Vietnam, one of world’s most populous countries, has experienced a rapid economic growth in the past decade, leading to higher and higher energy demand. However, most of the country’s electricity output comes from coal, which creates huge greenhouse gases (GHGs) emissions and environmental damage. To tackle the challenge of climate change, the Government has passed a Power Development Plan (PDP) to make long-term plans for the power sector. This case study describes the revised plan (RPDPVII), including its objectives, limitations and the implementation efforts.
Vietnam's National Power Development Plan is a good practice because it proposes expanding generating capacity to meet forecast power demand while addressing the mix of power generation sources, investment and fuel costs, social and environmental impacts, the reliability of power supplies, and the effects of climate change. It reduces the impacts on the environment without compromising the technical and financial viability of the proposed expansion. If the goals are achieved, Vietnam will reduce GHG emissions by more than 100 million tons of CO2 equivalent a year by 2030 (to 335.9 thousand tons), reduce energy use by 10 percent by 2030, increase power generation of renewable energy to 21 percent of the power generation mixture, and reduce coal-fired power generation to less than 45 percent of the generation mix.
Key findings from the case study include:
- Despite the reduction in coal-fired power generation, growth in power generation from all sources combined has met the increased electricity demand.
- The share of renewable power sources, especially solar power, has increased significantly. The share is much higher than in the RPDPVII target.
- The power sector is attempting to increase energy efficiency and conservation.
- Specifying and allocating investment capital appropriately and paying attention to the private investment source has allowed for the rapid growth of energy infrastructure.
- Energy saving, efficient usage, and environmental protection measures have been managed in a uniform and efficient, step-by-step manner.