Vietnam needs up to $14 billion annually in power investments

The Phu My power plant complex, Vietnam’s largest source of electricity Energy-hungry Vietnam will need investments of between $8 billion and $14 billion a year up to 2030 to develop new power plants and expand its grid, the country’s deputy minister of industry and trade, Dang Hoang An, said, according to Reuters. Of the amount, 75 per cent should be spent on new power plants, with priority given to renewable sources, and 25 per cent on grid expansion, the minister said. The money for the new power projects would preferably be raised from private investors, he…

Energy-hungry Vietnam will need investments of between $8 billion and $14 billion a year up to 2030 to develop new power plants and expand its grid, the country’s deputy minister of industry and trade, Dang Hoang An, said, according to Reuters.

Of the amount, 75 per cent should be spent on new power plants, with priority given to renewable sources, and 25 per cent on grid expansion, the minister said.

The money for the new power projects would preferably be raised from private investors, he added.

Vietnam is in dire need to expand its power generating and distribution facilities to support its fast-growing economy and population. As a regional manufacturing and assembling hub, the country needs to increase its installed power generation capacity by around ten per cent every year.

Focus on offshore wind power

However, Vietnam plans to walk the sustainable road in generating more power.

“Vietnam will not add new coal-fired power plants to its master power development plan and will only continue coal projects that are under construction until 2030,” An said.

Vietnam pledged last year to become carbon-neutral by 2050 and plans to raise its offshore wind power capacity to seven gigawatts by 2030 and to 65 gigawatts by 2045, while cutting the proportion of coal in its energy mix.

Fewer coal power plants

The ministry last month asked the government to remove future coal projects with a combined capacity of 14.12 gigawatts from the master power development plan which is currently being drafted.

Under the plans’ latest draft, Vietnam’s total installed power generation capacity would be raised to 121 gigawatts by 2030 and to 284 gigawatts by 2045, from 76.6 gigawatts at the end of last year, the report said.