Vietnam energy plan green light is 'clear framework of intent': offshore wind pioneer

Enterprize Energy says formal approval helps it move ahead with ambitions off Asian nation

Ian Hatton, Enterprize Energy chairman.
Ian Hatton, Enterprize Energy chairman.Foto: Enterprize Energy

The developer advancing one of Asia’s largest offshore wind projects in Vietnam said approval of long-awaited national energy plan “provides a clear framework of intent” to advance wind at sea.

After several years of debate over multiple draft versions, the Vietnamese government this week signed off its latest National Power Development Plan, known as PDP8, which sets targets for its energy sector to 2030 and longer term priorities for mid-century.

An offshore wind target of 6GW by the end of the decade – slightly below the 7GW seen in earlier versions – was seen as crucial for developers seeking to move forward projects in what is considered one of Asia’s most promising markets for the sector.

“We are pleased that PDP8 has been approved, which provides a clear framework of intent to progress the utilisation of offshore wind in Vietnam,” said Ian Hatton, chairman of Enterprize Energy, which is developing the 3.4GW Thang Long project in Vietnamese waters.

“I believe the way it has been set out will play to Vietnam’s advantage as it contains the flexibility to adopt projects that are able to make a good commercial case to government. A case in point being the element of Thang Long which is proposed to power green hydrogen production,” Hatton told Recharge.

He added: “We are unique in Vietnam’s offshore sector in holding a survey consent since 2019, we have accumulated over three years of offshore wind data and subsurface surveys that enables us to move forward with formal proposals this year.

“We are in dialogue with prospective partners and the clarity from PDP8 and its formal approval has been important to [the] conclusion of that process.”

Recharge reported in 2021 how Enterprize hopes to add a green H2 element to Thang Long, which it has been developing since 2017 and owns a 50% stake in, with the remainder held by other investors.

Enterprize is not alone in seeing Vietnam as a major new offshore wind opportunity, with the likes of Orsted, Corio, CIP and Mainstream also active in the country.

However, the formal adoption of the target is far from marking the end of challenges facing developers in the Vietnamese sector, which have also included complaints over inadequate policy over power offtake agreements, subsidy mechanisms and grid expansion.

PDP8 sets a wider goal for renewables excluding hydro to account for a minimum of around 31% of heavily coal-dependent Vietnam’s power mix, up from 25% in 2020, Reuters reported.
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Published 17 May 2023, 11:29Updated 17 May 2023, 11:29
VietnamAsia-PacificOffshore