Vietnam Renewable Energy Options
There is a gradual shift towards renewable energy in Vietnam alongside the conventional power generation industry.
Vietnam has good renewable energy sources including solar, wind, biomass, and hydropower. Having renewable sources that are sufficient and readily available, the country is well-positioned to meet its surging energy needs through alternative power. The trend towards energy in Vietnam has been reflected in the Master Plan for Power Development (PDP) over the past several years.
There is a gradual shift towards renewable energy in Vietnam alongside the conventional power generation industry. Vietnam has followed the global trend of developing renewable energy. Taking advantage of its geographical location, Vietnam is in the process of shifting its focus to renewable energy especially in the solar and on shore wind sectors. The Vietnamese government (GVN) has revised the Law on Electricity, Law on Economical and Efficient Use of Energy, and related laws to attract and encourage the public to use renewable energy.
Because of Vietnam’s industrial base continued rapid development, demand for energy is forecasted to increase by 8% by 2023. Creating a need for new energy sources.
Vietnam’s current installed power capacity is 24.1% in the mix of ASEAN member countries, second only to Indonesia at 24.9% (www.aseanenergy.org). Nationwide, Vietnam will require about 60WG of power in 2021 but is predicted to increase to 97GW in 2025, resulting in a capacity growth of 6-7GW annually to meet local demand. According to Industry & Trade Magazine, Ministry of Industry and Trade of Vietnam (MOIT), it is forecasted that a total investment of approximately USD 150 billion by 2030 will be needed to meet such demand. Vietnam’s total power capacity was 69GW in 2020, with renewable energy accounting for 17GW, or 25.3% of the energy mix, according to the Vietnam Power Group (EVN).
With the increasing demand for power, Vietnam must balance the development of power projects, with the need to develop a more efficient and robust transmission system and smart energy grid. This will require a large amount of investment and advanced technology in order to modernize the power generation, transmission and distribution network.
For further information, please contact Commercial Specialist - Janice Tran at Bich.Tran@trade.gov.