Due to Vietnam’s industrialization and integration, the growth in electricity demand has been increasing at an enormous rate. With a population of over 90 million people and an average annual GDP growth rate of 6.9%, in order to ensure sustainable growth, Vietnam has increased its energy demand by 10% during the past 10 years, and is expecting to continue to do so by another 400% over the next 20 years. Electricity consumption accounts for the majority of the energy demand and is expected to increase at an even faster rate, by 600%, over the next 20 years.
One-third of Vietnam’s power supply is currently generated by hydro energy, another one-third comes from gas, and the remaining stems from either coal or energy imports. To ensure a stable energy supply to the domestic market, the government plans to operate its first nuclear plant by 2020. According to the General Department of Energy, the electricity output in 2015 ranges from 194 to 210 billion kWh. The output is estimated to increase to 330 — 362 billion kWh in 2020, and to 695 — 834 billion kWh in 2030. Furthermore, the government has issued a Clean Energy Development Plan, according to which the carbon dioxide emissions in all energy operations should be cut down by 10% to 20% until 2020, and by 20% to 30% until 2030.
To meet the thriving demand, Vietnam has begun primary reforms in the energy field by opening up the sector and promoting private investment. However, the retail price of electricity and the power purchase agreements with EVN (Electricity of Vietnam, a state-owned utility) are still considered the main obstacles to foreign investors. Foreign investments are especially needed in the field of Renewable Energy and Energy Efficiency, where the objective is to increase the proportion of Renewable Energy to 4.5% by 2020 and 6% by 2030. Vietnam, therefore, has great potential for the development of Clean Technologies, ranging from sources of renewable energy to waste treatment and energy efficiency.
Source: PR Newswire
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