1.4 GW Vietnamese Offshore Wind Project Nears Financial Close

Mainstream Renewable Power has received a Decision on Investment and an Investment Registration Certification (IRC) from the provincial government of Soc Trang for the first 200 MW of the Phu Cuong Soc Trang offshore wind project in Vietnam.

The wind farm, once fully complete, will have a capacity of up to 1.4 GW and will generate enough electricity to power over 1.6 million homes, as well as mitigating 1.8 million tonnes of carbon dioxide emissions each year, Mainstream said.

The project is anticipated to reach financial close in 2022, enabling first power to commence as early as 2023.

The wind farm is a joint venture between Mainstream and its Vietnamese partner the Phu Cuong Group, with Mainstream owning 70 per cent of the asset and the Phu Cuong Group owning the remaining 30 per cent.

”The Phu Cuong Soc Trang offshore wind farm is an essential investment in Vietnam’s clean energy infrastructure and will make a major contribution towards the country’s carbon neutrality roadmap. This wind farm, which will be the largest in the region, will play a key role in accelerating the development of Vietnam’s economy by promoting the growth of industrialization. The government’s supportive policies to promote renewable energy are important for promoting foreign direct investment in co-operation with Vietnamese partners,” Nguyen Viet Cuong, Chairman of the Phu Cuong Group, said.

The project follows a multi-stage development approach, with 200 MW of capacity set to be delivered in phase 1 and the remaining 1,200 MW to be developed thereafter. The wind farm is located off the southern coast of Vietnam and will be the largest offshore wind farm in South-East Asia, according to Mainstream.

The project has already completed its wind measurement campaign and other site studies, and the procurement process to secure a wind turbine supplier and balance of plant contractor is well advanced, according to Mainstream.

Moving forward, Mainstream will work closely with EVN, Vietnam’s national electricity company, to finalise the grid connection agreement, as well as the project’s Power Purchase Agreement (PPA).

Mainstream has been present in Vietnam since 2016 where it is developing 2.3 GW of solar and offshore wind assets.

”We commend the government for the progress made in encouraging the development of renewable energy in Vietnam to date. The Phu Cuong Soc Trang project promises to be a catalyst for the development of a true offshore wind industry of a scale that will promote the achievement of net zero by 2050,” Cameron Smith, Mainstream’s General Manager for APAC, said.