Viet Nam Human Rights
Vietnam steps up clean energy development
The year 2020 marks a major turning point in
the energy
industry of Vietnam, with clean energy strengthening its solid
position and establishing itself as a profitable sector with significant
potential for development, while coal-fired
thermal power no longer holding the position as a favoured
energy source in the country.
The information was shared in the Vietnam Energy Update Report 2020 recently
released by the Centre of Media and Development Initiatives (MDI) under the
Vietnam Union of Science and Technology Associations.
The report examines key features of the development of Vietnam’s energy sector
from August 2019 to August 2020, with a focus on major power generation
sources.
According to the report, clean energy - including solar and wind - is now
making an increasingly important contribution to the national power system, and
has become a priority in the country's energy development orientation. Gas
thermal power, especially imported liquefied natural gas (LNG), is also a
sector with potential, with the construction of the first two gas import
terminals underway.
It also pointed out that at least six provinces across the country, including
Quang Ninh - the country’s biggest coal mine, have proposed to have coal-fired
power projects cancelled due to concerns about environmental pollution. Other
localities such as Bac Lieu, Long An, Thua Thien-Hue, Ha Tinh and Tien Giang
plan to replace planned coal-fired power plants with projects using imported
LNG.
Vietnam has increased its nationally determined contribution (NDC) to join
hands with the international community in efforts to reduce the impact of
climate change.
Laurence Tubiana, CEO of the European Climate Foundation (ECF), former France’s
Climate Change Ambassador and Special Representative for COP21, said that “over
the past year, Vietnam has begun to mark itself out as a clean energy success
story. Though there is some distance to go, its shift away from coal and rapid
uptake of renewables make it one of the leaders in Southeast Asia, and an
example to other nations looking to transition”.
“And Vietnam has much to gain, not just in terms of a safer climate and cleaner
air, but in jobs and investment. Around the world, renewables are proving to be
the smarter, cheaper option and it is inspiring to see Vietnam beginning to
seize the opportunity,” she stated./.
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All comments [ 20 ]
Renewable energy is a fast-growing sector in Asian countries, broadly, and Vietnam could benefit from investment in the sector.
Over the last decade, there has been rapid growth in Vietnam’s energy industry. The demand for electricity in Vietnam has significantly increased in line with its overall economic growth.
Although many sectors and businesses were impacted by the coronavirus pandemic, the country’s electricity consumption still rose.
Vietnam has been impacted by pollution and climate change, and so it requires the country to reform the power sector and adopt an effective transition to a renewable energy system.
According to one estimate from a Vietnamese government official, renewable energy should account for 10-15 percent of Vietnam’s energy mix.
Vietnam aims to unconditionally reduce its greenhouse gas (GHG) emissions by 8 percent by 2030 and its conditional target is to reduce GHG emission by 25 percent by 2030
The Vietnamese renewable energy market has risen gradually. In Vietnam, renewable energy projects will be regulated in terms of power development plans, the power purchasers and power purchase agreement execution process, and approvals and consents from the relevant authorities.
Under the Vietnamese law on investment, foreign investors can incorporate 100 percent ownership of Vietnamese companies in the energy sector.
Moreover, Vietnam has adopted flexible policies for the renewable energy in recent years, particularly paying attention to the solar and wind energy projects in the country.
Vietnamese policymakers try to promote the industry by reducing barriers to investment in renewable power.
Vietnam has incentives for solar power investment projects including the reduction of land-use fees, land rent, and surface water rent.
Vietnam is one of the most efficient power markets in Southeast Asia, driven by low-cost resources such as hydro and coal. The country has achieved around 99 percent electrification with relatively low cost in comparison to neighboring countries.
The country overtook Thailand to have Southeast Asia’s largest installed capacity of solar photovoltaic (PV) panels, with more than four gigawatts of capacity installed in the first half of 2019 alone. Electricity generation from solar panels jumped to 4.2 terawatt hours for the year.
One attractive approach is to plan and facilitate investment in renewable energy zones in the most prospective provinces for renewable energy, such as Ninh Thuận and Bình Thuận.
A focus is needed on making sure that renewable electricity is able to make its way from these zones to major demand centres such as Hồ Chí Minh City.
Fortunately, there is substantial potential for rooftop and floating solar in addition to ground-mounted projects. Approval processes would ideally ensure that projects are only located in sites in which there are low environmental and social impacts.
There will be a growing role for electricity storage to manage the intermittency issue. The good news is that Vietnam has many potential sites for pumped-hydro energy storage. Batteries and other forms of energy storage are also set to become important.
Reforms to administrative procedures, measures to strengthen power purchase agreements by reducing off-take risks, and introducing a price on carbon are also attractive options for Vietnam.
Foreign entities can acquire renewable projects in Vietnam. Foreign investors have bought plenty of solar and wind power plants and increased its ownership within the sector via stake acquisitions or business ventures.
Vietnam also has substantial potential to scale up wind power generation, with multiple offshore projects currently under construction. Before too long, Vietnam’s increasing reliance on coal-fired electricity could well become a thing of the past.
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