Vietnam needs an additional 56 GW of renewable energy by 2030 to reach net zero: report

Vietnam needs to produce an additional 56 gigawatts of renewable energy by 2030 to meet its net-zero emissions commitment 20 years later as the country phases out coal use, according to a report backed by the Danish government.

That total will include 17 GW of onshore wind and 39 GW of solar, according to “Pathways to Net Zero,” the fourth biennial edition of the Vietnam Energy Outlook Report released Wednesday.

With enormous potential for solar energy and onshore and offshore wind energy, Vietnam is well-positioned to transition from fossil to renewable energy. The report shows that the country can effectively and cost-effectively implement the green transition and achieve the net zero emissions target by 2050 by developing renewable energy sources, electrifying industry and transport.

The authors warn that any delays in the green transition will lead to unnecessary costs due to the increasingly serious effects of climate change.

“To reach peak CO2 emissions by 2030, new generation capacity in the energy sector should come primarily from solar and wind energy before 2030,” he notes, arguing that renewable energy sources will soon be cheaper than fossil fuels around the world and soon it will also be possible in Vietnam.

To ensure the energy transition, the report calls for a stable investment climate before 2030 and support for early investments in renewable energy, with a particular focus on improving the regulatory framework.

For Vietnam to achieve its ambitious goal of developing 84 GW of offshore wind capacity by 2050 in a net-zero emissions scenario, Vietnam needs to issue a clear and predictable legal framework to attract large investments in this industry. The government can start by identifying the location of offshore wind installations, preparing port infrastructure and improving the transmission network.

They also recommend that coal-fired power plants in a country that is highly vulnerable to climate change should be more flexible so that they can reduce their production capacity and prioritize greener energy sources, while also providing a primary backup source when storage solutions are deployed. .

Moreover, LNG can play a key role in increasing production capacity by 2050, but this form of energy is sensitive to higher prices.

They claim that co-combustion of hydrogen, ammonia or biomass and carbon capture and storage (CCS) in power plants is not profitable.

They recommend examining the role of nuclear energy in a system with a high share of renewable energy and further exploring the potential for land use for onshore wind and solar energy. Additionally, it is recommended to develop standards and regulations to promote the connection of rooftop solar energy to the grid.

On the occasion of the report’s launch, Danish Ambassador to Vietnam Nicolai Prytz called on Vietnam to take swift, decisive and sustainable action to achieve its net zero emissions target. This will be crucial not only in dealing with rising energy demand, but also in helping to attract more foreign direct investment as access to renewable energy sources becomes more important in investment decisions.

Denmark is committed to supporting Vietnam in this green transition, the diplomat confirmed.