The industrial base of Vietnam is experiencing rapid growth, so much so that the country’s energy demand is projected to increase by 8% by 2023. Although Vietnam relies mostly on carbon-intensive energy sources such as coal, steps have been taken toward renewable energy.
Vietnam renewable energy sources include hydropower, solar power, wind power, and biomass. These renewable energy sources are not only readily available but also sufficient to meet the country’s increasing energy needs, giving Vietnam a good position for an energy transition.
Vietnam energy market research can help you understand the sector better.
Vietnam Energy Market Research: Overview
Vietnam is in the middle of an energy transition. At the moment, fossil fuels contribute to about half of the energy generation mix in Vietnam.
Hydropower comes as the second largest contributor, accounting for 37% in 2019 and 30% in 2020. The remaining 16% comes from solar power, wind power, biomass, and small hydropower.
Things will soon change, however. Vietnam aims to increase renewable energy share to 15-20% by 2030 and to 25-30% by 2045 and diversify its energy mix to ensure energy security in the long term.
The current energy transition in Vietnam is focused on several main areas beyond renewable energy. These areas include battery storage systems and Liquified Natural Gas (LNG).
Both battery storage systems and LNG can be connected to renewable energy sources to stabilize their connections to the national energy grid and reduce curtailment and intermittency issues.
Private Sector Participation
The Vietnam government understands well that to meet its energy demand, the country requires a massive amount of investment. By 2030, it is projected that the country will need a total investment of USD 150 billion to meet such demand.
This understanding is reflected in Resolution 55, which not only highlights but also paves the way for the participation of the private sector in Vietnam’s electricity market. Previously, the market is dominated by Vietnam Electricity.
With Resolution 55, Vietnam aims to create an open investment regime that ensures the progress of the country’s power projects. The main goal is to ensure an energy supply that is not only sufficient but also secure and sustainable and is available at reasonable price.
As the Vietnam government encourages the involvement of the private sector, there are exciting opportunities for investors, both local and foreign, energy developers, and tech companies to participate in the country’s energy sector.
Vietnam is moving towards renewable energy. With Resolution 55, the country welcomes the participation of the private sector with an open hand.
This presents exciting opportunities for local and foreign key players. Vietnam energy market research can give you further insights into Vietnam renewable energy.