Hanoi (VNA)🍌 – Power Development Plan VIII plans to phase out coal-fired power plants to curb CO2 emissions, with no more new plants after 2030, according to a seminar held by the Ministry of Industry and Trade (MoIT) in Hanoi on June 22. 

Supply of fossil fuel under pressure

Dr Nguyen Ngoc Hung from the MoIT’s Institute of Energy said apart from advantages, Vietnam must take measures to deal with difficulties in ensuring energy security. It must also minimise environment impact on power development and pressure on infrastructure of the energy sector. This requires huge investment capital and complex technical solutions. According to him, the domestic supply of energy has been increasingly limited and capital demand for energy development has grown. The use of oil and coal will decrease while that of gas and non-carbon energy will surge. These impacts will be felt in the gas industry, bio-fuel in transport, and biomass in energy development and industries. Wind and solar power will have a very high proportion in the total primary energy supply. In particular, the international energy market remains unstable in terms of supply and energy prices stay highly volatile due to geopolitical factors and political conflicts. At home, the energy sector has a limited technological capacity, technical infrastructure as well as repair and maintenance services. The legal corridor for the effective use of energy, new and renewable energy is yet complete and concerted. Statistics from the MoIT showed that during the 2011-2020 period, Vietnam’s commercial electricity expanded by 9.6% annually on average. It is expected to reach 8.52% from 2021-2030 in a basic scenario and 9.36% in a high scenario.

Toward green, clean energy

By the late 2021, Vietnam’s electricity capacity reached nearly 76,620 MW, of which hydropower was 22,111 MW, coal-fired power 25,397MW, gas power 7,398MW, and renewable energy about 21,100 MW. The Vietnam Energy Outlook Report 2021 showed that the supply of energy will double by 2030 and nearly quadruple by 2050. The wind, solar and hydropower will account for some 75% of the total supply by 2050 while coal will be removed. Electrification for all sectors will also be planned.   Director of the Electricity and Renewable Energy Authority Hoang Tien Dung said to achieve a green and sustainable economy in adaptation with climate change, Vietnam has issued a number of policies to reach sustainable energy transition. This is in line with strategic orientations in accordance with the Politburo’s Resolution 55 and the Government’s commitment to reducing greenhouse emission to zero by 2050. The MoIT has built and carried out schemes and stepped up the application of modern technology to effectively use energy, protect natural resources and environment, and enhance international cooperation via bilateral and multilateral meetings, Dung said.

Notably in the draft Power Development Plan VIII, the MoIT studied the development of an electricity system in green and sustainable manner in line with commitments at the 26^th🅘 United Nations Climate Change Conference of the Parties (COP26).

Specifically, domestic primary energy will be fully and reasonably tapped for power production. Coal-fired power plants will be minimised and new coal-fired power plants will not be built after 2030. Several kinds of energy in the coal use plan will switch to the use of liquefied natural gas. Coal-fired and gas thermal power plants will use more biomass, ammoniac or hydrogen when technologies are certified and commercialised. Dung affirmed that Vietnam is taking initial steps to switch from traditional energy to greener and cleaner energy. This is also an inevitable trend to ensure a sustainable economy. Vietnam has so far achieved certain results in increasing the rate of renewable energy. It has also come up with plans for energy development with less emission and energy transition in the near future, he added. Sean Lawlor, energy expert from the US Embassy in Vietnam, also hinted at a new economy with better resilience to achieve goals at the COP26. As Vietnam is facing challenges in power transmission infrastructure, he emphasised that the US will help Vietnam improve system transmission to reduce overload and upgrade the 500kV North-South line. He also suggested authorities enhance the role of the private sector in power development. Lawlor added that the US takes a multilateral approach to working closely with Vietnam and fully backs bilateral partnership with Australia and Japan to support energy transition./.