Vietnam’s government has green-lit a national plan for its power industry. The plan will see the country move away from coal while opening wind and gas avenues.
Power Development Plan 8 (PDP8) aims to secure Vietnam’s energy future up until 2030, with further a aim of achieving carbon neutrality by 2050.
By 2030, Vietnam aims to draw a minimum of 30.9% of its energy from renewable sources, increasing to 67.5% by 2050. Offshore wind, from which Vietnam generated no power in 2020, should give the country 15GW by 2035, accounting for around 18.5% of the total power mix.
The PDP8 also provides guidance for the provision of solar energy. A government statement said: “From now to 2025, there is no limit to the capacity of rooftop solar power development provided that the prices are reasonable and the existing transmission network is not overloaded, particularly in the areas where power shortage is likely to occur.”
The plan would see Vietnam’s power generation capacity more than double to more than 150GW by the end of the decade.
The PDP8 will require $134.7bn drawn from both government and foreign direct investment (FDI) to reach its 2030 goals. Much of this is expected to come in the form of FDI from the other G7 countries.
In 2020, the G7 collectively pledged $15.5bn to end Vietnam’s coal reliance. Vietnam is one of the world’s largest coal consumers, with it providing 30.8% of Vietnam’s energy. The Vietnamese Government predicts that with the PDP8, coal’s share of national power production will fall to around 20% by 2030.
Although PDP8 is estimated at $134.7bn through until 2030, the 2050 targets are set to be much more expensive. The Vietnamese Government has estimated that the energy transition period between 2031 and 2050 will cost between $399.2bn and $523.1bn in total investment capital.