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Wednesday, 21/10/2020 | 19:43:20 GMT+7
Denmark, WB propose roadmap for Vietnam’s offshore wind power development

The Danish Energy Agency and the World Bank Group presented their studies and recommendations on the development of the offshore wind power sector to the Vietnamese Government during a two-day international conference, which took place on September 22, just ahead of the release of the new Power Development Plan VIII outlining the pathway for the next 10 years of the power sector in Vietnam with a vision toward 2045

23/09/2020 09:48:02

Their studies also recommended that 10 gigawatts of offshore wind power could be in operation in Vietnam by 2030.

At the conference, the consultants presented their studies on various aspects, including the assessment of potential and grid transmission capacity, the current local supply chain capacity, opportunities and challenges in offshore development, policy and management experience from countries with an advanced offshore industry as well as recommendations on a roadmap for offshore wind power development.

Denmark, WB propose roadmap for Vietnam’s offshore wind power development - 1

The Phu Lac wind power plant in Binh Thuan Province. The Danish Energy Agency and the World Bank Group presented their studies and recommendations on the development of the offshore wind power sector to the Vietnamese Government during a two-day international conference, which took place on September 22 – PHOTO: VGP

“The Vietnamese Government is always committed to the development of a sustainable energy sector and the timing now is very critical with the preparation of our National Power Development Plan VIII by the Ministry of Trade and Industry being underway. We appreciate the advice and recommendations from Denmark and the World Bank, our long-term partners who possess many years of experience and knowledge in renewable energy,” Hoang Tien Dung, head of the Electricity and Renewable Energy Department under the Ministry of Industry and Trade, stated at the event.

Key recommendations in the “Input to Roadmap for Offshore Wind Power Development in Vietnam” presented by the Danish Energy Agency and the World Bank Group included commissioning some large-scale projects in phases in order to kick-start the sector, and streamlining licensing procedures for offshore wind projects.

Apart from the importance of clear, long-term and progressive capacity deployment targets, a sound legal framework and a financeable Power Purchase Agreement in line with international practices are key to help open the door for capital investment.

“As Vietnam is keen on moving toward the green transition of its energy sector, offshore wind power will definitely be one of the most cost-effective options as proven in many countries, including Denmark,” said Kim Højlund Christensen, Ambassador of Denmark in Vietnam.

A developed offshore wind industry will not only provide a new source of clean energy and contribute to climate change mitigation but also create a significant number of new jobs for local people, while creating a new maritime economy and attracting significant new investments, he added.

Addressing the conference, Rahul Kitchlu, Program Leader for Infrastructure and Energy Sector Coordinator at the World Bank, said the World Bank's studies show the important economic benefits of deploying offshore wind at a scale of up to 10 gigawatts by 2030, which can render 190,000-700,000 full-time years of employment. It will be important to take this into consideration during the development of the National Power Development Plan VIII.

The conference took place both offline in Hanoi City and online through a video link between Hanoi, Copenhagen and other locations in the world, attracting broad participation from Vietnamese decision-makers and managers, and international and local professionals from the offshore wind industry and supply chain and the private sector.

The outcome of the conference will be an important input for shaping the policy targets in the Vietnamese National Power Development Plan VIII, which is the most important policy guiding Vietnam’s development in the energy sector in the next 10 years with a vision toward 2045.