Vietnam, a country heavily dependent on coal for its energy needs, has ambitious plans to significantly increase its power generation capacity by 2030.
The country’s newly revised national power plan outlines a strategy that prioritises a shift towards renewable energy sources and the introduction of nuclear power, according to a Reuters report.
This move signifies a significant change in Vietnam’s energy policy, as it seeks to reduce its reliance on fossil fuels and diversify its energy mix.
The expansion of renewable energy sources, such as solar and wind power, is expected to play a crucial role in achieving the country’s power generation goals.
Additionally, the inclusion of nuclear power in the energy mix marks a major step for Vietnam, as it explores alternative sources of energy to meet its growing demand.
Total investments
This ambitious plan reflects Vietnam’s commitment to sustainable development and its efforts to address the challenges of climate change.
By transitioning towards cleaner energy sources, the country aims to reduce its carbon emissions and promote a greener future.
The Vietnamese government stated that reaching the targets will necessitate a total investment of $136.3 billion by 2030. This equates to over a quarter of the country’s 2024 gross domestic product.
To avoid power shortages that have alarmed foreign investors and to reduce its reliance on coal, the Southeast Asian industrial hub must rapidly expand its power supply to keep up with rising electricity demand.
Vietnam’s government announced a plan late on Wednesday to increase its total installed capacity to between 183 and 236 gigawatts by 2030.
This is a significant increase from the more than 80 gigawatts at the end of 2023.
Focus on nuclear
In order to do so, the country is resuming its investment in nuclear power, despite having suspended the program in 2016 due to budgetary restrictions and the Fukushima nuclear disaster in Japan.
The government announced that the initial nuclear power plants, with a combined capacity of up to 6.4 GW, are expected to be operational between 2030 and 2035.
They also stated that an additional 8 GW capacity would be added by mid-century.
The International Atomic Energy Agency had said that small modular reactors are still under development, but they would be more affordable to build than large power reactors.
Officials have said Vietnam has discussed these small modular reactors.
Earlier this year, the government announced its intention to engage in discussions with foreign partners, including Russia, Japan, South Korea, France, and the United States, regarding nuclear power projects.
Following this announcement, Korea Electric Power Corp expressed interest in Vietnam’s nuclear projects on Tuesday, as the company’s chief visited the country.
Power shares
The government announced that the new plan will increase solar power’s share of total capacity to between 25.3% and 31.1% by 2030.
This is an increase from 23.8% in 2020. Additionally, onshore and nearshore wind energy will rise to between 14.2% and 16.1% by 2030, compared to almost none at the beginning of the decade.
Authorities have established new targets following concerns among investors stemming from a retroactive adjustment to preferential pricing for solar and onshore wind energy producers.
The plan outlines a significant shift in energy sources, with coal-fired power plants’ share of total generation capacity decreasing from approximately one-third in 2020 to between 13.1% and 16.9%.
Meanwhile, liquefied natural gas plants, currently non-existent in the mix, are projected to contribute between 9.5% and 12.3% of the total generation capacity.
The Vietnam government’s target for offshore wind energy is 6-17 GW between 2030 and 2035. While an earlier goal of 6 GW for this decade was set, no offshore wind energy has been built yet.
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