a cooperation plan between Sembcorp and Vietnam Petroleum Technical Services Corporation (PTSC), to implementing offshore wind power projects for export to Singapore. Currently, Vietnam and Singapore are discussing a plan to build a power transmission line through the East Sea on the basis of harmonised benefits and shared risks.
To achieve net zero carbon emissions by 2050, the Singapore Government plans to import 30% of its electricity needs by 2035 from clean energy sources as well as introduce a progressive carbon tax roadmap, from S$5/tCO2e (tonnes of CO2 equivalent) today to $25/tCO2e in 2024-2025, $45/tCO2e in 2026-2027, to $50-80/tCO2e in 2030.
Currently, ASEAN countries are implementing a grid connection program, so the cooperation in exporting clean electricity from Vietnam to Singapore will contribute to the realisation of this program. The Singapore government is also participating in the Laos - Thailand - Malaysia - Singapore (LTMS) grid connection and has imported electricity from Laos via the LTMS grid. With the trend of energy transition taking place strongly globally, the demand for clean electricity of countries will increase. Meanwhile, Vietnam is the only country in ASEAN with a large-scale offshore wind energy source (according to the World Bank's assessment, technically, Vietnam's offshore wind potential is about 599 GW).
source: the Internet