Vietnam’s wind power industry has emerged as a key component of the country’s renewable energy strategy, driven by favourable natural conditions and government incentives. With over 3,000 kilometres of coastline and high wind speeds, Vietnam has significant potential for both onshore and offshore wind energy development. In recent years, the government has introduced policies such as attractive feed-in tariffs and streamlined licensing procedures to encourage investment in wind power projects. As a result, the industry has seen rapid growth, with several large-scale wind farms coming online and many more in the pipeline, positioning Vietnam as one of the leading wind power markets in Southeast Asia.
Despite this progress, the industry faces several challenges, including regulatory uncertainties, limited grid infrastructure, and difficulties in financing. The abrupt changes to feed-in tariffs and delays in implementing a competitive bidding mechanism have created uncertainty for investors and developers. Additionally, the transmission grid in certain regions is not equipped to handle the increasing capacity from wind projects, leading to grid congestion and power curtailment issues. Addressing these challenges is crucial for maintaining investor confidence and ensuring the sustainable growth of the wind power sector.
Looking forward, Vietnam’s wind power industry is poised for continued expansion, with strong government support and growing interest from both domestic and international investors. The development of offshore wind projects, in particular, is expected to be a major focus, given the country’s vast offshore potential and the increasing need for cleaner energy sources. Effective policy frameworks, investment in grid infrastructure, and technological advancements will be essential to unlocking the full potential of wind energy and supporting Vietnam’s transition to a more sustainable energy future.
Wind power in Vietnam in numbers
As of July 2024, renewable energy in Vietnam generated 24.02 billion kWh of electricity, accounting for 13.4 percent of the country’s total power output. Wind power alone contributed 7.3 billion kWh, reflecting its growing role in Vietnam’s energy mix, according to data from Vietnam Electricity.
The rapid expansion of wind energy, driven by favourable government policies and investment from both domestic and international developers, has made it a key player in the nation’s efforts to diversify its energy sources and reduce dependence on fossil fuels. Despite challenges such as regulatory uncertainties and grid infrastructure limitations, the continued growth of wind power is essential for meeting Vietnam’s increasing energy demand while supporting its goals for a cleaner and more sustainable energy future.
Wind power policies in Vietnam
Vietnam’s wind power policies are designed to promote the development of wind energy as part of the country’s broader renewable energy strategy. These policies aim to attract investment, facilitate project development, and ensure a stable and supportive regulatory environment for the growth of the wind power sector. Key elements include:
Feed-in Tariffs (FiTs)
The government introduced feed-in tariffs to incentivise investment in wind power projects. Initially set at US$0.085 per kWh for onshore and US$0.098 per kWh for offshore wind projects, these tariffs helped stimulate rapid growth in the industry. However, the FiTs expired in November 2021, leading to a transition towards a competitive bidding mechanism to determine project pricing, which is still being developed.
National Power Development Plan (PDP VIII)
The PDP VIII outlines Vietnam’s long-term energy strategy, with a significant focus on expanding renewable energy, including wind power. The plan aims to increase the installed capacity of wind power to over 11,000 MW by 2030. This includes substantial offshore wind projects, which are expected to play a crucial role in meeting the country’s energy demand and reducing greenhouse gas emissions.
Simplification of Licensing and Approval Processes
To support the rapid development of wind projects, the government has implemented measures to simplify licensing and approval procedures. This includes streamlining environmental impact assessments, land use approvals, and connection agreements with the national grid. These efforts are intended to reduce bureaucratic barriers and accelerate project timelines.
Support for Grid Infrastructure Development
The government recognises the need for improved grid infrastructure to handle the growing capacity of wind and other renewable energy projects. Policies are being developed to enhance the transmission network and integrate more renewable energy into the national grid. This includes investments in grid upgrades and the development of energy storage solutions to manage intermittency and ensure stable power supply.
These policies reflect Vietnam’s commitment to becoming a regional leader in wind energy, leveraging its natural resources to support sustainable economic development and energy security. Continued refinement of the regulatory framework and investment in infrastructure will be essential to unlocking the full potential of wind power in the country.
Domestic wind power companies in Vietnam
These domestic companies are driving the growth of the wind power sector in Vietnam, leveraging local expertise and resources to develop large-scale projects that contribute to the country’s energy transition and sustainability goals.
Trung Nam Group
Trung Nam Group is one of the leading renewable energy companies in Vietnam, actively involved in the development of wind power projects. The company has completed several major wind farms, including the Trung Nam Wind Farm in Ninh Thuan province, which has a capacity of 151.95 MW. Trung Nam Group is known for its integrated approach, handling both the development and construction of its renewable energy projects.
BIM Group
BIM Group, a prominent Vietnamese conglomerate, has expanded into the renewable energy sector with significant investments in wind power. The company is involved in developing the BIM Wind project in Ninh Thuan province, with a total capacity of 88 MW. BIM Group aims to contribute to Vietnam’s energy diversification by focusing on sustainable and clean energy projects.
