JERA accompanies Viet Nam to harmonize economic and environmental benefits

In an interview with the Viet Nam Government Portal, Mr. Steven Winn, Chief Global Strategist and Senior Managing Executive Officer of JERA Co. Inc. (Japan) shared about strategy, strengths, experiences and policy recommendations.

In achieving the goals of energy security, reasonable electricity tariff and carbon emission reduction under COP26 commitment, JERA - the world's leading energy corporation can make an energy strategic choice suitable to the Vietnamese market?

Mr. Steven Winn: JERA is a leading world energy player based in Japan. We are the largest shipper of LNG, top 5 in terms of global generation (with approximately 80 GW) and a growing renewables business that is approaching 5 GW across Europe, North America and Asia.

In addition, we are a global leader in low carbon fuels and aims to reduce the carbon emissions of power plants by 20% by 2030. Also, we are investing in ammonia production facilities and modifying our thermal power plants to burn ammonia and hydrogen.

We are developing 3 energy projects in Viet Nam. Accordingly, we implement the transition of using ammonia and hydrogen to replace natural gas, in order to accompany Viet Nam in ensuring its commitment to environmental protection and sustainable development.

Relating to energy strategy, the challenges of every supplier are very similar. In our point of view, it is important to balance three factors: (1) Reliable energy to support industry and customer requirements; 2) Low cost energy to support economic growth and prosperity; (3) The transition to zero emissions to give future generations a bright future.

JERA commits to all three of these contents and can support and accompany Viet Nam in carrying out the tasks and goals.

We affirm the role of renewable energy but LNG is also an important bridge. It is cleaner than coal, it is reliable, and it is low cost. The infrastructure that we build can be repurposed for low carbon fuels when they are available in sufficient quantity and at a reasonable cost.

Based on the experience of investing and operating power projects in the world, what lessons learnt can be applied to Vietnam's energy market to promote the efficient development of power projects?

Mr. Steven Winn: the most important lessons from JERA's experience is that large scale power projects are complex. So, firstly, it is necessary to make sure about construction and equipment. In the process of construction and development, many errors may occur related to fuel supply, construction of LNG infrastructure,...

Therefore, Government, developers, and local partners must work together to ensure thar a project produces power on-time, with high reliability and at reasonable cost.

To help investors raise capital and create a competitive environment in the energy industry, what policies should the Government put in place?

Mr. Steven Winn: The most important support the Government can provide is to create process certainty. In my opinion, the Government needs to come up with a clear roadmap, such as building a specific roadmap for the structure and organization to buy electricity.

The government needs to protect its population from cost increases and potential project failure. The best way to accomplish this is to begin with clear goals, give clear direction to developers, and commit to project requirements (power purchase arrangements, permits, regulation) that match international lending standards.

In the competition with other investors in Viet Nam, what factor does JERA consider to be your most important advantage? Could you please share about JERA's strategy in Viet Nam?

Mr. Steven Winn: JERA is one of a small number of companies globally that has experience in every aspect of the type of project that Viet Nam needs. We build and operate large power plants, we build and operate large LNG storage and regas facilities, we are the largest LNG shipper, and we are a leading buyer of LNG globally. To complete a project of this scale successfully, prior experience is of key importance.

Strategically, JERA is committed to expanding energy security across Asia. In which, Southeast Asia is one of our focus areas. Viet Nam has a large population, fast-growing industry, and high demand for electricity and fuel. This is an interesting economy with a lot of potential. JERA is committed to supporting Viet Nam's growth long into the future./.