How Vietnam can unleash its offshore wind potential

It can procure OFW more cost-effectively upon awarding investors exclusive survey rights. 

The Global Wind Energy Council (GWEC) has released a report that outlines steps Vietnam could take to fuel the expansion of  its offshore wind sector. 

Vietnam has committed to an offshore wind development target of between 70 to 91.5 gigawatts (GW) by 2050.

With a 3,000-kilometre coastline, the country's offshore wind development potential is estimated at 600 GW, according to a Global Wind Energy Council report. 

GWEC's  “Vietnam Offshore Wind Competitive Investor Selection Study" said that the country can procure offshore wind more cost-effectively if it awards investors exclusive survey rights for at least 10 years to freely define site boundaries within larger areas outlined in Vietnam’s National Marine Spatial Plan. 

This would focus on the understanding of context, project feasibility, risk identification and the developer’s capability to build the projects instead of merely looking at price assessment. 

The next step involves the awarding of a power purchase agreement with Vietnam Electricity and a price-only competitive selection. To ensure competition, each investor would bid on their site on a pay-as-bid basis. 

The proposed investor selection model also includes a balanced risk allocation amongst the Vietnamese government, electricity ratepayers and investors. If implemented, this would attract substantial investor interest, and accelerate the development of offshore wind projects in Vietnam.