With a whopping 475 GW of offshore wind, Vietnam is poised to be South East Asia’s offshore wind leader over the next decade, but clear regulatory frameworks and support schemes must be in place to capture this potential.
Time to act is now if Vietnam wants to secure these early phase projects. While the first true offshore wind projects in Vietnam will not reach COD until 2026 or later, it is crucial that the Vietnamese government put in place policies now that can support the long-term sustainable development of the sector.
GWEC is calling on the Vietnamese government to take a ‘transitional’ approach to offshore wind support schemes and to incorporate a systematic and open consultation process with the industry to design future offshore wind policy.
GWEC recommends establishing a new Feed-in-Tariff (FiT) for offshore wind that can support the initial stage of 4-5 GW of true offshore wind projects connecting to the grid prior to, or parallel to, an auction mechanism being implemented in a ‘Transition Phase’.
While auctions have helped other offshore wind markets scale-up and reduce costs quickly and could support Vietnam in doing the same, it will be crucial to set-up an auction that can transition smoothly from a FiT scheme and has scale, transparency, is technology-specific, and long-term.
An efficient and streamlined permitting process will be key to deploy new offshore wind capacity quickly in Vietnam to build up the market while simultaneously helping to meet the country’s growing energy demand, reducing expensive energy imports, and avoiding millions of tonnes of carbon emissions.