Pacifico Energy eyes offshore wind power development in Vietnam

Vietnam is one of the three most important markets for Pacifico Energy, and the group is interested in developing offshore wind power projects in the country.

Chairman of Pacifico Energy Group Nate Franklin said so in a meeting with Vietnamese Prime Minister Pham Minh Chinh on Wednesday (local time) within the framework of his seven-day visit to the U.S.

Franklin said he highly appreciated the establishment of a comprehensive strategic partnership between Vietnam and the U.S. and the prime minister's trip to the U.S.

Franklin commented that Vietnam, along with Japan and South Korea, are the three most important markets for the group. He also said that Pacifico Energy wants to continue investing in renewable energy and shared ideas for developing offshore wind power in Vietnam.

The prime minister affirmed that Vietnam always welcomes, encourages, and creates favorable conditions for foreign investors, including investment projects in the field of renewable energy.

"The cooperation is based on the spirit of "harmonious benefits; shared risks" between the government, businesses, and people; and comprehensive calculations of five factors, namely power source, power load, distribution, power use, and suitable electricity prices," he noted.

Pacifico Energy is a privately held, utility-scale renewable power company headquartered in the U.S., specializing in the development of solar photovoltaic and wind projects, with offices in Japan, South Korea, Vietnam, and the U.S. The group has over 1.5 GW of operational projects and an additional 7 GW of pipeline in development.

In Vietnam, Pacifico Energy is currently the largest renewable energy investor from the U.S., with the 40 MW Mui Ne solar power project in Binh Thuan province and the 30 MW Sunpro wind power project in Ben Tre province.

Previously, Deputy Prime Minister Tran Hong Ha asked the Ministry of Industry and Trade to redo its deployment proposal for the national power development plan VIII (PDP VIII) towards making it more comprehensive. He also asked the ministry to build a pilot mechanism to allow state utility Vietnam Electricity (EVN) and qualified domestic businesses conduct offshore wind power projects.

The PDP VIII mentions that Vietnam has the technical potential of generating 600,000 MW from offshore wind power. The target is to develop 6,000 MW by 2030 to serve the domestic market and move towards 70,000-91,500 MW by 2050.

Vietnam is in a position to attract offshore wind power investments, but failure to provide timely support policies can turn investors and suppliers away, the Global Wind Energy Council (GWEC) said in its newly-released “Global Offshore Wind Report 2023”. The GWEC emphasizes that major wind energy developers have been facing a profitability crunch in recent years, causing them to retrench and withdraw from smaller or slower-moving markets.

Vietnam and the U.S. agreed to raise bilateral ties to a comprehensive strategic partnership, the highest in Vietnam’s diplomatic hierarchy, during President Joe Biden’s visit to Hanoi this month. The upgrade takes Vietnam-U.S. relations on a par with Vietnam's relationships with China, Russia, India and South Korea.