It will establish an offshore wind power purchase mechanism to stimulate the market in a bid to overcome a lack of regulation and technical standards for the production, installation, operation, and maintenance of offshore wind power.
Vietnam has set a goal of reaching 30 gigawatts (GW) to 50GW of offshore wind power generating capacity by 2030 and 21GW by 2045.
It will develop an offshore wind power plant which could “generate sustainable benefits”, according to a webinar of Vietnam Union of Science and Technology Associations (VUSTA).
VUSTA chairman Phan Xuan Dung said offshore wind power development will help to create new jobs, attract investment and reduce carbon emission.
In February, Vietnam’s Ministry of Industry and Trade (MOIT) issued its national power development plan VIII (PDPVIII). It includes plans to increase wind energy production from 600MW in 2020 to over 11GW – 12GW in 2030 and solar power will grow to 19GW–20GW in 2030. 35 potential offshore wind projects are included in the plan.
It has been reported that the country will need $320.6 billion investment for the development of its power network between now and 2045.
Nick Wang of Pinsent Masons, the law firm behind Out-Law, said: “Vietnam has significant potential for offshore wind. The long coastline, good wind resource and shallow nearshore waters all contribute to making Vietnam South East Asia's best offshore wind country. However, the regulatory environment remains evolving, and further process may have to be made, particular on the regulatory framework as well as the power purchase agreement (PPA) terms and the management of project extraneous risks before we are likely to see the resource being exploited to its full potential.”
By: Pinsent Masons