Vietnam to buy 80% of offshore wind power plants’ output for 15 years

Vietnam will purchase at least 80% of offshore wind power plants’ output for 15 years, unless buyers and sellers have other agreements, according to a new government decree.

Under Decree 58/2025 on renewable and new energy, effective from March 3, 2025, the purchase commitment is not applied to cases of electricity generation not meeting the committed minimum level due to load demand or technical conditions of the power grid or issues of the projects.

The duration of 15 years is higher than the draft term of 12 years.

The decree stipulates other incentives for offshore wind power developers, including exemptions of maritime area use fees for no more than three years from the beginning of construction and 50% reduction for the next 12 years, and exemption of land use fees for no more than three years from the beginning of construction.

To gain the incentives, projects must receive in-principle approval before January 1, 2031 and those powering the national grid must belong to the 6,000 MW approved under the power development plan (PDP). Other projects will gain incentives in line with the legal framework at the time of decision.

Vietnam currently has no offshore wind power projects. The country targets to add 6,000 MW of offshore wind power to its masterplan by 2030 and put the related projects into operation in 2030-2035, Deputy Minister of Industry and Trade Nguyen Hoang Long said last week. The target is 113,503-139,097 MW of offshore wind power by 2050, he added.

German renewable energy developer Pure New Energy's (PNE) $4.6 billion Hon Trau wind power project in Vietnam’s south-central province of Binh Dinh has recently been re-classified as a nearshore wind power project.