Asia’s fast-growing offshore wind market has been drawing significant interest amongst developers, investors and financiers from across the world. In this report, we set out a brief overview of the Vietnam wind market, the key legal issues for investors and the challenges that they need to consider when investing in offshore wind in Vietnam.
Natural Conditions of Vietnam
At the centre of this dynamic region, Vietnam, with more than 3,000 kilometres of coast line and huge unexploited wind power potential, is emerging as a potential new hot spot for the global offshore wind industry.
Vietnam has a coastline of over 3,000km with reasonable water depths and promising OSW conditions
Market conditions
In 2016, the Government of Vietnam updated its national master power development plan (Master Plan 7) setting out its vision for the power industry until 2030. Master Plan 7 sets a target of 800MW of wind energy by 2020 and 6GW by 2030. The next master power development plan (Master Plan 8) which is currently under development for the period up to 2045 could increase the wind energy target to over 11GW by 2025.
The Government is potentially targeting over 11GW of wind energy by 2025.
Key legal considerations
In order to meet these targets, Vietnam’s Government has rolled out a series of regulations aimed at clarifying the legal framework and incentives for the development of renewable energy projects, including a competitive statutory feed-in tariff. These policy developments, combined with a decline in global manufacturing costs for the technology necessary to leverage renewable energy sources, have generated significant interest among prospective investors.
Vietnam’s Government has rolled out a series of regulations and incentives for the development of renewable energy projects
What's next?
While relatively smaller onshore renewable energy projects are moving ahead, there remain a number of key hurdles for the development of largescale offshore wind in Vietnam and it is likely that further regulatory changes may be needed to propel Vietnam into the group of regional leaders in attracting the international offshore wind community and significant capital and expertise required to make these projects successful.
There remain a number of key hurdles for the development of largescale offshore wind in Vietnam.
Vietnam Offshore Wind:
Where to from here?
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