Vietnam to roll out red carpet for Danish renewable projects

Vietnam is seeking assistance from Denmark regarding tools, expertise, technology, and solutions to improve the implementation of its National Power Development Plan VIII (PDP 8), maximizing the development of renewable energy and facilitating a rapid shift from fossil fuels to renewable sources. Vietnam will embrace companies with the capabilities, technology, and investment experience to engage in specific projects and establish the groundwork for advancing the renewable energy sector. This will contribute to aligning and enhancing governmental policies and investment atmospheres within the energy domain.

This statement was made by Deputy Prime Minister Tran Hong Ha on March 13, during a reception for Deputy Head of Mission at the Embassy of Denmark in Vietnam, Mette Ekeroth, and President and CEO of the Vestas Group, Mr. Anders Runevad.

Emphasizing the comprehensive cooperation and support Denmark has provided to Vietnam over the years, particularly in the environmental and climate sectors, the Deputy Prime Minister said Vietnam is actively implementing the Just Energy Transition Partnership (JETP) in cooperation with G7 countries, Denmark, and international partners. Key areas of focus include the transition from coal to clean energy, the expansion of renewable energy industries and services, upgrades to electricity transmission and distribution networks, the expedited deployment of smart grid systems, and the development of energy storage solutions.

“Denmark can share its experience and provide technological support and financial aid to Vietnam to carry out greenhouse gas emission reduction initiatives, green conversion, and energy transition,” the Deputy Prime Minister said.

The Vietnamese Government is exploring and enacting new frameworks and policies concerning electricity to drive clean energy adoption and market-based electricity trading, including direct power purchases. Deputy Prime Minister Ha anticipates that, in the future, both parties will persist in outlining cooperative priorities in green economic domains, refining legal structures for electricity, energy, the circular economy, and carbon markets, and fostering collaboration between businesses from both nations to undertake and advance renewable energy projects.

In response to specific proposals from Vestas Group leaders, the Deputy Prime Minister underscored that the PDP 8 does not restrict the advancement of renewable energy sources for exports, hydrogen production, and direct electricity trading.

For her part, Ms. Ekeroth emphasized the vital significance of establishing a Green Strategic Partnership between Vietnam and Denmark. This partnership is crucial for elevating the cooperative relationship between the two nations to new levels in sustainable development, climate resilience, green transition, and energy transformation.

Denmark takes pride in its role as a partner providing expert and technical assistance to aid Vietnam in developing an energy outlook report. This support is aimed at facilitating the prompt implementation of PDP 8, in alignment with commitments under the JETP framework.

Recognizing the prioritization of renewable energy development within PDP 8, Mr. Runevad highlighted the Group’s presence in Vietnam and its successful installation of approximately 1,400 MW of wind turbines.

Vestas has expressed its desire to continue contributing to Vietnam’s strategy of becoming a regional hub for the renewable energy industry. This involves collaboration with equipment manufacturing firms and developers of wind power projects.

Earlier, on March 12, the Vestas Development A/S and the Son My Industrial Park Investment Construction and Trading Infrastructure Joint Stock Company (IPICO) signed an MoU that marked an important milestone, confirming the two companies’ commitment to a strategic cooperation in developing wind power projects in the south-central province of Binh Thuan.

According to the Danish Embassy, with Denmark being a frontrunner in the wind power sector with a rich history in original equipment manufacturing, the Embassy is delighted to see enhanced commercial cooperation and exchange of knowledge and experience in support of Vietnam’s green energy transition and commitment to net-zero emissions by 2050.