return icon

Vietnam reconsiders electricity sources after making international energy commitments

Vietnam’s commitments at 26th United Nations Climate Change Conference of the Parties (COP 26) will have a big impact on the country’s energy system. 



To fulfill the commitments, Vietnam will have to reduce usage of fossil fuel and increase renewable energy.

Game-changing commitment

Offshore wind power is one of the renewable energy resources that will help Vietnam fulfill the ‘net zero’ commitment by 2050.

In order to reach the goal, the Government needs to reconsider the draft of the eighth national power development plan (Plan 8), significantly increasing the proportion of renewable power in the national system.

According to GWEC (Global Wind Energy Council), there needs to be both renewable energy development and fossil fuel elimination. It’s necessary to increase storage capacity to balance the national grid, remove carbon from the atmosphere, and build an electricity pricing mechanism.

Regarding the investment rate of wind power, GWEC said 67 percent of offshore wind power costs were cut in 2013-2020 and another 30 percent cut is expected to be reached in the next five years.

The Levelized Cost of Energy (LCOE) has dropped by two-thirds in in the last 10 years and the index is expected to decrease further in the time to come thanks to the rapid development of technology, with bigger turbines and higher efficiency (20 MW turbine by 2030), and higher power factor, thus helping to increase electricity output, improve cost effectiveness in installation/operation and maintenance, and increase harbor capacity effectiveness.

Also, developers’ experience can help reduce the installation time from three to one day per MW, thus reducing risks for investors in developed markets and lowering financial costs.

GWEC has proposed that the Government of Vietnam apply the FIT (feed in tariff) mechanism for the first 4-5GW of offshore wind power.

Peerapat Vithayasrichareon from RISE of IEA (International Energy Agency) said that four major factors increase the flexibility of electricity system – power plants, national grid, electricity storage and electricity demand management. Thanks to these, the integration of renewable energy types will be safe, reliable and cost saving.

The experts said expansion of transmission lines will allow sale of electricity among areas. With a high proportion of wind and solar power, cross-border buying and selling should be expanded to minimize the cut rate.

Long-term planning

Do Thi Viet Ha, an energy expert, speaking at a workshop on power held by VietNamNet recently, said that Vietnam’s commitments at COP 26 will have great impact on the national power system which will see decreases in fossil fuel use and increase in renewable energy.

However, it’s not easy to insert more renewable power into the system, and it will cause production and operation costs to increase.

Noting that many wind and solar power plants in Vietnam have had to cut electricity output, she said electricity prices will decrease and renewable energy will be the backbone of energy security only when Vietnam’s electricity sector is at a relatively high level like developed countries, with hardware, transmission lines, stations, control systems, SCADA (Supervisory control and data acquisition), and smart grid.

“Vietnam will have to spend money and time to build or, in other words, a transition period,” she said.

“I hope the moment will come soon with Vietnam’s great efforts,” she said.

For the time being, Ha said that the electricity transmission network is still weak which will need five to 10 more years to be upgraded and built anew. Meanwhile, the legal framework and procedures for site clearance are not simple.

“I am optimistic about one thing. If we can overcome this difficult period, there will be bright prospects for Vietnam’s renewable power,” she said.

After that period, the production cost of renewable power will decrease, and offshore wind power will be abundant, while the system will operate more smoothly and smart grid and SCADA will improve, according to Ha.

“By that time, we will get benefits from renewable power. This is a competitive market and consumers will be the beneficiaries. The electricity price increases will stop, and there will be a lot of opportunities for industry growth and new jobs as we can catch up with renewable energy trends and produce ‘green hydrogen’, that gradually replaces domestic fuel," she said. 

Luong Bang

Distressed by Covid-19, wind power developers want FIT to be extended

Distressed by Covid-19, wind power developers want FIT to be extended

Unable to have commercial operation date (COD) prior to November 1, 2021, many wind power investors have fallen into dilemma.

Solar and wind power: the race among investors

Solar and wind power: the race among investors

The Feed in Tariff (FIT) incentive helps attract a private investors but there are still bottlenecks that causes them to hesitate to pour money into solar and wind power projects.


Garden on mountaintop brings VND5 billion a year to Pa Cop village farmer

Farmer Do Quy Hanh in Pa Cop village, a Thai ethnic minority man in Pa Cop hamlet in Son La province, has his own secrets to growing bountiful orange and longan orchards, bringing profit of VND5 billion a year.

Young people invent anti-cheating software for online exams

As the fourth wave of the COVID-19 pandemic hit the country in 2021, students had to study and take exams online. However, cheating on online exams has caused headaches for schools.

Fed rate hike's impact on Vietnamese economy not significant

The latest interest rate hike by the US Federal Reversal (Fed) will weigh on the global economy, including Vietnam, but experts expect impacts of the Fed’s move on the country will not be significant.

Vietnam Blockchain Union officially debuts

The Vietnam Blockchain Union (VBN) debuted on May 17 with the aim of connecting the local blockchain community to state management agencies to develop legal frameworks for the technology and to accelerate the development of VN's digital economy.

Vietnamese students champion int’l environmental competition

A team of three Vietnamese high school students has won an international prize on environmental sustainability.

NA Chairman meets with Lao PM, discussing measures to boost ties

National Assembly Chairman Vuong Dinh Hue met with Lao Prime Minister Phankham Viphavanh in Vientiane on May 17, where the two leaders discussed measures to promote bilateral relations.

Vietnamese e-commerce likely to reach US$39 billion by 2025

Vietnam’s e-commerce market has recorded strong growth over the years and is likely to bring in US$39 billion in value by 2025, according to data released by the German market research firm Statista.

The results of press privatization

The number of news articles and other articles published in electronic newspapers and magazines have soared recently.

Prime Minister meets representatives of investment funds, groups in New York

PM Pham Minh Chinh have met with leaders of global investment firm Kohlberg Kravis Roberts (KKR) and Visa Group in New York and held phone talks with the Deputy Managing Director of the International Monetary Fund (IMF) during his trip to the US.

SEA Games 31: Vietnam bags 88 gold medals as of May 16

Vietnam has so far obtained 197 medals, including 88 golds, at the ongoing SEA Games 31, topping the tally and leaving other competitors far behind.

Vietnam to play more active role at UN: PM

Vietnam will continue bringing into play its role and making more active and constructive contributions to the common work of the UN in all the three pillars – security-politics, development and human rights, PM Pham Minh Chinh has affirmed.

Billionaire list: Tran Dinh Long loses position, new names emerge

The HPG shares of Hoa Phat Group have seen a fall in price to VND35,900 per share, while billionaire Tran Dinh Long fell from the second position on the list of Vietnamese stock billionaires.

Building a national brand for Vietnamese rice

At wet markets, consumers can find varieties of rice stored in bowls and baskets from age-old brands such as Nang Thom Cho Dao, Huong Lai, Tai Nguyen and Bong Su.

National Development Master Plan: confusion due to conflicting legal provisions

The Law on Planning was approved by the National Assembly in 2017 and took effect on January 1, 2019, but after more than three years, the planning work has not been completed. Many problems have arisen and need the National Assembly’s comments.

First Vietnamese woman reaches summit of Mount Everest

Nguyen Thi Thanh Nha, also known as Céline Nha Nguyen, has become the first Vietnamese woman to conquer the summit of Mount Everest.