Vietnam needs US$128.3 billion to develop electricity industry

Vietnam needs about US$128.3 billion of investment capital to develop its electricity industry in 2021-2030, according to draft electricity planning released by the Ministry of Industry and Trade (MoIT).

On February 9, the MoIT issued a draft national electricity development planning project for 2021-2030, with a vision to 2045 or the power master plan VIII and asked other ministries and agencies to contribute their ideas.

With forecasts that Vietnam's GDP growth will reach an average of 6.6% per year in 2031-2045 and 5.7% per year in 2031-2045, the MoIT forecast the supply of commercial electricity to reach 491 billion kWh by 2030, and 877 billion kWh by 2045. 

The draft expected by 2030, the total installed capacity of electricity sources in the country would reach 137.2 GW including 27% from coal-fired thermal power, 21% from gas thermal power, 18% from hydroelectricity, 29% from wind power, solar and renewable energy and 4% from the imported sources and 1% from other types of energy from storage devices.

The MoIT’s draft said by 2045, the total installed capacity will reach nearly 276.7 GW including 18% from coal-fired thermal power, 24% from gas thermal power, 9% from hydroelectricity, 44% from wind power, solar and renewable energy and 2% from the imported sources and 3% from other types of energy from storage devices.

The power master plan VIII encourages the development of renewable energy and discourages hydroelectricity. Renewables made up 13% of power in 2020 and are aimed to make up 30% by 2030 and 44% by 2045.

Regarding the power grid development programme, the plan proposes to continue building the 500kV power transmission system to transmit electricity from major power source centres in the Central Highlands, south-central, north-central and central regions to the large load centres in Ho Chi Minh City and the Red River Delta. It also asked to strengthen the interconnected transmission grid to support the transmission of power capacity.

In the draft, they also research the application of smart grid and the 4.0 technology in power transmission to calculate and propose in the master plan.

The MoIT calculated total investment capital for electricity development in 2021-2030 of about US$128.3 billion including US$95.4 billion for electricity and US$32.9 billion for the grid.

For the next 15 years, the ministry calculated the need at about US$192.3 billion including US$140.2 billion for electricity and US$52.1 billion for the grid.

Combining the two periods, Vietnam needs US$320.6 billion to develop its national power system.