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Vietnam’s Renewable Energy Development is key to Meet its Rising Electricity Demand

Posted on : 14 Sep, 2017

 

Asia’s renewable energy sector is opening up to new investments – especially in the current attractive market – Vietnam. It is estimated that Vietnam’s demand for electricity will increase to 265 billion kWh by 2020 and 570 billion kWh by 2030 compared to the current 170 billion kWh.

To meet such demand, Vietnam has to exploit its renewable energy sources. The Government is already keen at increasing renewable energy power and aiming to produce 12 billion kWh of renewable energy by 2020 – with further target of 89 billion kWh by 2030.

Some of the industry experts are also of the opinion that Vietnam should look at neighbouring countries to meet a portion of its electricity needs. China, Laos and Cambodia can possibly offset Vietnam’s shortfall of 100 billion kWh by 2020.

Currently, Vietnam is primarily sourcing its power from hydropower, coal-fired thermal power and gas. However, the country also needs to develop wind, solar, and biomass power – that currently have modest capacities of around 100 MW, 15 MW and 10 MW respectively.

Investments in the renewable energy sector in Vietnam is one of the key to its success. To attract investments local governments should create favorable conditions for investors as well as make land allocation for power generation facilities. What is also important is electricity price regulation. Some analysts advise prices of wind and biomass power to be raised to about 9 cents per kWh to ensure that investors can recoup their investment capital.

For more information on Vietnam’s renewable energy market, attend CMT’s Asia Renewables – Vietnam Renewable Power on 18-19 Jan, 2018 – in Ho Chi Minh City, Vietnam.

Contact Ms. Huiyan at huiyan@cmtsp.com.sg or call +65 6346 9113 for information.

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