In a significant move to bolster its power infrastructure, Vietnam's Prime Minister has given the green light to a comprehensive power plan that requires a staggering $134.7 billion of investment between 2021 and 2030, as confirmed by the Ministry of Industry and Trade. Referred to as PDP8, this ambitious initiative aims to ensure the country's energy security, aligning with an anticipated annual gross domestic product (GDP) growth rate of 7 percent during the specified period.
The Ministry of Industry and Trade stated that by 2030, approximately 50 percent of Vietnam's office buildings and residential homes will be powered by rooftop solar panels. Additionally, the nation has set its sights on producing environmentally friendly energy for export, with a targeted capacity of 5-10 gigawatts (GW) by 2030.
While the official statement from the ministry lacked comprehensive details of the plan, a draft of PDP8 obtained by Reuters sheds light on the immense scale of the undertaking. According to the draft, Vietnam aims to more than double its power generation capacity from 69 GW in 2020 to an impressive 158 GW by 2030.
To achieve this, the draft outlines that power plants utilizing domestic gas and imported liquefied natural gas (LNG) will form the primary source of Vietnam's power generation mix by 2030, contributing 37.33 GW, equivalent to 23.6 percent, of the total capacity.
Furthermore, the draft highlights that coal is projected to account for 19 percent of the power generation mix by 2030. Following closely, hydropower will represent 18.5 percent, wind energy 17.6 percent, and solar power 13.0 percent. It is worth noting that the draft stipulates the country's intention to phase out coal as a power generation source by 2050, signaling a long-term commitment to cleaner energy alternatives.
Despite the draft providing insightful details, the Ministry of Industry and Trade refrained from commenting on its content when requested to do so.
Vietnam's power plan signifies a bold step towards fortifying its energy infrastructure and supporting the nation's economic growth. With a significant focus on renewable energy sources, such as solar and wind power, Vietnam is poised to transition to a greener and more sustainable future. The successful implementation of PDP8 will undoubtedly contribute to the country's energy independence and foster its position as a key player in the Southeast Asian region.
