GWEC Proposes Competitive Procurement Model to Accelerate Development
The Global Wind Energy Council (GWEC) has presented a comprehensive report to Vietnam’s Ministry of Industry and Trade (MOIT), outlining a strategic framework for competitive offshore wind procurement. The report, titled “Vietnam Offshore Wind Competitive Investor Selection Study,” aims to accelerate the nation’s ambitious offshore wind development goals.
Vietnam has set a target of 6 GW of offshore wind capacity by 2030 and a potential 70-91.5 GW by 2050, as outlined in its Power Development Plan (PDP8). This transition to clean energy is crucial for achieving decarbonization goals, enhancing energy security, and meeting the growing demand for sustainable power.
GWEC’s proposed framework emphasizes a two-stage competitive model. The initial stage involves awarding exclusive survey rights to developers, allowing them to define project boundaries within designated areas. This approach fosters a diverse pipeline of projects and encourages long-term investment. The second stage focuses on a price-only competitive selection for power purchase agreements (PPAs) with Vietnam Electricity (EVN).
Mark Hutchinson, Director and Chair of GWEC’s Southeast Asia Task Force, highlighted the importance of a robust competitive procurement process: “A well-structured, competitive investor selection regime would attract significant investor interest and accelerate the development of offshore wind projects in Vietnam.”
By adopting this model, Vietnam can leverage its strategic location, skilled workforce, and existing infrastructure to become a regional hub for offshore wind energy. This transition will not only contribute to a sustainable future but also drive economic growth and create new opportunities for local industries.