T&T Group
T&T Group is a major Vietnamese corporation with interests in multiple sectors, including renewable energy. The company is actively developing several wind power projects, particularly in the central and southern regions of Vietnam. T&T Group’s involvement in the wind power sector is part of its broader strategy to invest in sustainable energy solutions and support the country’s energy transition.
REE Corporation
REE Corporation, known primarily for its involvement in the utilities and real estate sectors, has diversified into renewable energy, including wind power. The company owns and operates several wind farms and is actively exploring new project opportunities to expand its renewable energy portfolio.
Gelex Group
Gelex Group is another key player in Vietnam’s wind power industry, focusing on the development and operation of wind power projects. The company’s wind farms are primarily located in the central and southern regions, contributing to the local electricity supply and supporting Vietnam’s renewable energy targets.
Foreign wind power companies in Vietnam
These foreign companies could bring substantial investment, technology, and expertise to Vietnam’s wind power industry, supporting its development and integration into the national energy mix.
Siemens Gamesa (Germany/Spain)
Siemens Gamesa, a major global wind turbine manufacturer and project developer, has a strong presence in Vietnam. The company supplies wind turbines for several onshore and offshore projects and provides maintenance and technical support. Siemens Gamesa’s advanced technology and expertise play a significant role in enhancing the efficiency and performance of Vietnam’s wind power projects.
Mainstream Renewable Power (Ireland)
Mainstream Renewable Power, an Irish renewable energy company, is involved in developing large-scale wind power projects in Vietnam. It has partnered with local companies to co-develop several onshore and offshore wind farms, including the Phu Cuong Soc Trang offshore wind project, one of the largest planned offshore wind developments in Southeast Asia.
Copenhagen Infrastructure Partners (CIP) (Denmark)
Copenhagen Infrastructure Partners (CIP) is heavily invested in Vietnam’s offshore wind sector. The firm is developing the La Gan offshore wind project in Binh Thuan province, in collaboration with local partners. With a planned capacity of up to 3.5 GW, this project represents one of the largest foreign investments in Vietnam’s wind power industry.
The Blue Circle (Singapore)
The Blue Circle, a renewable energy developer based in Singapore, focuses on wind power projects across Southeast Asia. In Vietnam, the company has developed several wind farms, including the Dam Nai wind farm in Ninh Thuan province. The Blue Circle’s projects contribute significantly to the growth of the onshore wind sector in Vietnam.
Wind power projects currently underway in Vietnam
Several notable wind power projects are currently underway in Vietnam, reflecting the country’s commitment to expanding its renewable energy capacity. Key projects include:
Phu Cuong Soc Trang Offshore Wind Farm
This is one of the largest offshore wind projects in Vietnam, being developed by Mainstream Renewable Power in collaboration with local partners. Located off the coast of Soc Trang province, the project has a planned capacity of up to 1,400 MW. It will be developed in multiple phases, with the first phase expected to provide 400 MW of capacity. The project is designed to support Vietnam’s renewable energy targets and contribute to the national grid.
La Gan Offshore Wind Farm
The La Gan project, located in Binh Thuan province, is a significant offshore wind development with a planned capacity of up to 3.5 GW. Initially developed by Copenhagen Infrastructure Partners (CIP) in partnership with local stakeholders, it aims to become one of the largest offshore wind farms in Southeast Asia. The project will be developed in multiple phases, focusing on both fixed-bottom and floating wind technology.
Bac Lieu Wind Power Phase III
This onshore wind farm, located in Bac Lieu province, is an expansion of the existing Bac Lieu Wind Power project. The third phase will add 142 MW to the current capacity, bringing the total to nearly 400 MW. This project highlights the strong wind resources of the Mekong Delta region and the ongoing development of onshore wind capacity in Vietnam.
Hoa Binh 5 Wind Power Plant
Developed by Hoa Binh Wind Energy JSC, this onshore wind project is located in Bac Lieu province and will have a capacity of 80 MW. The project is part of a broader series of wind farms in the region, aimed at harnessing the wind resources of the Mekong Delta to support local energy needs and economic development.
Mui Ne Wind Farm
Located in Binh Thuan province, the Mui Ne Wind Farm is being developed by AC Energy, a subsidiary of Ayala Corporation from the Philippines. The project has a planned capacity of 88 MW and is expected to leverage the strong wind conditions in the region. The wind farm is part of a series of renewable energy investments by AC Energy in Vietnam.
These projects represent a significant boost to Vietnam’s wind power capacity and contribute to the country’s efforts to diversify its energy mix and reduce its dependence on traditional fossil fuels.
What’s next?
To fully realise its wind power potential, Vietnam will need to address several challenges, including regulatory uncertainties, grid infrastructure limitations, and financing hurdles. The transition from feed-in tariffs to a competitive bidding mechanism for new projects is expected to create a more stable and transparent investment environment, attracting both domestic and foreign investors.
That said, these regulatory challenges could soon be overcome and the industry may open up to greater development. With this in mind, foreign firms looking to track the development of Vietnam’s solar power industry should make sure to subscribe to the-shiv.