Solar, wind power insufficient for Vietnam’s energy security: expert

By Ta Nguyen
Thu, June 23, 2022 | 2:30 pm GMT+7
The 46.2 MW Wind Farm No.5 invested by Trung Nam Group in Ninh Thuan province, south-central Vietnam. Photo courtesy of the company.

The 46.2 MW Wind Farm No.5 invested by Trung Nam Group in Ninh Thuan province, south-central Vietnam. Photo courtesy of the company.

Electricity generation from liquefied natural gas (LNG), biomass, ammonia, and hydrogen should be thoroughly considered to help Vietnam achieve its carbon neutrality goal, an American specialist said.

Addressing an energy seminar in Hanoi on Wednesday, energy expert Sean Lawlor from the U.S. Embassy, said as a long-term partner of Vietnam, the U.S. is recommending Vietnam to take creative policy measures to attract foreign investment and step up energy transition to help implement the carbon neutrality commitments Vietnam’s Prime Minister Pham Minh Chinh made at the 26th UN Climate Change Conference in late 2021.

He added that solely relying on wind and solar power would not assure energy security, therefore, other sources like LNG, biomass, ammonia, and hydrogen should be on the priority list.

Lawlor said that Austria, Germany and other European economies have resumed operation of coal-fired power plants to counter the lack of Russia-supplied gas, but that they had to develop cleaner energy sources for long-term goals.

Coal-fired power is making up one-third of Vietnam’s total output, according to a report at the seminar. The country looks to reduce the proportion of this type of electricity to about 9.5% and raise renewables to 32% by 2045. The energy-thirsty economy is also encouraging low-carbon power sources to minimize emissions.

As of the end of 2021, Vietnam’s total wind and solar power installed was about 20,670 megawatts, accounting for 27% of the total installed capacity, according to the Ministry of Industry and Trade's department of electricity and renewable energy.

At the seminar, experts proposed several measures to support the country’s clean energy transition.

Deepak Maloo, head of wind power, Asia-Pacific region, General Electric, said finance and reasonable pricing are problems that any country has to encounter in the transition process. A possible measure, he said, is the integrated development of various energy sources together taking advantage of global technology.

Ho Chi Minh City-based private company TGS Green Hydrogen is preparing construction of its $840 million green hydrogen plant in the Mekong Delta province of Ben Tre, the country’s first hydrogen project.

The modern facility is designed to annually produce 24,000 tons of green hydrogen, 150,000 tons of ammonia, and 195,000 tons of oxygen in the initial state, according to a government release. The energy developer expects to put the plant into trial operation in the first quarter of 2024.

Regarding LNG-to-power, PM Chinh in early June ordered the industry ministry to recalculate the ratio of LNG power in the country’s energy mix under the draft power development plan VIII as the soaring price of imported LNG might make LNG-to-power plants until 2030 infeasible.

“Due to the Russia-Ukraine war, the price of imported LNG has soared to 15-20 U.S cents/kWh, while the current electricity selling price is 6-7 cents/kWh,” the prime minister wrote in a document sent to the ministry.

“This will be a hindrance to future negotiations on power purchase agreements between investors and Electricity of Vietnam. Moreover, LNG is a kind of fossil fuel that only helps cut CO2 emissions by half compared to coal-fired power,” the document read.

For renewable energy, policy-makers, industry insiders and experts are at odds over whether regulators should launch a bidding mechanism to select investors, or select investors via both bidding and non-bidding.

Comments (0)
  • Read More
VSIP starts work on industrial park project in northern Vietnam province Thai Binh

VSIP starts work on industrial park project in northern Vietnam province Thai Binh

Construction of the Vietnam-Singapore Industrial Park (VSIP) Thai Binh commenced on Wednesday in northern Vietnam, with the witness of Vietnamese Prime Minister Pham Minh Chinh and his Singaporean counterpart Lawrence Wong.

Industrial real estate - Wed, March 26, 2025 | 10:41 pm GMT+7

Vingroup starts building mega urban project in Vietnam's Mekong Delta

Vingroup starts building mega urban project in Vietnam's Mekong Delta

Vietnam’s leading private conglomerate Vingroup on Wednesday embarked on construction of the VND28 trillion ($1.1 billion) Vinhomes Green City, the first mixed-use urban development in its ecosystem in the Mekong Delta province of Long An.

Real Estate - Wed, March 26, 2025 | 10:11 pm GMT+7

Indonesia, China cooperate in digital technology

Indonesia, China cooperate in digital technology

Indonesia and China are expanding cooperation in the field of AI to promote digital transformation, especially in the fields of agriculture and smart cities.

Southeast Asia - Wed, March 26, 2025 | 10:01 pm GMT+7

Indonesia decides to join BRICS New Development Bank

Indonesia decides to join BRICS New Development Bank

Indonesian President Prabowo Subianto has announced the Government's decision to become a member of the New Development Bank (NDB), a multilateral development bank established by the five founding member states of the BRICS group.

