Vietnam sets offshore wind rates, eyes first project launch by end of 2025

Vietnam announces offshore wind tariffs, paving way for faster industry growth. (Photo: iStock)

Vietnam's Ministry of Industry and Trade (MOIT) has unveiled a pricing framework for offshore wind power, setting regional ceiling tariffs ranging from VND 3,078.9 to VND 3,975.1 per kWh (approx. USD 0.12–0.15). A senior MOIT official further disclosed that Vietnam’s first offshore wind project could break ground by the end of this year.

The Copenhagen Infrastructure Partners (CIP), a key offshore wind investor in Vietnam, stressed that establishing a clear and consistent legal framework remains the most urgent step to accelerate sector growth.

MOIT approves regional price bands

MOIT recently approved a proposal by Vietnam Electricity (EVN) for a 2025 price structure. The offshore wind power pricing ceilings vary by region, with the northern region set at the highest at VND 3,975.1/kWh, followed by the southern region at VND 3,868.5/kWh, and the south-central region at VND 3,078.9/kWh.

EVN noted that the pricing reflects estimated investment costs of roughly VND 93.6 million per installed kilowatt (about USD 3,570), with adjustments based on regional capacity factors (CF), a measure of how effectively a power plant generates relative to its maximum output.

Vietnam's CF values vary by region: North: 38.4%, South-Central: 49.6%, South: 39.5%.

Following the Vietnamese government's May resolution to expand private sector involvement in key national infrastructure projects, Deputy Minister Nguyen Hoang Long revealed at a June 28 meeting with UK business representatives that multiple private offshore wind proposals have since been submitted.

He added that the first offshore wind project could begin construction by year-end, though no specific investors or project details were disclosed.

Regulatory clarity seen as cornerstone for offshore wind

Despite MOIT’s initial proposal to postpone offshore wind development due to high early-stage costs, the sector has regained momentum. The revised Power Development Plan VIII (PDP8) now calls for 6,000 MW of offshore wind capacity within five years, a sharp increase from previous goals.

CIP Vietnam representative Stuart Livesey said that “To meet the adjusted roadmap under PDP 8, Vietnam must adopt a comprehensive approach to offshore wind development. He emphasized four critical pillars for delivering on these targets:

1. Legal certainty: A clear regulatory framework is essential to attract investment, reduce risk, and enable transparent decision-making.
    
2. Infrastructure readiness: Upgrades to transmission systems, ports, and the domestic supply chain are crucial to support large-scale offshore projects.
    
3. Local participation: Workforce training and targeted incentives can enhance local engagement and improve cost-efficiency.
    
4. Financing access: Transparent bidding and international cooperation will be key to unlocking affordable financing.

Source: Vietnam News, The Investor, VnEconomy