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Renewables
Aniket Kumar
Aniket Kumar
 · Posted in Renewables

Vietnam Raises Wind and Solar Energy Targets to Meet Growing Demand

 

Vietnam has embarked on an ambitious journey to transform its energy sector, focusing on renewables to meet soaring demand, reduce emissions, and ensure long-term energy security. The country’s strategy is comprehensive, targeting not only capacity increases but also policy, financial, and technological reforms.

Key Renewable Energy Targets and Milestones

  • Wind and Solar Power:

    • Onshore wind power will be promoted until 2030, with offshore wind potential to be assessed for post-2030 development.

    • Solar power expansion will focus on remote, border, and island areas lacking grid connectivity.

    • By 2030, wind power generation is targeted to reach 16 TWh (2.7% of total power), and solar to 35 TWh (6%), with further increases to 53 TWh (5%) and 210 TWh (20%) respectively by 2050.

  • Hydropower and Biomass:

    • Hydropower generation is set to rise from 56 TWh in 2015 to 96 TWh in 2030.

    • Biomass and biogas will see increased consumption in industrial and agricultural sectors, aiming for 60% by 2030 and 70% by 2050.

  • Greenhouse Gas Reduction:

    • Vietnam aims to cut greenhouse gas emissions by 25% by 2030 and 45% by 2050, compared to 2014 levels.

    • The country targets net-zero emissions by 2050, with renewable energy comprising 67.5–71.5% of the power mix by that time.

Policy Measures and Incentives

  • Sustainable Renewable Energy Fund:

    • A dedicated fund, financed by the state budget and environmental fees on fossil fuels, will support renewable projects, offering investment guarantees and subsidies, especially for off-grid projects.

  • Renewable Portfolio Standard (RPS):

    • Large power generation companies (over 1000 MW, excluding BOT projects) must meet minimum renewable capacity quotas: 3% by 2020, 10% by 2030, and 20% by 2050.

  • Net Metering and Tax Incentives:

    • Customers who develop renewable energy projects can benefit from net metering, while projects receive preferential tax, land, and environmental policies.

  • Smart Grid and Regional Integration:

    • Plans include developing a smart grid to integrate large-scale renewables and linking Vietnam’s grid with neighbouring countries, aiming to export 5,000–10,000 MW of electricity by 2030.

Investment and Industrial Development

  • Financial Commitment:

    • The government estimates that $134.7 billion will be needed for power sources and transmission grids by 2030, with an additional $399–523 billion required through 2050.

    • International partners have pledged $15.5 billion to support Vietnam’s transition under the Just Energy Transition Partnership.

  • Industrial Ecosystem:

    • By 2030, Vietnam aims to establish two interregional renewable energy industrial and service hubs in high-potential areas, covering electricity production, equipment manufacturing, and renewable industry development.

Broader Socio-Economic Goals

  • Economic Growth:

    • The energy strategy supports Vietnam’s target of 7–10% annual GDP growth, ensuring energy supply keeps pace with industrialisation and urbanisation.

  • Social Impact:

    • The strategy aims to increase the use of high-efficiency stoves and solar heating in households, targeting 26% adoption of solar heat equipment and 100% use of efficient stoves by 2030.

Summary Table: Key Targets to 2050

YearWind Power (TWh)Solar Power (TWh)Hydropower (TWh)Renewables in Power Mix (%)GHG Emissions Reduction (%)20202.51.49075203016359610 (excluding hydro)25205053210—67.5–71.545

Vietnam’s renewable energy strategy is multifaceted, combining ambitious capacity targets, strong policy support, significant financial investment, and a vision for industrial and social transformation.