Vietnam recently announced that it has finalized a long-awaited power plan for this decade, with the goal of increasing wind energy and gas while decreasing dependency on coal.
The plan, known as PDP8, intends to ensure the country’s energy security while beginning the transition to carbon neutrality by mid-century. The government estimates that the plan will require USD 134.7 billion in capital for new power plants and infrastructure, with some of the money coming from foreign investors.
The Group of Seven (G7) countries and other wealthy nations pledged USD 15.5 billion in initial contributions to promote Vietnam’s transition away from coal in December 2022. To complete its planned transition to carbon neutrality with a comprehensive coal phase-out by 2050, the government believes it will need up to USD 658 billion, one-fifth of which must be spent this decade. The plan is for Vietnam’s power generation capacity to double to more than 150 GW by 2030, up from 69 GW at the end of 2020.
According to a government document seen by Reuters, power plants using domestic gas and imported liquefied natural gas (LNG) are set to become a critical source of power by 2030, with a combined capacity of 37.33 GW, or 24.8% of the total, with LNG accounting for the lion’s share. This represents a fourfold rise from 2020 when the country produced only about 9 GW of natural gas from South China Sea fields. It is not currently importing any LNG.
Wind, solar, and other renewable energy sources, excluding hydropower, are expected to meet at least roughly 31% of the country’s energy demands by 2030, up from around 25% in 2020. According to the document, if G7 pledges are completely implemented, their contribution may rise to 47%.