Vietnam is shifting towards renewable energy. The country utilizes four main renewable energy sources: hydroelectricity, solar power, wind power, and biomass.
Having renewable sources that are readily available but also sufficient, Vietnam is well-positioned to meet its growing energy needs through alternative power. The energy transition opens up lucrative opportunities for investors, both local and foreign, energy developers, and tech companies.
An in-depth analysis from a Vietnam energy consulting can provide valuable insights into the country’s renewable energy market.
Vietnam Energy Consulting: An Overview
Vietnam’s economy is growing rapidly, and so is the country’s energy need. Left unaddressed, the rising energy demand will lead to severe power shortages. Vietnam’s gradual shift towards renewable energy has been reflected in the Master Plan for Power Development (PDP) in recent years.
The Vietnamese government has revised various laws, including the Law on Economical and Efficient Use of Energy and the Law on Electricity to attract and encourage the public to use renewable energy.
So far, the highest renewable energy share of Vietnam’s energy mix comes from hydropower, which accounts for 37% of the total mix and 30% in 2020.
Other renewable energies, including solar power, wind power, biomass, and small hydropower account for 16%. Fossil fuels contribute to around half of the power generation.
The Focus of Energy Transition
Vietnam’s current energy transition is focused on some key areas beyond renewable energy, which include battery storage systems and liquefied natural gas (LNG), among others.
LNG and battery storage systems can be connected to the country’s renewable energy to stabilize their connections to the national energy grid and reduce issues of curtailment and intermittency.
To meet its growing demand for power and shift towards renewable energy, Vietnam needs a huge amount of investment. By 2030, Vietnam will need a total investment of approx. USD 150 billion.
On one hand, the need for investment is one of the major hindrances in Vietnam’s renewable energy development. On the other, it opens up lucrative opportunities for not only local and foreign investors but also energy developers and tech companies.
For a long time, the Vietnam energy market is monopolized by Vietnam Electricity. With Resolution 55, private investment from the private sector is welcomed. The resolution paves the way for the private sector to participate in the electricity market.
Vietnam is in the middle of an energy transition. At the moment, Vietnam relies heavily on carbon-intensive energy, but steps have been made to gradually shift towards renewable energy. An in-depth analysis from a Vietnam energy consulting will be helpful to gain insights into Vietnam’s renewable energy market.