Energy-thirsty Vietnam expects renewable energy to make up 50.3% of the total capacity generated by 2030, as outlined in the country’s latest power development plan.
Vietnam’s Prime Minister Pham Minh Chinh has approved the plan for 2030 with a vision to 2050, known as PDP VIII, the Ministry of Industry and Trade said late on Monday.
The plan will ensure energy security for the fast-expanding country based on forecast annual GDP growth of 7% until 2030, the ministry said.
PDP VIII says Vietnam needs $134.7 billion of funding to develop new power plants and grids between 2021 and 2030. The 2031-2050 period will require $399.2-523.1 billion of funding, with $364.4-511.2 billion for generation and $34.8-38.6 billion for transmission.
Among power generation sources, coal will account for 20.5% by 2030, down from almost 29% in 2020. Gas will make up 21.8% by 2030, up from 10.2% in 2020.
Renewable sources (including hydroelectricity, solar and wind power, and biomass) will account for 50.3% by 2030, but contributions from hydroelectricity alone will drop to 20% from 30% in 2020.
PDP VIII also includes generating green energy for export, with a target of 5-10 gigawatts (GW) by 2030.
The ministry said that by 2030, half of office buildings and homes in the country will be powered by rooftop solar panels. However, this source will not be connected to the national grid.
Vietnam is seeking to reach carbon neutrality by 2050. The new plan says there will be no coal-fired plant construction after 2030, step by step mixing biomass, ammonia; prioritizing gas and gradually shifting to mixed fuel combustion towards complete combustion of hydrogen and ammonia in the long term.
Notably, there will not be new LNG-to-power projects after 2035.
By 2050
Coal will only account for 4.5% of the total capacity generated by 2050. And then coal will no longer be used for electricity production.
Gas sources will increase to 40.3 GW by 2035 with no further developments after that. Gas power will be cut to 7% by 2050.
PDP VIII expects renewable energy sources (including hydroelectricity) to generate up to 400 GW by 2050, equal to about 70% of total power generation capacity.