The south-central coastal province of Binh Dinh, which boasts great potential for wind power development, and the Central Highlands province of Gia Lai were merged in July to form the new Gia Lai.

A wind power project in Gia Lai province, central Vietnam. Photo by The Investor/Nguyen Tri.

According to the provincial Department of Finance, the project covers an offshore area of approximately 32.01 hectares and a land area of about 17.61 hectares, spanning Phu My Dong, Phu My Bac, Phu My Tay, Binh Duong, Ngo May, Cat Tien, and Tuy Phuoc Dong communes, and Quy Nhon Dong ward.

Designed to have a capacity of 750 MW, it is expected to generate 2.8 billion kWh per year. The project is set to be completed and put into operation no later than Q4/2029.

However, the project schedule may be adjusted depending on the Prime Minister’s guidance regarding the National Marine Spatial Planning and the Master Plan for Sustainable Coastal Resource Utilization for 2021-2030, with a vision to 2050.

The project aims to supply clean electricity from renewable energy sources to the national grid, contributing to national energy security, supporting the province’s socio-economic development and reducing transmission losses.

In addition, it will contribute to local budget, promote economic growth, create jobs, and boost industrial production, helping Gia Lai province achieve its goal of double-digit economic growth in the coming years.

Hon Trau Island lies off the coast of De Gi estuary, about 10 km from shore. Currently, PNE AG of Germany has registered to conduct research and surveys for investment in the Hon Trau offshore wind power project, which has a total planned capacity of 2,000 MW and an estimated investment of $4.6 billion.

The project is divided into three phases, with phase 1 (750 MW) expected to begin operation before 2030.

Since 2019, PNE AG has been conducting research and project development activities, preparing all necessary conditions to rapidly implement the project once in-principle approval is granted.

In October 2024, PNE AG inaugurated its Vietnam office at ACB Building, 173 Le Hong Phong street, Tran Phu ward, Quy Nhon town, Binh Dinh province (now Quy Nhon ward, Gia Lai province).

At the event, its leadership affirmed that both the group and the Hon Trau offshore wind power project have received strong support and cooperation from local authorities. With its expertise, experience, and capacity, PNE committed to advancing the project with utmost effort and dedication, contributing to Vietnam’s green energy transition, the development of the offshore wind market, and local socio-economic growth.

In January 2025, the People’s Committee of Binh Dinh province (now part of Gia Lai) approved PNE AG subsidiary PNE Offshore Vietnam EINS GMBH to implement the PNE Hon Trau Mot commerce-service development project, with a total investment of over VND2.6 billion ($98.8 million). This project serves as a preliminary step for developing the Hon Trau wind power plant.

The Gia Lai provincial People’s Committee has also given in-principle approvals to three other wind power projects through bidding. Each project will operate for 50 years and must be implemented within 36 months. The projects include the 143MW Vinh Thuan wind power plant, the 160MW Van Canh 1 wind power plant, and the 180MW Van Canh 2 wind power plant.

The Vinh Thuan plant will cover over 50 hectares in Vinh Quang commune (formerly Vinh Thuan commune, Vinh Thanh district, Binh Dinh province). The project has a designed capacity of 143 MW, producing an estimated 239.9 million kWh annually, and will connect to the 110 kV national power grid.

Its total investment is VND4.68 trillion ($177.74 million), including VND4.65 trillion for construction costs and the remainder allocated for land compensation and resettlement.

The Van Canh 2 plant will occupy over 62 ha in Canh Lien and Van Canh communes. It will have a capacity of 180 MW, generating about 632.2 million kWh per year, and will connect to the 220 kV grid.

The project’s total investment exceeds VND7.77 trillion ($295 million), with VND7.74 trillion for implementation and VND27 billion for land compensation and resettlement.

Meanwhile, the Van Canh 1 plant will cover 56 hectares in Canh Lien commune, with an investment of VND6.9 trillion ($262 million).