Vietnam has increased its solar and wind capacities over the past four years, with the share of solar power in electricity generation rising from practically nothing four years ago to 11% in 2021. (Photo: VietnamPlus)
Hanoi (VNA) - Vietnam is undergoing a transition to clean energy at an accelerating rate and is considered the leader of clean energy transition in Southeast Asia, according to an Indian research intern at the Southeast Asia and Oceania Centre under the Manohar Parrikar Institute for Defence Studies and Analyses (MP-IDSA), India.
In his article “Clean energy transitions in Vietnam: Opportunities and Challenges” recently published on the IDSA website, Shubham Rai said Vietnam boasts Southeast Asia's largest installed solar and wind power capacity, having surpassed Thailand in 2019.
Vietnam has increased its solar and wind capacities in the past four years, with the share of solar power in electricity generation rising from practically nothing four years ago to 11% in 2021.
The nation's overall solar power capacity reached 16,500MW by 2020, much higher than its official target of 850MW. It has become the 10th biggest solar power generator in the world.
While solar power has experienced the most significant growth, installed wind power capacity has also increased rapidly, reaching 600MW by the end of 2020, placing it second to Thailand among Southeast Asian nations. The country has huge potential for hydropower, which currently makes up 33% of the total energy generation.
Many houses in Ho Chi Minh City have also installed solar power systems. (Photo: VietnamPlus)
According to the author, the Vietnamese Government has implemented various plans and policies to accelerate the clean energy transition. Among the most notable policy incentives are the National Development Strategy, Feed-in Tariff (FiT) scheme, and the National Power Development Plans.
The National Power Development Plans, the country’s primary energy outlook published once in a decade, outline how the country will generate energy. The recent plan, which came in 2021 and applicable till 2030, is prioritising the growth of renewables, particularly offshore wind energy. It provides a list of incentives to enhance clean energy transition, like tax exemptions on raw material imports, equipment, and finished clean energy products. Furthermore, it also lowers the interest rates for lending and investments in the renewable energy sector.
Other major policy incentives include the waiving or lowering of tax on leasing and land use for solar and wind projects. Tariffs on imports required as inputs for installing solar power plants are also exempted.
Last December, Vietnam established a 15.5 billion USD Just Energy Transition Partnership with foreign partners, including the UK, the US, the EU, and Japan. The partnership aims to hasten the reduction of carbon emissions and boost the use of renewable energy.
Under the Just Energy Transition Partnership Plan, Vietnam is expected to achieve peak emissions in 2030 and net zero emissions by 2050, with the aim to generate 60GW of renewable energy in 2030.
However, Vietnam’s energy systems are also frequently challenged by climatic hazards like typhoons and floods. In the past decade, Vietnam transitioned from an energy exporter to an importer, creating concerns for its energy security. For Vietnam to continue to lead Southeast Asia in sustainable energy, it must tackle these challenges effectively.
Vietnam has become the 10th largest solar power producer in the world. (Photo: VietnamPlus)
National Power Development Plan VIII guides the development of power plants and grids between 2021 and 2030, with a vision until 2050.
The plan aims to maintain Vietnam's energy security by ensuring a sufficient supply of electricity to fuel a projected annual GDP growth rate of 7.0% during the period.
It also aims to get Vietnam into the top four countries in ASEAN in terms of power reliability. Additionally, half of the office buildings and homes in the country will be powered by rooftop solar panels by 2030.
Regarding the just energy transition, the plan strives to increase the share of renewable energy in the country's power mix to between 67.5-71.5 % by 2050.
It also seeks to generate green energy for export, with a target of between 5-10 GW by 2030. Energy-related greenhouse gas emissions will be cut to around 27 and 31 million tonnes./.
