Hanoi forum seeks to develop energy industry, ensure energy security

Delegates looked at challenges to national energy security and clean energy transition, as well as solutions to energy development in Vietnam amid global market fluctuations at present and in future.

They also examined the trend of using liquefied natural gas (LNG) in the world and Vietnam, implementation of policies to attract investment into clean energy, potential for developing renewable energy, proposals to develop the energy industry, and policies to promote the restructuring of power sources in an appropriate direction towards ensuring national energy security.

In his opening remarks, VOV President Do Tien Sy noted that 2023 is considered an important milestone in Vietnam’s energy restructuring process, with green transition in the energy industry gradually becoming a mainstream trend and one of the top priorities to national development at present.

Vietnam has great potential for developing new sources of energy such as solar power, wind power, biomass power, ocean wave power and biogas, alongside available energy sources including liquefied natural gas, hydropower and coal-fired power, he said.

According to the official, to take full advantage of its inherent potential, the country urgently needs incentive policies to expand the renewable energy market, deploy new technologies, provide appropriate opportunities, and encourage the use of renewable energy in all important industries.

“Vietnam’s energy industry in recent years has developed strongly in all stages, from exploration, exploitation, production, transmission and distribution to import and export of energy, making an important contribution to national socio-economic development,” he said.

However, he pointed out “the scale and efficiency of the energy industry remains low as evidenced in the fact that energy security is not guaranteed, and the electrical load frequently exceeds peak demand during summertime. In addition, national oil reserves are not capable of stabilizing the domestic market in the event of a global oil price crisis.”

He expected that the forum gave policymakers and experts the chance to discuss and make recommendations to the government to develop the national energy industry, including new renewable energy sources, in a sustainable manner in future.

Taking the floor, Hoang Viet Dung from the Department of Energy Efficiency and Sustainable Development under the Ministry of Industry and Trade, shared a recent study on the use of energy in Vietnam.

According to the expert, domestic energy demand increased by about 10% annually in the 2001-2010 period, and about 7% between 2011 and 2019, while electricity demand grew by 13%/year in the 2001-2010 period and about 9.71%/year in the 2011-2021 period.

Greenhouse gas emissions from the energy industry accounted for about 63% of the country’s total greenhouse gas emissions in 2010 before rising to about 67.7% in 2020. The figure is expected to climb to about 73.1% and 79.7% in 2030 and 2050 respectively according to the business-as-usual scenario.

In his analysis, primary energy sources will not be able to meet the energy consumption needs of the economy in the future, and Vietnam will have to import primary energy to support socio-economic development.

He therefore stressed the need to review, build and perfect mechanisms, policies as well as technical and financial support to promote investment and production projects on economical and efficient use of energy.

In particular, Vietnam should also build energy data centers, and apply information technology on energy and efficient use of energy, he suggested.