DEVELOPING GREEN AND CLEAN ENERGY: THE GOVERNMENT’S STRONG COMMITMENT

Deputy Minister of Industry and Trade Dang Hoang An has stated that Vietnam has great potential and opportunities to develop green and clean energy. This is not only due to its favorable natural conditions but also the government’s proactive, long-term vision.

On January 24, at the 4th High-Level Conference of the Vietnam Energy Partnership Group (VEPG), Mr. Đặng Hoàng An emphasized that the government is strongly committed to restructuring the energy sector. This involves relying on domestic strengths while boosting cooperation and support from development partners.

According to the Deputy Minister, recent years have seen rapid growth in renewable energy, thanks to government incentives, with impressive results. By the end of last year, renewable energy sources had a total installed capacity of 20,670 MW, making up 27% of the country’s total capacity (76,620 MW). Electricity generated from renewables reached 31.508 billion kWh, accounting for 12.27% of the total electricity produced nationwide.

Vietnam now has 70 wind power projects (with a capacity of 3,987 MW) in commercial operation, producing 3.34 billion kWh in 2021—about 1.3% of the total electricity output. Solar power alone contributed around 10.8% of the total electricity produced in 2021. Biomass and waste-to-energy plants had a combined installed capacity of 321 MW by October 2021. Despite a challenging year due to the pandemic, these numbers are encouraging.

Mr. Dang Hoang An reiterated that Vietnam’s natural advantages and the government’s clear, long-term strategy provide a solid foundation for green energy growth. The government is taking bold steps to restructure the electricity and energy sectors, improve state-owned enterprises, push forward privatization, and gradually build a competitive electricity market as planned.

At the same time, Vietnam is advancing Phase 3 of its National Program on Efficient Energy Use.

Shifting to Sustainable Energy

While there are many advantages, Vietnam must also tackle challenges to ensure energy security while reducing the environmental impact of power generation. For example, rapid demand growth puts pressure on energy infrastructure, requiring large investments at a time when public debt is rising and privatization faces hurdles.

As the country industrializes and modernizes, energy demand keeps climbing—by double digits: 13% from 2000-2010, 10.5% from 2011-2019, though growth slowed in 2020 and 2021 due to Covid-19.

Meanwhile, limited domestic energy supplies increase reliance on imported fuels, especially for power generation, raising concerns about shortages.

A long-term, sustainable energy strategy tailored to Vietnam’s reality is key to guiding the sector’s development.

Resolution 55-NQ/TW, issued by the Politburo on February 11, 2020, outlines the Party’s roadmap for national energy development through 2030, with a vision to 2045.

The Ministry of Industry and Trade is turning this strategy into action by finalizing key plans like the 8th Power Development Plan, the National Energy Master Plan, and the Vietnam Coal Industry Development Strategy. These foundational projects will drive progress in the energy and electricity sectors moving forward.

In the next phase, Vietnam aims for a sustainable energy transition.

Dr. Ngo Duc Lam, an independent energy expert from the Vietnam Sustainable Energy Alliance and former Deputy Director of the Institute of Energy, said: “Vietnam made bold commitments at COP26 to fight climate change, targeting net-zero emissions by 2050. When the Prime Minister made that pledge, it was based on solid ground—renewable energy, mainly wind and solar.”

Wind power uses little land, unlike solar. Wind turbines take up minimal space, leaving room for other uses like farming.

Unlike coal, gas, or oil, wind turbines don’t burn fossil fuels to operate. Wind is a limitless resource, naturally available without supply worries.

Now, offshore wind power using sea breezes is gaining traction. Many countries are focusing on offshore wind because it offers stable, large-scale potential compared to onshore sites. However, it requires a strong foundation, which depends on various factors. Global technology trends suggest offshore wind will grow fast and costs will drop significantly.

According to the latest 8th Power Development Plan submitted by the Ministry of Industry and Trade, peak demand (Pmax) is projected at 59,300-61,400 MW in 2025, 86,500-93,300 MW in 2030, and 155,000-189,900 MW in 2045.

 Based on this, the Ministry proposes a total power capacity of about 146,000 MW by 2030 and 343,000 MW by 2045 (excluding existing rooftop solar at 7,755 MW and off-grid sources for specific loads, estimated at 2,700 MW in 2030 and 4,500 MW in 2045).

Compared to the adjusted 7th Power Plan, coal-fired power capacity will drop by about 14,800 MW.

Source: vietnamnet.vn