Electricity demand in VN rises faster than GDP growth

Statistics show that the rise in demand for energy in Vietnam is double the country’s gross domestic product (GDP) growth rate, participants heard at a workshop in Hanoi City on March 12.


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A worker monitors an electricity production system at the Dong Nai Hydropower Plant in the Central Highland province of Lam Dong. The Government has offered a slew of incentives and preferential policies to investors to boost investments in the development of renewable energy


Speaking at the International Workshop co-organized by the Vietnam Energy Association and the UK Embassy on renewable energy development in Vietnam, Deputy Minister of Industry and Trade Cao Quoc Hung said that along with the significant economic growth, the demand for energy in the country rose by over 13% in the 2006-2010 period and by 11% in the 2011-2016 period. The demand surged by 10% in 2018.

“The high demand for electricity has put power generation and investment under pressure,” Hung said.

According to the national energy development plan approved by the Government, the national power capacity will amount to 130,000 megawatts (MW) in 2030, while the current figure is 47,000MW.

As such, developing renewable energy is one of Vietnam's priorities to reduce the dependence on traditional forms of power generation in order to diversify energy sources, protect the environment and foster the sustainable development of the country and region, Hung stressed.

With the high potential of renewable energy resources, by 2030, Vietnam will be able to generate some 8,000MW of hydropower, 20,000MW of wind power, 3,000MW of biomass power and 35,000MW of solar power.

Electricity generated from renewable energy sources is projected to leap to 101 billion kWh in 2020, 186 billion kWh in 2030 and 452 billion kWh in 2050 from 58 billion kWh in 2015, according to the 2015-2030 renewable energy development strategy.

Hung said to shore up the development of renewable energy, the Ministry of Industry and Trade has introduced and submitted to the Government a set of mechanisms to develop solar and wind power.

Additionally, the Government has offered a slew of incentives and preferential policies to investors to boost investments in the field. As such, by the end of 2018, the country put into service 285 small hydropower plants, eight wind power facilities and 10 biomass power plants, with a combined capacity of each category reaching 3,322MW, 243W and 212MW, respectively, he added.

However, the development of renewable power has been facing multiple challenges and obstacles over the past few years, including high investment fees, low output, poor infrastructure and the lack of sites for power projects.

“It is necessary to map out a program to remove these bottlenecks in the future,” Hung said.

Addressing the workshop, British Ambassador to Vietnam Gareth Ward said that the UK is one of the top wind power countries in the world, having over seven gigawatts of operational offshore wind capacity, the largest amount in the global market.

“I strongly believe that the workshop will offer the UK a chance to closely collaborate with Vietnam and support the country in its switch to the use of renewable energy in the future,” Gareth said.

Within the framework of the workshop, a delegation of 30 UK firms operating in renewable energy and green finance industries exchanged information and experience with Vietnamese enterprises over reducing the amount of carbon.

SGT

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