Tien Giang, Vietnam: Harnessing the Power of Wind
The Offshore Wind Revolution
Off the picturesque coast of Tien Giang Province, Vietnam, a striking sight unfolds—36 wind turbines gracefully rotating against the backdrop of the South China Sea. These turbines play a pivotal role in generating clean energy, providing enough electricity to power approximately 200,000 households every year in Southeast Asia. Behind this ambitious offshore project lies SK Innovation E&S Co., the energy solutions arm of South Korea’s SK Innovation Co., a giant in the Asian energy sector.
Tan Phu Dong (TPD) Offshore Wind Farm
Located where the Mekong River meets the South China Sea, the Tan Phu Dong (TPD) Offshore Wind Farm stands as a significant milestone in Vietnam’s renewable energy journey. With an impressive power generation capacity of 150 megawatts (MW), this wind farm is strategically positioned about 130 kilometers from the bustling city of Ho Chi Minh. The region’s unique geographical advantages contribute to its exceptional potential for wind energy generation.
Optimal Conditions for Wind Energy
Kwon Ki-hyuk, the head of SK Innovation E&S Vietnam, revealed that the Tien Giang region benefits from consistent wind currents throughout the year, with average wind speeds between six to eight meters per second. “In Korea, we have to go far offshore to find that kind of wind, but here, it’s available right along the coast,” Kwon explains, highlighting the site’s intrinsic value for wind energy development.
A Strategic Partnership
SK E&S partnered with Gia Lai Electricity JSC (GEC), part of Vietnam’s robust TTC Group, in 2022 to bring this project to fruition. This collaboration is structured as a 55-45 ownership agreement, favoring GEC, allowing both parties to share in the revenues generated from the sale of electricity to Vietnam Electricity Corp, the state-run utility. The wind farm is projected to generate approximately 50 billion won (around $36 million) annually.
Global Expansion Goals
The TPD Offshore Wind Farm is not just an isolated project; it’s a cornerstone of SK Innovation E&S’s broader vision for global renewable energy growth. From its Vietnamese hub, the Korean energy company aims to penetrate markets across Southeast Asia, Eastern Europe, and even North America. This ambitious plan includes scaling its renewable energy capacity from 1 gigawatt (GW) today to more than 2 GW by 2030.
Diversified Renewable Projects
SK E&S commenced its renewable investment journey in Southeast Asia with a solar photovoltaic project in Ninh Thuận in 2020, boasting a capacity of 131 MW. Since then, the company has taken significant steps to explore additional projects, including a joint venture called Solwind Energy with GEC, which successfully established a 7-MW rooftop solar system in Tây Ninh Province. Plans are also underway for a noteworthy 756-MW onshore wind power plant near Vietnam’s border with Laos.
Aligning with National Goals
This proactive approach complements Vietnam’s national strategy to increase the share of renewable energy in the country’s energy mix to 30% by 2030 and a remarkable 75% by 2050. The early involvement of companies like SK Innovation E&S positions them favorably to benefit from these evolving market dynamics.
Carbon Credits as a Revenue Stream
In alignment with global decarbonization efforts, SK Innovation E&S views carbon credits as a crucial part of its renewable energy strategy. Carbon credits, or allowances, permit holders to emit a predetermined amount of greenhouse gases and are increasingly recognized as valuable corporate assets. The TPD wind farm project affords SK E&S exclusive rights to its carbon credits for a 15-year period, with expectations to generate around 260,000 tons of carbon credits annually. As the global carbon market evolves, monetizing these credits is anticipated to become a substantive source of revenue.
SK Innovation E&S’s endeavors in Tien Giang exemplify a promising fusion of innovation and environmental responsibility, establishing a cleaner, sustainable energy future for Vietnam and beyond. With ambitious plans and strategic partnerships in place, the company is poised to significantly contribute to a greener planet.