Southeast Asia - Wed, March 26, 2025 | 9:57 pm GMT+7

Major Vietnamese broker SHS to double charter capital

Major Vietnamese broker SHS to double charter capital

Saigon-Hanoi Securities Corporation (SHS) plans to issue 894 million shares to increase its charter capital from VND8.13 trillion to VND17.07 trillion ($667.6 million), making it one of the top three securities firms in term of charter capital.

Companies - Wed, March 26, 2025 | 8:30 pm GMT+7

Elon Musk company okayed to pilot Starlink satellite internet service in Vietnam

Elon Musk company okayed to pilot Starlink satellite internet service in Vietnam

Vietnam has allowed the U.S.'s SpaceX to pilot Starlink low-orbit satellite internet service in the country on a pilot basis until January 1, 2031.

Industries - Wed, March 26, 2025 | 5:18 pm GMT+7

Danish toymaker Lego to open $1.3 bln Vietnam plant next month

Danish toymaker Lego to open $1.3 bln Vietnam plant next month

Denmark's Lego will officially open its factory in VSIP III Industrial Park in Vietnam's southern province of Binh Duong on April 9.

Industries - Wed, March 26, 2025 | 4:18 pm GMT+7

Top Singaporean firms earn high incomes in Vietnam

Top Singaporean firms earn high incomes in Vietnam

Singapore is the second-biggest foreign investor in Vietnam, with over $84 billion in registered investment capital as of end-January and many prominent investors raking in high incomes.

Companies - Wed, March 26, 2025 | 3:45 pm GMT+7

Vietnam, Singapore ink significant deals in Hanoi

Vietnam, Singapore ink significant deals in Hanoi

Vietnamese Prime Minister Pham Minh Chinh and his Singaporean counterpart Lawrence Wong on Wednesday witnessed the signing of many cooperation deals between agencies and enterprises of the two countries.

Economy - Wed, March 26, 2025 | 2:51 pm GMT+7

Vietnam's major policies are reshaping economic development

Vietnam's major policies are reshaping economic development

Major policies are reshaping Vietnam's approach to economic development, which focuses on science, technology, and private enterprises, said a leader at the Vietnam Chamber of Commerce and Industry (VCCI).

Economy - Wed, March 26, 2025 | 12:11 pm GMT+7

PM okays over $10 bln urban area project in central Vietnam

PM okays over $10 bln urban area project in central Vietnam

The over VND260.3 trillion ($10.16 billion) Cam Lam New Urban Area project in the south-central province of Khanh Hoa has received in-principle approval from Prime Minister Pham Minh Chinh.

Real Estate - Wed, March 26, 2025 | 8:58 am GMT+7

S Korea's KIM Fund raises stake in Vietnam's marine transportation firm VIPCO

S Korea's KIM Fund raises stake in Vietnam's marine transportation firm VIPCO

South Korea’s KIM Fund has increased its stake in Hai Phong city-based Vietnam Petroleum Transport JSC (VIPCO, HoSE: VIP) to 2.73%, making it the latter’s second-largest shareholder.

Companies - Wed, March 26, 2025 | 8:30 am GMT+7

Vietnam, Singapore seek cooperation chances in semiconductor industry

Vietnam, Singapore seek cooperation chances in semiconductor industry

The Vietnam Trade Office in Singapore, in collaboration with the Singapore Semiconductor Industry Association (SSIA), organized a hybrid seminar on Monday to introduce Vietnam's potential, advantages, and development strategies for the semiconductor industry.

Southeast Asia - Tue, March 25, 2025 | 10:55 pm GMT+7

OV intellectuals in UK suggest blueprint for Vietnam’s int’l financial hub ambition

OV intellectuals in UK suggest blueprint for Vietnam’s int’l financial hub ambition

Vietnam can rise as a major international financial centre, both regionally and globally, with a strategic vision that highlights transparency, a skilled workforce, modern infrastructure, robust financial markets, and strong international branding, the Vietnam Intellectual Society in the UK and Ireland (VIS) told visiting Vietnamese Permanent Deputy Prime Minister Nguyen Hoa Binh in a recent meeting.

Southeast Asia - Tue, March 25, 2025 | 10:55 pm GMT+7

Vietnam Deputy PM discusses financial center development with ECB

Vietnam Deputy PM discusses financial center development with ECB

Vietnam's Standing Deputy Prime Minister Nguyen Hoa Binh on Monday met with representatives of the European Central Bank (ECB) to discuss plans for the establishment of financial centers in Vietnam, as part of his working visit to Germany – the final stop in his European tour.

Southeast Asia - Tue, March 25, 2025 | 10:52 pm GMT+7

Indonesia keeps commitment on energy transition

Indonesia keeps commitment on energy transition

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto on Monday affirmed that the U.S. decision to pull out of the Just Energy Transition Partnership (JETP) will not impact the other partners' commitment to it.

Southeast Asia - Tue, March 25, 2025 | 10:35 pm GMT+7