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Vietnam advised to pilot large-scale wind power projects
Minh Nguyen 23:14, 2023/03/16
Big projects coupled with a consistent regulatory framework will be essential for the development of the offshore wind industry in Vietnam.

Vietnam should award large-scale demonstration wind projects to be commissioned in phases in order to kick-start the industry.

 Henrik Scheinemann, Co-CEO of Copenhagen Offshore Partners (COP), speaks at the seminar held in Hanoi on March 16. Photo: Embassy of Denmark in Hanoi

It’s the idea shared by domestic and Danish experts in the ‘Input to Roadmap for Offshore Wind Power Development in Vietnam’ report jointly prepared by the Danish Energy Agency and World Bank.

“It is now the ripe time for the government to take action if the target of having 7GW offshore wind capacity installed by 2030 as set out in the draft Power Development Plan VIII (PDP8) is to be met,” according to the report which was presented in the seminar held in Hanoi on March 16.

Sharing the same view, Henrik Scheinemann, Co-CEO of Copenhagen Offshore Partners (COP), said 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.

He noted that the move is “critical” as the country can and will get this industry established. For that reason, it’s the time to “press forward and allow pilot projects to be instigated, a clear regulatory framework to be delivered, and for developers to share learnings to build up the local supply chain and address Vietnam’s growing thirst for green energy.”

The sharing was reached at the seminar ‘Promoting Vietnam’s Offshore Wind Power Development: International Best Practices and Policy Recommendations’ co-organized by the Vietnam Central Economic Commission and the Embassy of Denmark in Hanoi.

The event aimed at creating a forum for open dialogue and discussion among Vietnamese ministries and agencies with local and international organizations, experts, and businesses to share international experience and propose relevant policies for Vietnam to develop its offshore wind power industry.

The workshop had five keynote presentations from experienced sector managers, international experts, and researchers. The recommendations focused on giving an overview of the global offshore wind power development, requirements to kick-start the first offshore wind power projects in Vietnam, and experience in implementing offshore wind power projects in some countries, such as Denmark, the US, and Taiwan.

In addition, the experts represented pilot and special schemes for offshore wind power projects and policy implications for Vietnam, exploitation of offshore wind power resources to ensure energy security and reduce emissions.

Discussions at the event focused on What should Vietnam do to successfully kick-start its offshore wind industry? What should be done to attract the investments needed and provide confidence for the development of the industry? What are the international experiences and lessons learned in offshore wind development that Vietnam should consider?

Ideas and presentations by representatives of different stakeholders would help the Government of Vietnam to have some keynotes for its policymaking and planning.

 Danish Ambassador to Vietnam Nicolai Prytz (center) at the seminar.  

Necessity

Echoing Henrik Scheinemann, Danish Ambassador to Vietnam Nicolai Prytz in his opening remark said offshore wind is a great dual opportunity for Vietnam: an opportunity to deliver green and cost-efficient energy for the country’s economic development.

It at the same time supports Vietnam in achieving its 2050 net-zero commitment made at COP26.

Nonetheless, it’s necessary for the Vietnamese government to have a clear and consistent regulatory framework, which is essential for the development of the offshore wind industry, starting with the approval of PDP8 and exclusive offshore survey rights.

Denmark is looking forward to the move as it’s one of the strong and long supporters of Vietnam’s transformation to a green and sustainable energy sector, he noted.

Denmark, as a pioneer and a world leader in offshore wind energy since 1991 when Denmark commissioned the world’s first offshore wind energy farm, also takes lead in reducing the cost of offshore wind power to make it one of the most competitive forms of renewable energy. This is vital and a great incentive for the rapid and widespread growth of the industry in Vietnam, according to experts.

Vietnam and Denmark have developed an extraordinary government-to-government energy partnership since 2013.

Nguyen Duc Hien, Vice Chairman of the Vietnam Central Economic Commission (CEC), said at the event.  

Commenting on the regulatory framework, Nguyen Duc Hien, Vice Chairman of the Vietnam Central Economic Commission (CEC), said the institutionalization and development of mechanisms and policies to support the breakthrough development of offshore wind power remain slow and the implementation is limited.

“The PDP8 and marine spatial planning are still in the process, not yet promulgated. The assignment of sea areas to conduct a development survey of offshore wind power has not been specified in legal documents. Meanwhile, the regulations on the form of investor selection have not been adjusted appropriately,” he specified.   

In recent decades, Vietnam has experienced an average annual GDP growth rate of 7%, which has led to a significant increase in energy consumption and associated CO2 emissions. 

 Vietnam targets to have 7GW offshore wind capacity installed by 2030. Photo: Trung Nam Group
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