Investing in offshore wind in Southeast Asia is seen as a logical move for many overseas energy firms. S&P Global noted that Vietnam and the Philippines are the most attractive locations due to a number of factors with the most notable being that both countries have vast amounts of breezy coastlines.
However, it is still very much early days for offshore wind in the region. Overseas players are exploring opportunities and while a few projects are in the works, a lot more are needed. For example, the Vietnamese government has set a target to add at least 46 gigawatts (GW) and as much as 87 GW by 2050. Meanwhile, there is hope the Philippines will add 12-17 GW of offshore wind between now and 2040.
Overseas companies are expected to play a significant role in these efforts. Current estimates claim that more than half of all offshore wind facilities in Vietnam are joint ventures with international businesses. In the Philippines, a law permitting 100 percent foreign ownership of renewable energy projects was recently approved. With all this in mind, here’s a look at who is already investing in offshore wind in Southeast Asia.
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Notable firms investing in offshore wind in Southeast Asia
Copenhagen Infrastructure Partners
2 GW in the Philippines
Copenhagen Infrastructure Partners (CIP) has announced it will invest US$5 billion to build three Philippine offshore wind energy projects that could produce up to two GW. It is a landmark deal in that this is the first time a foreign company will own 100 percent of a clean power project. That became possible after the Philippine government approved regulations permitting renewable energy projects to be solely owned by overseas entities. There is hope this will pave the way for other offshore wind developments in the country.
Mainstream Renewable Power
1.9 GW in Vietnam
Ireland-based Mainstream Renewable Power is building offshore wind facilities capable of generating 1.9 GW of renewable energy. Work is already underway on its flagship Phu Cuong Soc Trang project that will be able to produce 1.4 GW once fully operational. Mainstream Renewable Power owns a 70 percent stake in the project with a local partner holding the remaining 30 percent.
The firm is also co-developing an offshore wind project alongside Advanced Information Technologies Corporation (AIT) in Ben Tre province.
Sumitomo
Up to 1 GW in Vietnam
Sumitomo has plans for an offshore wind power generation project in Vietnam, although details of this remain scarce. The Japanese corporation announced it’s building a facility that has a capacity of up to 1 GW with operations slated to start no later than 2030.
Gulf Group
128 MW in Vietnam
Thailand’s Gulf Group owns a 95 percent stake in Mekong Wind Power which operates the Mekong Project in southern Vietnam. The facility produces 128 MW and is already operational.
Shell Overseas Investment
1 GW in the Philippines
While nothing is official just yet, Shell Overseas Investment and local player Alternergy are in advanced talks to co-develop a 1 GW offshore wind farm in the Philippines. The pair have already found a suitable location at the Calavite Passage in Mindoro. Negotiations are ongoing with Shell eyeing a 40 percent stake in the joint venture.
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