Norwegian group cancels offshore wind power investment plan in Vietnam

Norwegian state-owned energy group Equinor has confirmed the cancellation of its planned investment in offshore wind power in Vietnam, according to Reuters.

"We have decided to cease business development in Vietnam and close our Hanoi office," said Equinor spokesperson Magnus Frantzen Eidsvold.

Prior to this decision, over the past few years, the Norwegian energy group had withdrawn from more than a dozen countries where it had oil and gas operations to focus on renewable energy and low-carbon systems. However, this is the first time Equinor has closed an office responsible for international offshore wind power development. The representative office in Hanoi opened in May 2022.

Equinor decided to exit Vietnam after a thorough review of its renewable energy asset portfolio. "The offshore wind sector has been facing significant headwinds recently, and we need to be disciplined in our approach," he told. Reuters .

Equinor is one of Norway's largest energy companies, focusing on three areas: oil and gas, LNG and hydrogen, and renewable energy. Within this, Equinor invests in offshore wind power projects in Europe and the US. In the UK, they have the Dogger Bank project, the world's largest offshore wind farm.

The company is listed on the Oslo and New York stock exchanges, with a market capitalization exceeding $73 billion. The Norwegian energy giant had revenue of $25.46 billion in the quarter ending June 30, up more than 11% year-on-year. However, for the past 12 months, revenue has decreased by over 18%, to approximately $105.3 billion.

According to the World Bank (WB), Vietnam's offshore wind power potential is approximately 600 GW, and this energy source is expected to supply 12% of the country's total electricity production by 2035.

Equinor also assessed Vietnam as having "one of the best wind resources in Asia." However, two senior sources, speaking on condition of anonymity, told Reuters In the best-case scenario, Vietnam is projected to install only about 1 GW of offshore wind power capacity by the end of this decade, due to regulatory hurdles.

According to the World Bank's analysis team, Vietnam has attracted international attention with its renewable energy plans, but policy delays have caused some potential investors to reconsider their plans. Last year, Orsted Group (Denmark) halted its plans to invest in this sector in Vietnam.

According to the National Power Development Plan VIII, Vietnam aims to develop 6,000 MW of offshore wind power by 2030 and increase this to 70,000-91,500 MW by 2050. However, no projects have yet received approval for their investment policies or assigned investors, and the legal framework for developing this power source remains unclear.

At a meeting with Deputy Prime Minister Tran Hong Ha on August 23, the Ministry of Industry and Trade proposed assigning the task to the Vietnam Oil and Gas Group (PVN). pilot They are developing an offshore wind power project. They also stated that they are finalizing policies to facilitate the participation of domestic and foreign investors in this sector. However, Deputy Prime Minister Tran Hong Ha requested that the pilot project for offshore wind power development clearly outline the project, model, and implementation methods... so that management agencies have a basis to address issues related to the legal framework, surveys, and planning.

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