Denmark’s CIP eyes large offshore wind power projects in Vietnam

Denmark’s Copenhagen Infrastructure Partners (CIP), a leading global offshore wind farm developer, is looking to cooperate with Vietnamese partners on large-scale (of 500 MW or more) offshore wind power projects.

Niels Holst, a partner of CIP’s New Market Fund I, made the statement at a Thursday meeting to Deputy Minister of Natural Resources and Environment Le Minh Ngan. The projects could employ thousands of skilled workers and help Vietnamese firms join the wind power supply chain, he added.

In reply, Deputy Minister Ngan asked relevant agencies to cooperate with the Danish side to check details of the cooperation. As offshore wind power is a relatively new sector in Vietnam, Ngan called on the Danish side to help with wind surveys and building an accurate wind database, planning of maritime area, selection of offshore wind power developers, and management of investors.

For his part, Danish Ambassador to Vietnam Nicolai Prytz said his country was willing to cooperate with Vietnam in exploiting offshore wind power in order to help Vietnam fulfill its net-zero emission target made at COP 26. The Vietnamese government should issue a clear framework for the sector, the diplomat added.

On the same day, the Danish ambassador and CIP representatives met with Deputy Prime Minister Tran Hong Ha to discuss offshore wind power cooperation. Receiving CIP’s proposal, the Deputy PM asked the Ministry of Industry and Trade to collaborate with CIP in picking Vietnamese partners for cooperation.

The initial focus should be on cooperation mechanisms, governance, mechanisms for mobilizing resources from the public and private sectors, support policies, power grids, and the establishment of an industrial ecosystem powered by renewable energy.

The two meetings took place one day after Vietnam and Denmark established a Green Strategic Partnership during an online meeting between Prime Minister Pham Minh Chinh and his Danish counterpart Mette Frederiksen. Both sides agreed to coordinate closely to promptly formulate a plan to implement the partnership, strengthen cooperation in policy making, share experience, and facilitate investments in each other countries in green fields.

The Green Strategic Partnership focuses on (i) green dialogue; (ii) climate, environment and energy; (iii) trade and business collaboration; (iv) maritime; (v) urban development, sustainable and liveable cities; (vi) food and agriculture and aquaculture; (vii) health and life science; (viii) national statistics in support of sustainable development goals and green transition; (ix) promotion of green ambitions across sectors; (x) multilateral cooperation.

In late October, the Ministry of Natural Resources and Environment hosted a consultation workshop on the Just Energy Transition Partnership (JETP). Speaking at the event, Stuart Livesey, Vietnam country director for Copenhagen Offshore Partners (COP), the sister company of CIP, stressed there remain two challenges for offshore wind power in Vietnam, namely the rules on site survey and the power grid. Besides, the direct power purchase agreement (DPPA) mechanism should be finalized soon to attract more investments, he added.