Renewables in Vietnam: Current Opportunities and Future Outlook

Vietnam is one of the most efficient power market in Southeast Asia, driven by low-cost resources such as hydro and coal. The country has achieved almost 99 percent electrification with relatively low cost in comparison to neighboring countries, leading it to be a net energy exporter. With energy demand projected to increase by more than 10 percent annually in the next five years and required power capacity to double; the government is moving forward to develop the renewable energy sources to ensure energy security and addressing the growing power demand.

Current supply and future demand

Supply

Energy sources are diverse in Vietnam, ranging from coal, oil, natural gas, hydropower, and renewable energy. According to the 2016 Vietnam Electricity Annual Report, hydropower and coal fired power led amongst the power generation sources. Renewable energy, which includes wind, biomass, and solar accounted for less than half a percent of power generated in the country.

Demand

With growing industrialization and modernizing of the economy, energy demand is predicted to increase by over 10 percent annually during 2016-2020 and by eight percent per annum during 2021-2030. Electricity consumption is projected to increase four-fold by 2030 compared to 2014.