Why is Vietnam revising its long-term power development plan?

Vietnam is revising their long-term power development plan less than two years after its release, as previous capacity expansion targets have become unrealistic. The urgency to fill immediate supply gaps leaves planners with limited options: a razor-sharp focus on renewables, battery storage, and electricity imports from now until 2030.

How long will Vietnam's master power development plan last?

Vietnam’s energy planners have gone back to the drawing board, revising the country’s master power development plan, PDP8. Released in 2023, it was meant to last at least five years, laying out the national power system blueprint up to 2030. However, the core targets have quickly proven to be unattainable.

Are battery energy storage systems economically feasible in Vietnam?

However, in Vietnam, there is a widely held industry perception that Battery Energy Storage Systems (BESS) are not economically feasible at this moment, while the country's first pumped storage hydropower (PSH) project Bac Ai with a capacity of 1,200 MW will not be commissioned until 20289.

How will Vietnam's new energy plan impact its future?

Notably, the amended plan significantly increases the share of renewable energy in Vietnam’s power mix, prioritizing solar and wind, and for the first time, incorporating nuclear power—further reinforcing Vietnam’s continued commitments to its net-zero emissions targets by 2050.

Can solar and wind power meet Vietnam's near-term energy needs?

Such financial hurdles have challenged the government’s ability to use fossil fuels to expand electricity supply in step with Vietnam’s fast-growing economy. Contrastingly, solar and wind power’s lower capital requirements and faster development timelines are well-suited to meeting Vietnam’s near-term energy needs.

How is Vietnam promoting renewables?

Vietnam has initiated steps to promote renewables through the implementation of feed-in tariffs for utility-scale solar, rooftop solar, and onshore wind since 2017. These measures have exceeded expectations, leading to the deployment of 16.5 GW of solar capacity in just two years (2019- 2020).