The Electricity of Vietnam (EVN) will invest more in clean energy in the years ahead to meet the rising demand for power in national development.
The group has submitted to the Government its proposal on mechanisms to encourage the development of renewable energy such as wind and solar power along with storage systems.
EVN expects to put into operation around 5,500 MW of electricity from renewables, with 4,000 MW from wind power and 1.500 MW from solar power by 2025, to prevent a shortage of power, especially in northern localities.
The group has also asked the Government for permission to develop offshore wind power in the northern region to increase electricity supply for the region and ensure national power security.
Those proposals by EVN are in line with the Party and Government’s policy on encouraging the development of renewables and delivering on Vietnam’s commitment at the COP26.
Electricity demand is surging in the context of Vietnam making all-out efforts for socio-economic recovery after the COVID-19 pandemic is put under control.
According to the power development plan in 2022, EVN can ensure sufficient power supply for the central and southern regions. The northern region may face a shortage at some points of time, particularly during severe heat waves.
The northern region accounts for nearly 50% of the national power demand, and the region’s demand is also expected to increase at a rate higher than the national average.
Meanwhile, there are few new generation sources scheduled to be put into operation in the north this year, while electricity transmission from the central and southern regions is constrained by limited capacity of the transmission network.
To make it worse, coal supply for electricity generation is facing various difficulties.
To help with the development of renewables and implement Vietnam’s COP26 commitment, EVN is pushing ahead cooperation with foreign partners.
During a working trip to the US last mid-May, Chairman of EVN’s Member Board Duong Quang Thanh held a working session with Regional Director of the World Bank's Infrastructure Department in the East Asia and Pacific region Ranjit Lamech and WB Country Director for Vietnam Carolyn Turk on collaboration in developing clean energy.
The two sides discussed possibilities of partnership in developing offshore wind power, and considered the use of LNG for the Quang Trach II thermal power plant, and electricity transmission grids integrated with renewables in the future.
In March this year, during a meeting with Norwegian Ambassador Grete Lochen and Finnish Ambassador Keijo Norvanto, EVN General Director Tran Dinh Nhan stressed that Vietnam needs support and assistance from countries and international financial organisations in transforming to a suitable energy structure.
Ambassasor Lochen appreciated Vietnam’s commitment to achieving net zero emissions by 2050 at COP26. She said Norway will prioritise cooperation with Vietnam in developing renewables, including solar power and offshore wind power. The Norway Government will provide financial support for renewable development in Vietnam, she said.
The Finnish Ambassador also afirmed that Finland is ready to provide all possible support, including financial, for Vietnam in energy transition and realising its COP26 commitment.
Nhan informed the diplomats that renewable energy in Vietnam has developed strongly over the past three years, with total power from those sources now topping 21,000 MW, accounting for one third of the national power capacity. However, most renewable electricity generation sources are concentrated in the southern region, posing challenges to power distribution.