On March 12, during a meeting and working session with Prime Minister Pham Minh Chinh, Mr. Nate Franklin - Chairman of Pacifico Energy (PE) Group of the US - pledged to continue expanding PE's investment in Vietnam's energy industry, including a multi-billion dollar investment plan in offshore wind power in Binh Thuan, bringing new advanced solutions to ensure energy security.
Offshore wind power has become one of the important renewable energy sources in the world, especially in countries with favorable wind conditions. The following is the experience of offshore wind power development of some leading countries in this field.
Denmark
Denmark is a pioneer in offshore wind power , with the launch of the Vindeby project - the world's first offshore wind farm in 1991.
A scientific and transparent bidding mechanism is a highlight in Denmark's offshore wind power investment policy. Accordingly, the Danish Government organizes competitive bidding, ensuring the selection of investors with the best price while still ensuring project quality.
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| Vindeby (Denmark) was the world's first offshore wind farm built in 1991. Photo: Project Management Institute. |
The effectiveness of financial support and pricing mechanisms has created a favorable environment for the implementation of offshore wind projects in Denmark. Previously, Denmark applied the Feed-in Tariff (FIT) mechanism to support electricity prices for wind power projects. Currently, the country uses the Contracts for Difference (CfD) mechanism to ensure stable profits for investors. The fast environmental approval and licensing system helps reduce barriers for projects.
With a clear marine spatial plan, Denmark builds offshore wind power facilities in specific areas, ensuring that conflicts with other industries such as fishing and shipping are avoided. The smart grid system built by Denmark helps connect with neighboring countries such as Germany, Norway, and Sweden to optimize renewable energy sources. The country is implementing the Energy Islands project, in which artificial islands in the North Sea will become a center for collecting and distributing offshore wind power.
Denmark has also developed its domestic industry and supply chain in tandem with the development of offshore wind power. The Nordic country invests heavily in research and development (R&D), which helps reduce costs and increase the efficiency of wind turbines. The wind power supply chain is well developed, from manufacturing turbines, blades, foundations to installation and maintenance. On the international map, Denmark is known as the home of Vestas and Ørsted, two world leaders in the wind power sector.
By 2023, Denmark's offshore wind capacity will reach around 2.3 GW, with plans to expand to 12 GW by 2030. The country aims to become a zero-carbon economy by 2050, with wind power playing a core role.
United Kingdom
The UK held the position of the country with the largest offshore wind power capacity in the world for many years before China overtook it. With a well-planned development strategy, the UK is not only one of the leading countries in offshore wind power but also plays an important role in promoting the global renewable energy market.
The UK’s standout offshore wind policy is the Contracts for Difference (CfD) scheme. This scheme ensures stable electricity prices for investors, protecting them from market price fluctuations. CfD auctions have helped to significantly reduce the cost of offshore wind, from £140/MWh in 2015 to below £40/MWh in 2022.
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| The UK's Dogger Bank wind farm is expected to become the world's largest offshore wind farm when it is completed in 2026, with a capacity of 3.6 GW. Photo: Doggerbank.com. |
The UK government has the Crown Estate to plan and grant sea rights for wind power projects. Its efficient operation helps shorten the time it takes to grant permits, while ensuring harmony with maritime activities, fishing and environmental protection.
The UK's electricity transmission system is well-invested, with a centrally connected offshore grid system that optimizes the transmission of electricity from offshore wind farms to the mainland.
The North Sea Wind Power Hub project is being studied to connect the UK's power grid with other European countries.
The UK government requires high levels of local content for offshore wind projects. Hull has become a hub for wind turbine blade manufacturing for Siemens Gamesa, while ports such as Teesside and Able Marine handle installation and commissioning.
The UK is currently at the forefront of floating wind technology, enabling offshore wind farms to be developed in deep water. The ScotWind project, with over 20 GW of capacity, will make the UK a global hub for floating wind.
By 2023, the UK will have more than 14 GW of offshore wind capacity, accounting for around 30% of the global offshore wind capacity. The country aims to reach 50 GW by 2030, including at least 5 GW from floating wind.
China
As the country with the fastest growth in offshore wind power in recent years, China has surpassed the UK to become the country with the largest offshore wind power capacity in the world.
The preferential price mechanism is a unique feature of China's offshore wind power development policy. The country of one billion people applies an attractive Feed-in Tariff (FIT) mechanism to encourage investment in offshore wind power. The FIT price is gradually reduced in stages, helping to promote enterprises to optimize costs and technology. In addition, state-owned banks in China provide green credit packages with preferential interest rates to support enterprises in the wind power sector. The government also encourages public-private partnerships (PPP) to attract investment capital.
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| China is the country with the largest offshore wind power capacity in the world. Photo: Dialogue Earth. |
The implementation of clear marine spatial planning helps China optimize the location of wind farms without affecting maritime traffic and fisheries. Investments have been made in the construction of offshore high-voltage transmission grids, helping to integrate wind power into the national power system. Energy storage systems have also been developed to ensure stable power supply even when the wind is weak. Ports have been upgraded to serve the installation and maintenance of offshore wind farms.
China has leading companies in the wind power sector such as Goldwind, MingYang, Envision and Shanghai Electric, helping to reduce its dependence on foreign technology. It has also boosted domestic production of foundations, cables and mounting systems, helping to reduce costs and create jobs. Chinese companies have begun exporting wind turbines and wind power technology to Southeast Asia, Europe and Latin America. China is testing floating wind power, with the aim of deploying it in areas with water depths of more than 50 meters.
By 2023, China's total offshore wind capacity will exceed 30 GW, accounting for nearly 50% of the global capacity. By 2030, China is expected to reach 100 GW of offshore wind capacity to meet the renewable energy needs of a giant economy.
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