Mainstream Renewable Power, a subsidiary of Norwegian offshore giant Aker, has received the green light from the Vietnamese province of Soc Trang to work on what could become Southeast Asia’s largest offshore wind project.
Mainstream Renewable Power announced its receipt of a Decision on Investment and an Investment Registration Certification (IRC) from the provincial government of Soc Trang for the first 200 MW of the offshore wind farm.
According to the company, it’s a vital step for the Phu Cuong Soc Trang Offshore Wind Farm, and once complete, the project will have a capacity of up to 1.4 GW and will generate enough electricity to power over 1.6 million homes, as well as mitigating 1.8 million tonnes of carbon dioxide emissions each year.
The project is anticipated to reach a financial close in 2022, enabling the first power to commence as early as 2023.
The wind farm is a joint venture between Mainstream and its Vietnamese partner Phu Cuong Group, with Mainstream owning 70% of the asset and the Phu Cuong Group owning the remaining 30%.
The project follows a multi-stage development approach, with 200 MW of capacity set to be delivered in phase 1 and the remaining 1,200MW to be developed thereafter.
Mainstream said that the announcement represents a significant milestone for the company’s presence in Vietnam. The project has already completed its wind measurement campaign and other site studies, and the procurement process to secure a wind turbine supplier and balance of plant contractors is well advanced.
Moving forward, Mainstream will work closely with EVN, Vietnam’s national electricity company, to finalize the grid connection agreement, as well as the project’s Power Purchase Agreement (PPA).
Mainstream has been present in Vietnam since 2016 where it is developing 2.3 GW of solar and offshore wind assets.
Cameron Smith, Mainstream’s General Manager for APAC, said: “We are excited to be a part of Vietnam’s energy transition with the Phu Cuong Soc Trang project, which is being developed to the highest international standards, drawing on Mainstream’s extensive experience. Being leaders in renewable development in many countries, we understand the importance of community engagement, and we are pleased to have had such positive support from the Soc Trang community.
“We commend the government for the progress made in encouraging the development of renewable energy in Vietnam to date. The Phu Cuong Soc Trang project promises to be a catalyst for the development of a true offshore wind industry of a scale that will promote the achievement of net-zero by 2050.”
Mr. Nguyen Viet Cuong, Chairman of the Phu Cuong Group, said: “The Phu Cuong Soc Trang offshore wind farm is an essential investment in Vietnam’s clean energy infrastructure and will make a major contribution towards the country’s carbon neutrality roadmap. This wind farm, which will be the largest in the region, will play a key role in accelerating the development of Vietnam’s economy by promoting the growth of industrialization.
“The government’s supportive policies to promote renewable energy are important for promoting foreign direct investment in cooperation with Vietnamese partners.”