Vietnam shifts energy focus to solar power amid coal reliance

Vietnam is revising its energy plans to reduce its dependency on coal and natural gas while increasing its solar energy capacity. The nation, experiencing rapid economic growth, aims to generate 16% of its energy from solar power by 2030, significantly up from a previous target of just 5%. In a draft policy likely to be finalized soon, plans to develop offshore wind turbines have been abandoned due to high costs and challenges in implementation. Instead, Vietnam will focus on expanding onshore wind and rooftop solar installations, alongside energy storage solutions. The need for this energy transition is driven by a forecasted demand for over 211 gigawatts of energy by 2030—40% more than earlier estimates. This magnitude of energy need is greater than Germany's current total capacity, highlighting Vietnam's rapid economic development. Giles Cooper, an energy policy specialist, indicated that the reliance on liquefied natural gas (LNG) is not proceeding as planned, necessitating a shift toward more viable renewable energy sources like solar. From 2018 to 2020, Vietnam witnessed a surge in solar energy installations, aided by favorable government policies that helped it surpass its regional neighbors and some developed countries in solar capacity. However, the country's rapid adoption of solar power faced challenges when the electricity grid became overloaded. Electricity production dependent on daylight led to gaps in supply, prompting authorities to allow energy-intensive factories to purchase power directly from producers to alleviate grid pressure. Despite these efforts, Vietnam remains the second-largest coal producer in Southeast Asia, with a notable increase in coal imports in early 2024. The coal-fired power plants currently in operation have not yet recouped their investments, suggesting that a complete transition away from coal for the nation will require significant time and resource management. As such, while Vietnam is making strides in solar power and energy generation diversification, the ongoing reliance on coal reflects the complexities in balancing immediate energy needs with long-term sustainability goals.