On October 22, Binh Dinh authorities met with Germany’s PNE Corporation to promote an offshore wind power project in the province. PNE, with 25 years of experience in wind energy development, plans a 2,000 MW project at an investment of approximately 4.6 billion USD.

Hornung Pedersen, PNE’s Chairman and CEO, highlighted that the corporation has developed offshore wind power projects in 14 countries across four continents. Vietnam represents PNE’s first Asian venture, and Binh Dinh is the initial province targeted for the offshore wind power project, which has been named Hon Trau.

“This offshore wind project in Binh Dinh is a key focus for our corporation. The province meets all the necessary infrastructure conditions, particularly with favorable wind speeds for developing an offshore wind power project,” Mr Pedersen stated.

He also noted challenges in offshore wind power development faced by both Binh Dinh and Vietnam, particularly given the sector’s infancy and the current lack of robust policies.

“We hope the project will soon receive investment approval and be selected as a pilot for offshore wind energy in Vietnam, symbolizing a collaborative effort between the German and Vietnamese governments,” he said.

In 2019, PNE registered for research and assessment toward investment in the Hon Trau offshore wind plant. If operational, the project is projected to supply about 7.1 billion kWh to the national grid annually, contributing to energy security.

Chairman of Binh Dinh People's Committee, Mr. Pham Anh Tuan, and a representative of PNE Corporation (Photo: Binh Dinh).

Mr Pham Anh Tuan, Chairman of the Binh Dinh People’s Committee, acknowledged the initial challenges for project implementation, underscoring the need for both parties’ continued commitment.

With over 3,400 km of coastline, Vietnam has been recognized by international experts as having some of Southeast Asia's most promising wind resources, ranking fifth in Asia and 13th globally. Vietnam’s offshore wind potential is estimated at a substantial 600,000 MW.

However, implementation has encountered numerous obstacles. More than a year after the enactment of Power Plan 8, no offshore wind project has yet received investment approval or an appointed investor. The plan lacks specificity on project numbers, capacity, location, and integration with the national grid.

Several foreign corporations, including Denmark’s Orsted and Norway’s Equinor, have withdrawn from Vietnam, primarily citing unclear policies on energy purchase, investor selection, and electricity sales.