Vietnam, with its 3,000-kilometer coastline and commitment to sustainability, has set
ambitious targets to develop between 70 and 91.5 gigawatts (GW) of offshore wind
capacity by 2050. According to the Global Wind Energy Council (GWEC), Vietnam’s full
offshore wind potential is estimated at a remarkable 600 GW. With strategic steps, the
country can make offshore wind energy a cost-effective, competitive solution that
powers its future.
The GWEC’s “Vietnam Offshore Wind Competitive Investor Selection
Study” suggests that Vietnam could significantly enhance cost-efficiency in offshore
wind procurement by granting investors exclusive survey rights for at least 10 years.
This approach would allow investors to define site boundaries within larger zones
identified in Vietnam’s National Marine Spatial Plan. Exclusive survey rights could
provide investors with the time and flexibility needed to better assess project feasibility,
risks, and the surrounding environment, leading to more informed, effective
development.
After granting survey rights, GWEC recommends advancing to power purchase
agreements (PPAs) with Vietnam Electricity, where investors would bid competitively on
price. This “pay-as-bid” model ensures fair competition by allowing investors to offer
prices based on their specific site conditions, fostering a market that rewards cost-
effectiveness without compromising project quality.
Additionally, the proposed investor selection model includes a balanced risk allocation
across the Vietnamese government, electricity ratepayers, and investors. Such an
approach could accelerate project timelines, increase investor interest, and ensure a
stable, competitive market for offshore wind energy.
By implementing these strategies, Vietnam can attract global investors, drive offshore
wind development, and make significant strides toward its renewable energy targets,
positioning itself as a leader in Asia’s sustainable energy transition.
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