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Vietnam plans to double power generation capacity by 2030

Out-Law News | 07 May 2022 | 3:20 am | 1 min. read

Vietnam’s government plans to double its installed power generation capacity to 146 gigawatts (GW) by 2030, according to press reports.

The country’s government is planning to submit its latest draft power development plan to the prime minister next month. The plan will restrict coal-fired power plants’ development in Vietnam, and open to other fuel sources such as hydrogen and ammonia, Reuters said.

Yeap John

John Yeap

Consultant

A clear and transparent regulatory structure for all such solutions will greatly facilitate the deployment of all these needed solutions for meeting growth and net zero.

Renewables expert John Yeap of Pinsent Masons said: “Vietnam’s continuing economic growth invariably means an increasing need for energy. Unlike industrialised nations that have been able to meet their increasing energy needs without global scrutiny, countries such as Vietnam have to do so with a view to both meeting international commitments to net zero and meeting national demand needs. With the move away from coal, major large baseload generation will have to come from gas as a transition fuel and perhaps co-firing with ammonia in the short to medium term. In the longer term other solutions such as offshore wind, hydrogen as well as storage will need to be considered.”

“There will undoubtedly be key roles for international bodies such as multilateral development agencies, technology and capital providers including concessionary fund providers, to play in Vietnam’s energy growth and transition journey. However, there are not just cost and technological considerations involved in all these solutions, but also regulatory and legal considerations as well. A clear and transparent regulatory structure for all such solutions will therefore greatly facilitate the deployment of all these needed solutions for meeting growth and net zero,” he said.

This follows Vietnam’s commitment to become carbon neutral by 2050, which it announced at the United Nations climate conference in Glasgow (COP26) in November 2021.

In March, Vietnam’s industry and trade minister Nguyen Hong Dien said that the country would need international concessional capital support in order to ensure energy security and reach its net zero emission target by 2050.

The country published its draft Power Development Master Plan VIII in late 2021, aiming to increase its offshore wind power capacity to 36GW by 2045.