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Friendlier legal framework needed for offshore wind power development

Vietnam is believed to possess great potential for developing offshore wind power, but a friendlier legal framework is still needed to attract more foreign investment to this type of renewable energy, an insider has said.

In a recent interview with the Vietnam News Agency, Sean Huang, Development Manager of Copenhagen Offshore Partners (COP) - which is engaging in the La Gan offshore wind power project in Vietnam, spoke highly of the Vietnamese Party and Government’s vision and determination to boost energy transition.

He noted that offshore wind power has proved to be able to help Vietnam reduce dependence on imported fossil fuel, work to achieve net zero emissions, and switch to clean and sustainable energy.

This type of energy also holds great potential for helping to attract foreign direct investment and fuel local supply chains, he said, adding that the Vietnamese Government, resolved to secure net zero emissions in the next few decades, is moving in the right direction.

COP has seen closer cooperation between the Government and developers to share international experience in making regulations, mobilise capital, and transfer technology, according to him.

The official also pointed out certain challenges and risks to offshore wind power development in Vietnam, including those related to the legal framework, power purchase agreements, grid construction, and supply chains. Besides, technical differences may lead to a considerable gap in expenses and investment among land, inshore, and offshore wind power projects.

The country still lacks a particular legal framework for offshore wind power, and many agencies still base themselves on typical land or inshore wind power projects to consider offshore ones. As a result, unclear procedures have hampered offshore wind power developers from carrying out their projects on schedule, the official went on.

He recommended the Government create a friendlier investment climate and legal framework to encourage experienced foreign developers to make investment.

Such a favourable investment climate and legal framework will enable them to mobilise capital in the international market and promote the growth of domestic supply chains, thereby creating a prerequisite for the success of offshore wind power in the country./.