The Government’s approval of the PDP 8 on May 15, 2023, after more than two years of waiting, has contributed to strengthening investors’ confidence in the Vietnamese market. Vietnam is one of the countries in the Asia-Pacific region with the best potential for large-scale GHG development. A clear implementation plan, along with a transparent investor selection mechanism and power purchase agreements that comply with international investment standards, will make the target of 6GW of GHG by 2030 completely feasible.
Mr. Niels Holst, Member of the Group's Board of Directors
Mr. Niels Holst, Member of the Board of Directors and CEO of Copenhagen Infrastructure Partners (CIP) New Markets Fund, shared: " We are very pleased and appreciate the Vietnamese Government's official approval of the 8th PDP with ambitious targets on renewable energy, especially new energy sources such as offshore wind power, hydrogen, ammonia, etc. This is an important milestone in the green energy transition and the implementation of Vietnam's commitments at COP 26. CIP is committed to supporting Vietnam in developing this new industry."
CIP has entered the offshore wind market in Vietnam since 2019 and is currently developing the 3.5GW La Gan offshore wind project in Binh Thuan province. In addition, the group is also in the early stages of researching and developing about 4GW of offshore wind in some provinces in the Northern region and more than 6GW of offshore wind in the Southern region.
Veja Mate offshore wind power project invested by CIP in Germany
Currently, CIP has a strong presence in Vietnam through the establishment of 3 offices to implement GHG development activities, share experiences and work with local and central stakeholders. With a long-term vision and available experience, CIP is ready in both technology and financial resources to be able to implement large-scale GHG projects, contributing to accompanying the Vietnamese Government in the successful implementation of the 8th National Action Plan.
A study was conducted for CIP’s 3.5GW La Gan project off the coast of Binh Thuan province in February 2021. The results showed that, of the total investment capital of 10.5 billion USD over the project’s life, up to 9 billion USD will be contributed to the Vietnamese economy. The project is expected to create more than 130,000 full-time equivalent jobs, including 45,880 jobs in Vietnam. The total domestic value of the project is estimated at 44.1%. When fully built, the 3.5GW wind farm can provide electricity to about 7 million households per year.
Mr. Robert Helms, Member of the Board of Directors of CIP Group
Mr. Robert Helms, Member of the Board of Directors of CIP Group, said: "After 3 years of development in Vietnam, we are very pleased to see significant positive developments. In the next step towards the goal of implementing 6GW offshore wind projects by 2030, we hope to be able to step up our activities and implement contracts with local suppliers such as CPIM, Hymetco, Energy Institute and many others, based on the memorandums of understanding with Pacific, PTSC MC, ... as soon as we have more specific information on the survey exclusivity regulation - one of the policies contributing to helping Vietnam achieve the target of 6GW offshore wind by 2030".
For GHG to deliver long-term benefits such as cost reduction, reduced fossil fuel use and climate change mitigation, investment in establishing the industry from the early stages is needed.
Experience from other markets has shown that costs will fall significantly over time as the government provides support for pilot projects and the establishment of the industry. In the UK, costs have fallen by more than 70% since the establishment of the wind industry began, making GHG the cheapest form of energy to produce. In Taiwan, costs have fallen by around 60% in a relatively short period of time as technology has improved more rapidly.
The target of net zero emissions by 2050 and the orientations in the 8th PDP will establish a solid foundation to ensure energy security and develop renewable energy sources. The GHG industry, which is a new industry using high technology and will contribute significantly to Vietnam's green energy transition, deserves to be considered one of the key industries that need to be encouraged for investment and have appropriate incentive and support mechanisms.
Copenhagen Infrastructure Partners (CIP) , founded in 2012, is currently one of the world's top three offshore wind developers (ODW) and the world's largest green energy fund manager headquartered in Denmark.
With its origins in Pension Denmark, Denmark’s largest employee pension fund, CIP Group has raised eight funds with a total of $19 billion under management , and currently manages over 50GW of renewable energy projects in markets around the world , including the United States, United Kingdom, Germany, Australia, South Korea, Japan, Taiwan, the Philippines, and Vietnam. CIP develops and delivers all forms of renewable energy projects, including solar, onshore wind, offshore wind, hydrogen, battery storage, biomass, co-firing, and power islands, and also invests in green high-voltage transmission systems.
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