Vietnam Will Struggle to Meet 2030 Offshore wind goal, Top Official Says

Francesco Guarascio
Thursday, November 9, 2023

Vietnam will have a hard time reaching its offshore wind power target for 2030, a top executive at a state-owned energy company said, with foreign investors also warning of multiple regulatory hurdles that would need to be cleared.

The Southeast Asian country has good offshore wind power potential given strong winds and shallow waters near densely populated areas, according to the World Bank, which estimates the sector could add at least $50 billion to Vietnam's economy.

Offshore wind is also a priority for Group of Seven (G7) members that have promised funds to boost the country's renewable energy sources and reduce its reliance on coal. 

But the regulatory environment and challenging conditions for the industry globally are complicating Vietnam's plans to install 6 gigawatts (GW) of offshore wind capacity by 2030 - from zero now - roughly the equivalent of installing what the world added in the first half of 2023, according to industry association World Forum Offshore Wind. 

"It is very difficult to reach 6 GW by 2030," the Vietnamese executive said, declining to be named because he was not allowed to speak to media. 

Industry experts have estimated that the construction of an offshore wind farm usually takes more than five years, and often much longer. 

Vietnam's environment ministry - in charge of climate policy and which takes the lead in talks with G7 partners on investment funds for wind - did not reply to a request for comment. 

Vietnam's industry ministry and state-owned energy parent PetroVietnam likewise did not immediately respond to requests for comment about the achievability of the 2030 wind power goal. 

Vietnam currently has no offshore wind project, although there was a surge in onshore wind and solar energy capacity in recent years. Many of those new installations, though, have struggled to connect to the country's underdeveloped power grid. 

Vietnam's foray into offshore wind comes just as the industry faces higher borrowing costs and supply delays that have derailed projects across the world, including in the United States and Britain. 

G7 members have raised concerns for Vietnam's "lack of appropriate policies, regulations and procedures" in a document prepared ahead of the UN Climate Change Conference that begins on Nov. 30 in Dubai.

The paper takes stock of discussions with Hanoi over climate funding and its commitment to cut carbon emissions. 

Finalized in late October and reviewed by Reuters, the document warns of insufficient data on offshore wind speed and the structure of the seabed off Vietnam. It also notes the country has limited domestic financial capacity and little experience in the offshore sector. 

Marine spaces also need to be clearly designated, the document says, which would help avoid the risk that areas could be later assigned for military or shipping purposes and encroach on offshore wind farms. 

Hanoi has listed marine spatial planning and offshore wind regulations as actions potentially to be finalized in 2025, according to a draft document reviewed by Reuters that lists projects that could be eligible for international funding. 

The document is expected to be approved before the UN conference in Dubai this month. 

(Reuters - Reporting by Francesco Guarascio; Additional reporting by Florence Tan; Editing by Tom Hogue)

Categories: Energy Renewable Energy Industry News Offshore Wind Activity Asia

Related Stories

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Brownfield Output Decline Accelerates, says IEA

PV Drilling Takes Ownership of Noble Corporation’s Stacked Jack-Up Rig

Hanwha Ocean Enlists ABB for Singapore’s First Floating LNG Terminal

POSH Set to Tow Nguya FLNG from China to Eni’s Congo Field

Synergy Marine Group Completes Conversion of LNG Vessel to FSRU

TotalEnergies Inks 10-Year LNG Supply Deal with South Korea’s KOGAS

Japan Picks Wood Mackenzie to Assess Trump-Backed Alaska LNG Scheme

Marco Polo Picks Salt Ship Design for Next-Gen Offshore Energy CSOV

Current News

MODEC Ramps Up Hammerhead FPSO Work After ExxonMobil's Go-Ahead

Aesen, DOC JV Targets Subsea Cable Logistics

Timor Gap Boosts Stake in Finder Energy’s Timor-Leste Oil Fields

SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico

Russia Targets 2028 for Sakhalin-3 Gas Project Start Up

Seatrium Secures ABS Backing for Deepwater FPSO Design

MDL Secures Cable Laying Job in Asia Pacific

Hibiscus Petroleum Starts Drilling at Teal West Field off UK

Yinson Production Nets DNV Approval for New FPSO Hull Design

Hanwha Ocean's Tidal Action Drillship Starts Maiden Job with Petrobras

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com