The Danish Energy Agency and the World Bank Group have prepared a roadmap for the development of offshore wind in Vietnam, which recommends that 10 GW of offshore wind power could be operational in the country by 2030.
The Input to Roadmap for Offshore Wind Power Development in Vietnam report also recommends setting up progressive capacity deployment targets to coordinate policies on the government level and give the industry confidence to make long-term investments in infrastructure, supply chains and technology.
The parties claim that a sound legal framework and a financeable power purchase agreement (PPA) are key to offset new market risks and help open the door to capital investment at the level needed to build a mature industry.
Additionally, DEA and the World Bank suggest mandating a government agency to act as a single point of contact to streamline the permitting and consent processes for projects, as well as awarding large-scale demo projects to be commissioned in phases in order to kick-start the sector.
The presentation took place at a conference just ahead the release of the new Power Development Plan 8 outlining the pathway for the next ten years of power sector development in Vietnam with a vision for 2045.
At the event, the consultants presented their studies on the assessment of potential and grid transmission capacity, current local supply chain capacity, opportunities and challenges in offshore development, as well as policy and management experience from countries with advanced industry.
The studies will be finalized taking into consideration feedback from the conference participants and will be submitted to the Vietnamese government in the near future.
In 2013, Vietnam and Denmark entered a long-term cooperation agreement with the purpose of promoting a transition in Vietnam to a low-carbon economy.
The Danish Energy Agency and the Electricity and Renewable Energy Authority (EREA) of Vietnam initiated a partnership last year with the purpose of mapping the potential for offshore wind off the coast of Vietnam.