Vietnam to Develop Offshore Wind Power with Denmark’s Support

In a step towards providing a green and cost-effective source of energy for the country’s strong economic development and to achieve its commitment to net zero emissions by 2050, Vietnam Central Economic Commission organised a  workshop with the support of the Embassy of Denmark in Hanoi. This was to provide a platform for the experts, Ministers in Vietnam, agencies with domestic and international agencies to exchange their experience and ideas to propose policies for the county to develop its offshore wind power industry.

The workshop was organized by Copenhagen Infrastructure Partners (CIP)-  global investor in offshore wind, which is also the lead investor in the 3.5 GW La Gan Offshore Wind  Project in Vietnam.  It was also the technical advisor and organiser of the workshop.

Speaking on the occasion, the Ambassador of Denmark, Nicolai Prytz,  Denmark expressed his full support to Vietnam and said, “Offshore wind is a great dual opportunity for Vietnam: an opportunity to deliver green and cost-efficient energy for the continued economic development of the country and at the same time support Vietnam in achieving its COP 26 net-zero by 2050 commitment. Being one of the strong and long supporters of Vietnam’s transformation to a green and sustainable energy sector, Denmark is looking forward to a clear and consistent regulatory framework, which is essential for the development of the offshore wind industry, starting with the approval of the National Power Development Plan 8 and exclusive offshore survey rights.”

Highlighting the importance of wind projects, Henrik Scheinemann, Co-CEO of Copenhagen Offshore Partners, noted, “It is critical that Vietnam should focus on instigating this proven and highly effective renewable energy industry and learn from other markets that have progressed well during their journey in order to deliver an offshore wind industry that is well-suited to the country’s needs and skills. CIP is committed to support Vietnam on this journey for the long-term.”

While Nguyen Duc Hien, Deputy Head of the Party Central Committee’s Economic Commission, also expressed his confidence in Vietnam’s  great potential and advantages for wind energy development.

Commenting on the goal of Vietnam’s goal of achieving the target of 7 GW of Offhsore wind power by 2030 Mark Hutchinson, Chair of the Global Wind Energy Council (GWEC) Southeast Asia Task Force, suggested solutions like  rapid development mechanism, a bidding mechanism and incentives through pricing. By the end of 2021, the total registered capacity of offshore wind power investment in Vietnam had been around 154 GW.

He further informed that the draft eighth Power Master Plan aims at developing  about 16.12 GW of onshore and nearshore wind power and about 7 GW of offshore wind power by 2030, and 64.5 GW of this source of energy by 2045.

It was pointed  out that the policies and mechanisms to reach the target needs long roadmap, and  further proposing the Vietnamese Government pilot 2 GW  to 3 GW of offshore wind through mixed finance sources to reduce costs.

He informed that the bidding mechanism  will take at least two years to remove legal barriers and enact policy measures. Thus,the government of Vietnam should  consider the proposal with a mechanism for rapid development and implementation of pilot projects .

There was a common consensus among the experts and representative present on the occasion regarding Vietnam’s government  permission for local surveys and transparency to  select locations. This will provide certainty to the investors for large scale wind power projects.