This undated photo shows solar panels installed on the floating system at Da Mi reservoir in Vietnam. (PHOTO COURTESY OF DHD/ADB VIA VIET NAM NEWS)
Vietnam has the potential to be the renewable energy powerhouse of Southeast Asia, but the country still needs to develop more stable resources to ensure energy security, experts say.
Globally, Vietnam was among the top 10 countries with the most installed solar capacity in 2020, said Vietnam’s Minister of Natural Resources and Environment Tran Hong Ha, adding that the country also has the greatest wind resources in Southeast Asia, with estimated capacity of 311 gigawatts
After aggressive expansion of its renewables sector in the past few years, Vietnam is now a leader in Southeast Asia in terms of installed renewable energy capacity, said Le Hong Hiep, senior fellow of ISEAS-Yusof Ishak Institute in Singapore.
But a key challenge confronting Vietnam is that, when weather conditions are not favorable, many renewables projects do not generate as much energy as expected.
So, despite the country’s huge resources, “how to develop such resources into sustainable sources of energy is another issue”, Le told China Daily.
Vietnam’s Minister of Natural Resources and Environment Tran Hong Ha said in a webinar on June 15 that from 2018 to 2020, Vietnam’s solar photovoltaic capacity increased from 86 megawatts to about 16,500 MW, giving it the largest installed solar energy capacity of any of the 10 member countries of the Association of Southeast Asian Nations.
Globally, Vietnam was among the top 10 countries with the most installed solar capacity in 2020, the minister said, adding that the country also has the greatest wind resources in Southeast Asia, with estimated capacity of 311 gigawatts.
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Le, in Singapore, noted that Vietnam at the United Nations COP26 summit in November announced its goal to achieve carbon neutrality by 2050, adding that this goal reflects the government’s strong commitment to sustainable development and its confidence in domestic green energy resources.
Farmers work in a paddy field next to large electricity pylons on the outskirts of Hanoi on Feb 15, 2022. (NHAC NGUYEN / AFP)
Thanks to the government’s attractive tariff programs, there was an explosion of renewable energy projects such as solar – but they still account for a relatively small share in the total installed capacity of Vietnam’s power system, said Adam McCarty, chief economist at research and consulting firm Mekong Economics in Hanoi
“Many people believed it is too ambitious for a country like Vietnam, because Vietnam is still a developing country and does not have enough resources to (make the) transition to green energy so quickly,” Le said. “Even countries like China, and some developed countries, aim for 2060.”
In its draft National Power Development Plan for 2021-30, Vietnam proposed to cut coal-fired electricity to less than 10 percent of total capacity by 2045, while wind and solar power’s share is expected to increase to about 50 percent, according to Vietnam News Agency.
“Transition to clean energy is not a cheap proposition,” said Adam McCarty, chief economist at research and consulting firm Mekong Economics in Hanoi.
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Thanks to the government’s attractive tariff programs, there was an explosion of renewable energy projects such as solar – but they still account for a relatively small share in the total installed capacity of Vietnam’s power system, McCarty told China Daily.
Le said Vietnam needs a clearer legal and policy framework for investors to follow.
He said the ongoing global energy crisis has pushed Vietnam to further develop the renewable energy sector because the long-term solution for Vietnam and other countries is to develop renewable energy sources and become less reliant on fossil fuel.
The crisis "reminds Vietnam of the importance of having strong energy security,” said Le, adding, too, that it may not be wise to depend fully on renewable energy, so Vietnam needs to find a balance.
Besides renewables, discussions have been held in Vietnam recently on the development of other energy sources such as nuclear power.
This photo taken on April 23, 2019 shows a man walking past wind turbines at the Phu Lac wind farm in southern Vietnam's Binh Thuan province. (MANAN VATSYAYANA / AFP)
Le Hong Hiep, senior fellow of ISEAS-Yusof Ishak Institute in Singapore, said Vietnam still needs to find more feasible and practical sources of energy, including coal, gas and even nuclear, to achieve its carbon neutrality goal while enhancing energy security
Vietnam is also working to build its first green hydrogen plant in the southern province of Ben Tre, with an investment of $840 million, according to Reuters. With trial operation due to start in the first quarter of 2023, the project is expected to generate 24,000 metric tons of green hydrogen, 150,000 tons of ammonia and 195,000 tons of oxygen a year.
While the future of such advanced technology in developing new energy sources is promising, Le said Vietnam still needs to find more feasible and practical sources of energy, including coal, gas and even nuclear, to achieve its carbon neutrality goal while enhancing energy security.
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Noting Vietnam has been trying to offer incentives to attract foreign investors, McCarty said foreign investment can only play a small part toward achieving a green economy and there are other policy areas the government must focus on.
These include protecting natural forests and biodiversity, improving waste processing, and reducing pollution. “Foreign direct investment can solve some of the problems, with incentives, but not the whole package of the circular economy,” McCarty said.
kelly@chinadailyapac.com