Vietnam is making significant changes to its energy plans, with a new emphasis on large solar farms and reduced dependence on coal and natural gas. The country, known for its fast-growing economy, is now targeting to derive 16% of its energy from solar power, a substantial increase from its previous goal of 5%.
The revised policy draft, expected to be finalized soon, includes a shift away from offshore wind projects towards more onshore wind capacity, rooftop solar installations, and energy storage solutions. The decision to prioritize large solar farms over offshore wind and gas projects is based on cost-effectiveness and ease of construction.
With a projected energy demand of over 211 gigawatts by 2030, Vietnam is gearing up for a significant expansion in solar power capacity to meet the growing needs of its economy. This surge in demand, up by 40% from previous estimates, surpasses Germany's current total energy capacity.
Despite the rapid growth of solar energy in recent years, Vietnam faced challenges in 2020 due to an overloaded electricity grid that struggled to accommodate the intermittent nature of solar power generation. The country's reliance on coal has increased, making it one of the world's top coal importers.
While Vietnam continues to invest in clean energy sources, it is also ramping up coal usage to compensate for reduced hydropower output caused by droughts and to meet escalating demand from businesses relocating from China. The country remains a significant coal producer in Southeast Asia, with a notable increase in coal imports in recent years.
Efforts to transition away from coal are hindered by the need for time to recoup investments in existing coal-fired power plants. Vietnam's energy landscape is evolving, with a focus on balancing clean energy expansion with the realities of current energy needs and infrastructure limitations.
As Vietnam navigates its energy transition, the country is working towards upgrading its electricity grid and exploring innovative solutions to meet its energy goals while addressing environmental concerns and economic demands.
