Copenhagen Infrastructure Partners (CIP), a leading Danish offshore wind power developer, has expressed its willingness to collaborate with Vietnamese state-owned enterprises (SOEs) to advance renewable energy initiatives. Stuart Livesey, CEO of Copenhagen Offshore Partners, a partner of CIP, emphasized the importance of this collaboration during a recent discussion with Vietnamese Deputy Prime Minister Tran Hong Ha.
Livesey highlighted that state-owned enterprises must seek support from private developers to facilitate knowledge transfer, enhance supply chain access, and effectively manage risk. CIP is committed to supporting Vietnam’s green transition and aims to pioneer the country’s first offshore wind project.
CIP plans to invest $10.5 billion in the La Gan Offshore Wind Farm, a 3.5 GW offshore wind power project located in Vietnam’s central province of Binh Thuan. In March, CIP signed a memorandum of understanding (MoU) with state-owned Petrovietnam to explore collaboration on renewable energy and specific offshore wind power projects in Vietnam.
Challenges in developing offshore wind power
Despite the enthusiasm for offshore wind power, Vietnam’s regulatory framework for the industry remains underdeveloped. In June 2023, Per Mejnert Kristensen, senior vice president of Ørsted for the Asia-Pacific region, indicated that Ørsted had paused its market development activities in Vietnam due to this lack of clarity.
Petrovietnam Technical Services Corp (PTSC), Ørsted’s partner in the region, noted that the absence of detailed policies and guidelines for wind energy investment has led many foreign investors to look elsewhere.
In September 2023, the Global Wind Energy Council (GWEC) pointed out that while Vietnam holds the potential to attract offshore wind investments, delays in establishing supportive policies could deter investors and suppliers.
The Ministry of Industry and Trade is currently drafting a pilot mechanism for offshore wind power projects. Given the sector’s connection to national defense and security, the ministry plans to restrict participation to state-owned companies. However, officials in Binh Dinh province have suggested allowing state-owned enterprises to collaborate with private firms to facilitate project development.
CIP SOEs
Source: The Investor
