Vietnam and Singapore sign agreement to export renewable energy by 2030

The cooperation agreement, signed during the official visit of Vietnamese Prime Minister Pham Minh Chinh to Singapore on February 10th, marks a new development step of the National Oil and Gas Group of Vietnam in the new business area of renewable energy.

The project, which is expected to have a commercial electricity flow by 2030, is in line with the Vietnamese government's policy of establishing a "Digital and Green Economic Partner" relationship between Vietnam and Singapore.

PTSC CEO Le Manh Cuong has said that the cooperation mechanism, decision-making mechanism, capital contribution ratio among parties, plans for preparing and implementing the project, as well as the plan to establish a joint venture company when all conditions are met are all detailed in the agreement.

Despite the technical difficulties associated with transporting electricity such a long distance through an undersea cable, the PTSC CEO has said that energy storage systems (ESS) will be used to minimize energy loss during transportation.

The project also raises issues of passing undersea power cables through the waters of a third country. However, the PTSC CEO has said that ASEAN countries are implementing a power grid interconnection program, so the cooperation in exporting clean energy from Vietnam to Singapore will contribute to the realization of this program.

The project is expected to help Singapore achieve its goal of importing 30% of its electricity demand by 2035 from clean energy sources, as well as its progressive carbon tax roadmap. 

Businesses and countries like Singapore will be willing to pay a corresponding cost for this green energy source.

The timeline for the project is expected to be a minimum of 5-7 years before commercial power generation can be achieved. 

The relevant agencies in Vietnam will need to create a legal corridor and approve surveys and exploitation in order for the project to move forward.

This project represents an important step towards achieving sustainable and renewable energy sources in the region and is likely to have a significant impact on the energy markets of Vietnam and Singapore.

Source: VGP