Vietnam: 200MW offshore wind energy project secures government backing

In Vietnam, the provincial government of Soc Trang will be providing financial aid to Mainstream Renewable Power and the Phu Cuong Group for the construction of a 200MW offshore wind farm.

The entire project is expected to have a total capacity of 1.4GW, enough energy to power 1.6 million households and will avoid the emissions of 1.8 million tonnes of carbon per year, according to Mainstream.

Phase 1 of the project will include the installation of the 200MW generator and an additional 1,200MW thereafter.

Wind measurements and site studies have been completed, and the procurement process to secure a wind turbine supplier and balance of plant contractor are at an advanced stage. The project is anticipated to reach financial close in 2022, enabling first power to commence as early as 2023.

The project will be connected to state utility EVN’s grid network through a power purchase agreement. This will enable secure energy supply and the decarbonisation of the Vietnamese grid system. Moreover, increasing the amount of renewables connected to the grid will ensure consumers are provided with affordable, clean electricity.

Mainstream currently has a 2.3GW solar and offshore wind portfolio in Vietnam and will own a 70% stake in the project. Investment corporation, Phu Cuong Group, will own a 30% share.

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.”

Smith, added: “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, reiterated: “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 co-operation with Vietnamese partners.”