In regards to Vietnam’s Power Development Plan VIII (“PDP8”), which has earmarked an ambitious target of 6GW of offshore wind (“OSW”) by 2030, a noteworthy shift has occurred in the development planning phase. Unlike previous power development strategies in Vietnam that have enumerated definite projects to be enacted, PDP8 centralises on flagged and major ventures on a national level. This includes hydropower initiatives, and thermal projects (inclusive of LNG to power) but fails to convey any reference to wind projects.
This departure in approach brings to light the need for the OSW projects to have been identified, with dedicated investors on board, to meet the scheduled target in the PDP8. This becomes even more critical when considering that no specific wind projects have been outlined within the plan.
While the reasons behind this strategic shift are not clear, it does raise numerous questions around the future of offshore wind projects in Vietnam. The question remains: will this approach enable Vietnam to meet its ambitious target for offshore wind capacity by 2030? Or will the lack of specific project outlines instead result in a delay in achieving these benchmarks?
For further insights into this issue, refer to the original report by Shearman & Sterling LLP on JDSupra.