Brian Jeffrey
During a meeting on February 12 about updating Vietnam’s National Power Development Plan (PDP VIII) for 2021-2030 with a look towards 2050, energy specialists highlighted the pressing need to expand the country’s electricity generation capacity.
Nguyen Anh Tuan, Secretary General of the Vietnam Energy Association, stated that Vietnam’s electricity demand is anticipated to rise between 10.3% and 12.5% from 2026 to 2030, fueled by rapid economic growth.
He underscored the necessity for regional preparedness to avert localized power deficiencies, especially as the nation invests in sustainable transportation systems like the North-South high-speed railway and metro networks.
Transitioning to renewable energy also brings its own set of challenges, particularly in overseeing decentralized solar and wind initiatives. To address the electricity demand, Vietnam will need around $30.7 to $40 billion in investments by 2030, primarily from private and non-state entities.
Reviving Nuclear Energy
Minister of Industry and Trade, Nguyen Hong Dien, announced that Vietnam plans to resume nuclear power development, with plans to extend beyond the initially designated Ninh Thuan site to at least three other locations.
He stated, “We are set to develop both large nuclear power stations and smaller modular reactors across the country,” highlighting the necessity for a varied energy approach.
Previously, in 2016, Vietnam halted its nuclear program due to financial issues. However, with increasing energy demands and limitations on renewable sources, nuclear energy is being reevaluated as a viable long-term option.
Addressing Regional Energy Disparities
Experts pointed out the existing disparity in energy distribution, where the northern region struggles with shortages while central Vietnam has an excess.
Tuan noted that Germany successfully utilizes 96,000 MW of solar power with only 900 sunlight hours annually, compared to northern Vietnam that experiences up to 1,200 hours. He argued that with appropriate policies, northern Vietnam could enhance solar energy use and lessen reliance on other energy sources.
Developing a Competitive Energy Landscape
Minister Nguyen Hong Dien accentuated the need for modernization of Vietnam’s electrical grid, advocating for the adoption of smart grid technologies as part of the updated PDP VIII.
He outlined the intention to create a competitive electricity market across three tiers: generation, wholesale, and retail, incorporating flexible pricing models that adjust to demand changes.
Moreover, the government is focused on decoupling transmission costs from general electricity prices to draw private investment in energy infrastructure, especially in cross-regional and intra-regional power transmission projects.
Tam An
