15:05 (GMT +7) - Thursday 22/08/2019

Vietnam Today

MoIT & Danish energy ministry release Vietnam Energy Outlook Report

Released at: 18:58, 21/09/2017

MoIT & Danish energy ministry release Vietnam Energy Outlook Report

Photo: Quang Huy

Report provides data analysis to formulate future energy plan.

by Quang Huy

Vietnam has the potential to generate up to 40 GW of electricity from solar sources, 12 GW from wind, and 3.7 GW from biomass by 2035, according to the Vietnam Energy Outlook Report 2017.

Compiled by the Ministry of Industry and Trade (MoIT) and Denmark’s Ministry of Energy, Utilities and Climate, the report aims to provide an analysis of available data in order to formulate an energy plan for the future.

Research shows that Vietnam moved from being an energy exporter to a net importer in 2016. This change will have a significant impact on energy security and in return makes renewable energy an effective solution to meet the country’s increasing energy demand.

It’s predicted that the share of imported energy in total primary energy will increase to 37.5 per cent in 2025 and 58.5 per cent in 2035. This means that Vietnam will depend on imported fuel, especially coal. This situation can be resolved, however, by exploiting domestic renewable energy sources and improving energy efficiency, the report noted.

According to experts, Vietnam should issue more support policies to achieve the targets in the Renewable Resource Development Strategy, approved in 2015 by the government. Targets include increasing the share of renewable energy in total primary energy consumption by 31 per cent by 2020, 32.3 per cent by 2030, and 44 per cent by 2050.

Policies should be adopted that allow for the growth of the renewable energy market and provide preferential tax and land use terms for renewable energy projects.

Experts also recommended that Vietnam implements mechanisms to promote renewable energy development, including creating a sustainable financial source via funds from international donors, preferential loans from financial institutions, and developing the capital market from commercial banks for investment in renewable energy projects.

Speaking at the release of the report, Deputy Minister of Industry and Trade Hoang Quoc Vuong said it will be helpful for Vietnam in orientating the development of its energy sector in the future.

Danish Secretary of State and Deputy Minister of Energy, Utilities and Climate Thomas Egebo said that the major challenge Vietnam faces was not how to develop but how to develop sustainably. “Denmark is willing to share its experience to assist Vietnam to reach its targets in energy development as well as sustainable development,” he said.

According to figures from MoIT, forecasts for energy demand in a business-as-usual (BAU) scenario indicates that, by 2035, total demand will be nearly 2.5 times higher than in 2015.

In 2000, renewable energy, including biomass and hydro power, contributed 53 per cent of total primary energy supply. This fell to 24 per cent in 2015. In the same period, the share of coal grew from 15 per cent to 35 per cent of total supply.

This trend is predicted to continue as domestic supply from hydro and biomass seems unable to meet increasing demand. Power plants play a key role in domestic coal consumption, followed by the cement, fertilizer, and chemical sectors. Total domestic coal consumption in 2015 was about 43.8 million tons, of which power plants consumed 23.5 million tons.

Electricity is taking up an increasing share in final energy consumption, and electricity demand is expected to grow by 8 per cent annually until 2035, equal to an additional 93 GW of power generation capacity. Almost half of new capacity is supposed to be coal fired and about 25 per cent will be from renewable energy.

User comment (0)

Send comment