|At the press briefing
Presiding over a press briefing held on November 5 in Hanoi following the release of Vietnam Energy Outlook Report 2019 (EOR19), Morten Baek, Permanent Secretary at the Danish Ministry of Energy, Utilities and Climate noted that Vietnam should pursue and kick-start a roadmap for energy development at low-cost and sustainable manner with the aim of cutting down CO2 emissions.
Preliminary calculations indicate that Vietnam is able to cut down 39% per cent of its total CO2 emissions by 2050, equivalent to 370 million metric tons of CO2 emissions, Baek added.
Jakob Stenby Lundsager, long-term adviser of the Energy Partnership Program between Vietnam and Denmark under the Vietnamese Ministry of Industry and Trade, raised concerns about the fact that Vietnam has been using a large amount of coal for electricity generation. The halt of further investment in developing coal - fueled power plants could help Vietnam avoid adverse effects caused by coal-fired power and its heavy reliance on coal imports.
If Vietnam puts an end to the expansion of coal-fired power plants, its coal consumption is estimated to reduce by 221 million tons by 2050, says the EOR19.
Lundsager elaborated the limited use of coal for electricity generation would only yield a 2 - percent increase in the total cost for the nationwide energy system by 2030 and another 5 per cent by 2050, but it could in turn bring about a considerable drop of CO2 emissions and ease air pollution.
The expert also underscored the need for Vietnam to expand renewable energy in the long term. To make it more feasible, the Vietnamese government needs to ensure that the risks facing investors must be reduced and removed. Investors and energy developers attach importance to having a stable and transparent framework in order to ensure the long term target for renewable energy.
A stable subsidy scheme which would not be changing everyday could be sent to market players. It means that Vietnam should use a power purchase agreement (PPA) which is of international standards and useful. Lundsager also called for the shift from current feed-in tariff mechanism to auctioning of renewable energy.