Binh Dinh Province has made significant efforts to attract large investors with financial capability and experience to research and survey for investment in offshore wind power projects.
Investors are ready
Developing offshore wind projects requires significant investment capital. The costs of surveying, building infrastructure, and purchasing modern equipment demand substantial financial resources. Additionally, wind power technology is relatively new to Vietnam, so there is a shortage of skilled and experienced personnel to operate and maintain wind turbines. Moreover, connecting wind power projects to the national grid necessitates substantial investment in transmission infrastructure, presenting a major technical and financial challenge and requiring close collaboration between government agencies and investors.
With over 25 years of experience in onshore and offshore wind power development, PNE (Germany) has registered to study and survey an offshore wind project in Binh Dinh with a projected capacity of 2,000 MW, divided into three phases. Phase I (Hon Trau 1 project), Phase II (Hon Trau 2 project) and Phase III (Hon Trau 3 project) have capacities of 700 MW, 700 MW, and 600 MW, with each phase planned to come online before 2030, 2032, and 2035, respectively. With a total investment of around 4.6 billion USD (over 1.5 billion USD for each phase), the completed project is expected to reach a total capacity of 2,000 MW, supplying approximately 7.1 billion kWh of electricity to the national grid annually.
Per Hornung Pedersen, Chairman and CEO of PNE Group, stated that Binh Dinh has substantial potential for wind power development thanks to its favourable natural conditions. The group has chosen Binh Dinh as the first locality in Asia to develop an offshore wind project.
Resolving obstacles
To provide a foundation for PNE Group to implement its investment project, the Binh Dinh Provincial People's Committee is petitioning the Government to instruct relevant ministries and agencies to review and adjust maritime transportation routes. At the same time, the province is requesting the issuance of guidelines on marine surveys and solutions to resolve overlaps with radar station operation areas to facilitate offshore wind power development.
Additionally, according to the Binh Dinh Provincial Department of Industry and Trade, the offshore wind power development projects registered by PNE Group can only proceed once new regulations on offshore wind power development are issued by competent authorities or a pilot mechanism for offshore wind power development is approved.
Secretary of the Binh Dinh Provincial Party Committee Ho Quoc Dung stated that the province would create an attractive investment environment through preferential policies, tax reductions, and financial support for investors. “We recognise the great potential of PNE. PNE’s offshore wind power project in Binh Dinh aligns with the province’s planning. This is the most important project for the province in the near future to elevate Binh Dinh to a well-developed province nationwide”, Dung said.
Strategic importance of offshore wind power
Provincial leaders view this renewable energy project as significant for Binh Dinh and the country. It contributes to national energy security, leverages natural geographical advantages for marine renewable energy development, and aligns with Vietnam's maritime economic strategy and the global shift toward clean energy. As such, Binh Dinh is overcoming challenges and positioning itself as a hub for wind power development.
During a meeting with Binh Dinh officials, PNE Group Chairman Per Hornung Pedersen highlighted the challenges facing both Binh Dinh and Vietnam, such as the novelty of offshore wind power development and the lack of readiness in policies and mechanisms. He hoped for more proactive support from local authorities to expedite project approval.
Support from the Ministry of Industry and Trade
Minister of Industry and Trade Nguyen Hong Dien expressed his support for the Binh Dinh offshore wind power project. He assured the Ministry would provide an official response and commit to maximum support within its jurisdiction. For matters beyond its authority, the Ministry would collaborate with the province to propose solutions to the central government. To accelerate the project, the Ministry of Industry and Trade plans to recommend that the Government allow a foreign corporation to invest in this offshore wind power project. This approach opens opportunities for international collaboration and facilitates the adoption of advanced technology and expertise from developed countries, ensuring the project’s success.
The offshore wind power project is estimated to contribute approximately 1.6 trillion VND annually to Binh Dinh’s provincial budget. Moreover, it helps actualise the renewable energy development strategy approved for 2030, establishing Binh Dinh as a pioneering province in this sector.
