Foreign Investors Are Allowed to Hold Up to 95% of the Capital of Offshore Wind Power Projects
In Decree 58/2025/ND-CP guiding the Electricity Law on the development of renewable energy and new energy, the Government has detailed regulations on conditions and incentives for offshore wind power development nationwide.
Accordingly, the Government allows foreign enterprises to invest and bid for offshore wind power projects on the condition that they have developed at least one similar project in Vietnam or abroad. They can directly invest or contribute at least 15% of the total investment, of which equity capital accounts for at least 20% of the contributed capital.
If not contributing capital, the enterprise must have experience in project management, design, or construction. For joint ventures, experience is calculated based on the total of the members. Foreign investors must also commit to using domestic human resources, goods, and services, ensuring competition in price, quality, and progress. Offshore wind power projects in Vietnam must have a domestic enterprise participating in at least 5% of the charter capital. This enterprise must have 50% or more state capital or 100% state capital and have developed at least one operational energy project in Vietnam or abroad.
In addition, offshore wind power projects are entitled to the prescribed mechanisms and policies when meeting the following conditions: being decided or approved by competent authorities for investment policy before 2031; for projects supplying electricity to the national system, they must be within the 6,000 MW approved in the electricity planning. Offshore wind power projects are exempted from sea area use fees for up to 3 years from the date of commencement; reduced by 50% for the next 12 years; exempted from land use fees and land rent for up to 3 years from the date of commencement; after this period, the exemption and reduction shall be implemented in accordance with the provisions of law on investment and land.
Projects selling electricity to the national grid are guaranteed a minimum of 80% of the contracted electricity output within the principal repayment period, but not exceeding 15 years, unless otherwise agreed. This mechanism does not apply if the project fails to meet its commitment due to project errors, load demand or power system conditions. After the incentive period, the project will be subject to the mechanism prescribed by current law. Projects approved for investment by competent authorities after 2030 will enjoy incentives prescribed at the time of approval.
The Ministry of Industry and Trade said that by 2030, this will still be a power source with high construction investment costs. According to the initial plan, the Ministry of Industry and Trade plans to develop about 6,000 MW of offshore wind power by 2030. Therefore, the ministry has adjusted the Power Plan VIII to develop this power source after 2030, reaching about 17,000 MW by 2035, 5 years later than the old plan. Instead, by 2030, Vietnam will develop onshore and nearshore wind power with a total capacity of about 27,791-34,667 MW, an increase of 3,949-5,321 MW compared to the approved plan.
