Danish investor to develop large Vietnam offshore wind project

2020-7-28 w.theasset

Southeast Asian country has technical potential for 160GW of offshore wind power ighlighting the big potential of Vietnam’s renewable energy sector, Copenhagen Infrastructure Partners (CIP), a leading global investor in offshore wind, has agreed to develop a 3.5GW offshore wind project off the coast of Binh Thuan province. In a memorandum of understanding signed on July 22 with the Binh Thuan People’s Committee, CIP, on behalf of its fund CI New Markets Fund I, will develop the La Gan project together with Vietnamese companies Asiapetro and Novasia Energy. The offshore wind project is one of the first large-scale offshore wind projects in Vietnam, which could raise the Southeast Asian country’s profile in renewable energy in the region and the world. The project has an estimated capital expenditure of up to US$10 billion, and is expected to create significant income and jobs for both Binh Thuan and Vietnam. A successful cooperation among CIP, Asiapetro, Novasia and Binh Thuan in this project could pave the way for more foreign investment in offshore wind projects in Vietnam. The La Gan project will provide Vietnam with access to the most advanced wind power technology and support the country’s transition to a power system with a high ratio of renewable energy integration and low carbon emission. CIP has raised over US$10 billion from several renewable-energy-focussed funds, including the most recent CI IV, which is set to become the world’s largest renewable energy fund. The company’s CI New Markets Fund I is targeted at fast-growing major new economies, with a strong focus on Vietnam currently. “With this project, we commit to cooperate with our local partners to make this project a showcase for successful technology transfer and utilization of local competencies,” says CIP partner Michael Hannibal. Findings from the cooperation between the Danish Energy Agency and the Vietnamese Electricity and Renewable Energy Authority show that Vietnam has a technical potential for 160GW of offshore wind, which puts the country at the forefront of prospective offshore wind markets. In comparison, there was about 29GW of offshore wind installed globally by the end of 2019. Vietnam and Denmark entered into a long-term cooperation agreement in 2013 for the purpose of strengthening Vietnam’s transition to a low-carbon economy. It is financed by the Danish Climate Envelope and administered by the Danish Energy Agency. The first phase of this partnership focussed on supporting Vietnam in the area of energy efficiency. The second phase, from 2017 to 2020, seeks to build capacity for Vietnamese partner agencies in long-term energy planning, operation of the power system with a high ratio of renewable energy integration, and low carbon transition in energy efficiency for the industrial sector. Established in 2012, CIP has seven funds with more than US$10 billion in commitment under management. The funds have made more than 20 investments so far in large-scale energy infrastructure assets totalling almost 8GW in capacity across the US, the UK, Germany, Spain and Taiwan. In addition, more than 15 greenfield energy infrastructure projects are in the process of reaching final investment decision and are likely to start construction in the next two to three years.