Vietnam has dual opportunity from offshore wind power: Danish Ambassador

Developing offshore wind power is a great dual opportunity for Vietnam, Danish Ambassador to Vietnam Nicolai Prytz told a seminar themed “Promoting Vietnam’s offshore wind power development: International practices and policy recommendations” in Hanoi on March 16.

This is an opportunity to provide a green and cost-effective source of energy for the country's strong economic development; and at the same time, support it to achieve its commitment to net zero emissions by 2050, made at the 26th United Nations Climate Change Conference (COP26), he stressed.

As one of the countries that strongly support Vietnam's green and sustainable energy transition, Denmark expects the Vietnamese Government to soon issue a clear and consistent legal framework, which is essential for the development of the offshore wind industry, added the diplomat.

Nguyen Duc Hien, deputy head of the Party Central Committee’s Economic Commission, said that Vietnam holds great potential and advantages for wind energy development.

By the end of 2021, the total registered capacity of offshore wind power investment in Vietnam had been around 154 GW, Hien said, adding that the draft eighth Power Master Plan sets a target to develop 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.

Mark Hutchinson, Chair of the Global Wind Energy Council (GWEC) Southeast Asia Task Force, said that there are many solutions for Vietnam to achieve the target of 7 GW of offshore wind power by 2030, such as a rapid development mechanism, a bidding mechanism, incentives through pricing.

The building of related policies and mechanisms needs a long roadmap, while the development of offshore wind power projects takes more time, he emphasised, proposing the Vietnamese Government pilot 2-3 GW of offshore wind through mixed finance sources to reduce costs.

If implemented under the bidding mechanism, it will take at least two years to remove legal barriers and enact policy measures. Therefore, the consideration and proposal of a mechanism for rapid development and implementation of pilot projects is very urgent in the Government's decision-making stage, and this mechanism should be considered and supported by the Government, stated Mark Hutchinson.

At the event, foreign experts and representatives from foreign energy groups said that as investors need certainty for large-scale offshore wind power projects, the Vietnamese Government should soon allow them to make surveys and ensure transparency in selecting them.

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