Vietnam Increases Focus on Renewable Energy Sources

Officials from the government are encouraging more foreign investment in the renewable energy sector.

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Vietnam Puts Higher Emphasis on Renewable Energy
Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan received Laura Lochman, deputy assistant secretary for Energy Diplomacy. Photo: tapchicongthuong

The 13th APEC Energy Ministerial Meeting (EMM 13) is the first APEC meeting to be held after an 8-year hiatus (since 2015 in the Philippines).

The partners took this opportunity to meet Vietnam’s Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan to discuss the objectives and implementation plan of the national power development plan for the period of 2021-2030, with a vision to 2050 (Vietnam’s Eight National Power Development Plan).

They seek opportunities for investment cooperation and technical assistance to promote the development of renewable energy in Vietnam.

Sharing with partners, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan emphasized that the Vietnamese Government and the Ministry of Industry and Trade always welcome, encourage, and create conditions for all foreign investors to participate in renewable energy development projects, cooperate in technology transfer to use energy and fuel efficiently in Vietnam.

Some areas Vietnam wishes to attract investment in renewable energy development include cooperation in research energy science and technology, developing smart grids, and technological solutions for economical and efficient use of energy.

Vietnam Puts Higher Emphasis on Renewable Energy
Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan received Tan See Leng, minister for Manpower and second minister for Trade and Industry. Photo: tapchicongthuong

Regarding the concerns of partners about the implementation plan of Vietnam’s Eight National Power Development Plan, the Deputy Minister said that after the Prime Minister signed and promulgated Decision 500/QD-TTg dated May 15, 2023, approving the plan, the Ministry of Industry and Trade organized the implementation plan. It is expected that by the end of August, the Ministry of Industry and Trade will submit this plan to the Government for approval.

Accordingly, the goal of developing electricity from renewable energy will reach a rate of about 30.9-39.2% by 2030, with a vision to 2050, the rate of renewable energy will be up to 67.5-71.5%.

Regarding specific power development plans, by 2030, onshore wind power capacity will reach 21,880 MW, with a vision to reach 60,050-77,050 MW by 2050.

Offshore wind power capacity is about 6,000 MW, with a vision to reach 70,000-91,500 MW by 2050, and solar power capacity to reach 20,591 MW by 2030, with a vision to 2050, the total capacity will reach about 168,594-189,294 MW.

Vietnam Puts Higher Emphasis on Renewable Energy
Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan received Melanie Nakagawa, Microsoft’s chief sustainability officer. Photo: tapchicongthuong

Besides the contents related to the power plan, at the bilateral meeting, the partners also expressed their interest in the draft of Vietnam’s Direct Power Purchase Agreement (DPPA).

Deputy Minister Nguyen Sinh Nhat Tan shared the process of researching and developing the DPPA mechanism based on the report of international consultants combined with meeting the criteria.

The criteria are both to ensure the feasibility of operating the power system and to be consistent with the design of the electricity market in Vietnam, synchronizing with the Law on Prices (amended) just passed by the National Assembly of Vietnam on June 19, 2023.

Vietnam Puts Higher Emphasis on Renewable Energy
At the meeting, the partners also expressed their interest in the draft of Vietnam’s Direct Power Purchase Agreement (DPPA). Photo: tapchicongthuong

Currently, the Ministry of Industry and Trade is continuing to consult with domestic as well as foreign investors, in order to soon complete the development of the DPPA mechanism, contributing to attracting investment capital in the development of renewable energy.

Rosie Nguyen