Vietnam unveils $135bn power plan for 2030

Vietnam's prime minister has approved a national electricity development master plan for 2021-30, which aims to develop new power plants and grids, and encourage more renewable energy use in a move away from coal.

Vietnam estimates that a total investment of $134.7bn is required for the development of power sources and transmission grids up until 2030, said the country's ministry of industry and trade on 15 May. It estimates that a further $399.2bn-523.1bn will be required over 2031-2050 for the same purpose.

The electricity master plan is aimed at developing its power sector over 2021-30 to ensure national energy security and form an energy system based on renewable energy and new energy.

Under the plan, the country aims to develop its electricity sources and transmission grids, link its power grids with other countries in the region, and export up to 5,000-10,000MW of electricity by 2030. It also plans to develop a smart grid system that can integrate and allow for the safe operation of large-scale renewable energy sources. But more details on the plan have not been disclosed.

The country expects that by 2030, two inter-regional renewable energy industrial and service sectors will be formed, which involves electricity production, transmission and consumption, the manufacturing of renewable energy equipment, and developing a renewable energy industry in areas with "great potential," the ministry said.

Vietnam is targeting net zero emissions by 2050. Under the plan, the country aims for renewable energy to make up 67.5-71.5pc of its power mix by 2050, with greenhouse gas emissions from power generation reaching about 204mn-254mn t by 2030, and eventually falling to 27mn-31mn t by 2050. Vietnam aims to reach peak emissions of no more than 170mn t by 2030, without providing details on what type of emissions.

But Vietnam currently relies heavily on coal-powered generation, which made up 38pc of the country's total generation in January-October 2022, according to state controlled utility EVN. The country is aiming for an average GDP growth of about 7pc/yr over 2021-2030, and its coal-power fleet is crucial to power its economic growth prospects. Coal-fired generation is therefore likely to remain in the country's power mix despite its plans to expand renewable energy.

A group of developed countries that include the UK, Japan and the US have agreed to mobilise $15.5bn in public and private finance over the next 3-5 years to help Vietnam achieve its 2050 net zero goals, under a Just Energy Transition Partnership signed in December. The partnership aims to limit Vietnam's peak coal-fired capacity to 30.2GW compared with the current plan of 37GW.

By Prethika Nair