Vietnam's energy transition faces challenges

Vietnam's energy transition faces challenges, especially since the transition is expected ensure energy security, power supply and reasonable costs.

Vu Chi Mai, a German Agency for International Cooperation expert (GIZ), stated that Vietnam has developed solar and wind power sources quickly thanks to its incentive mechanisms. This has allowed Vietnam to increase the percentage of renewable energy to almost one-third of its installed capacity.

The transmission system is often at its maximum capacity, so it is difficult to bring these energies to the national grid. Vietnam must also invest in more stable, flexible power sources to increase the availability of clean power sources like pumped hydropower storage and storage systems for solar power plant. Another challenge is the huge shift in energy sources from gasoline, coal, and natural gas to electricity. It will reduce greenhouse gas emissions, which is a positive aspect. However, this creates a lot of pressure on the electricity sector, both in operation management as well as in the coordinated development of the energy efficient power system.

Expert in energy, Nguyen Anh Tian, said that Vietnam is going through a strong energy transition. He also mentioned that Vietnam is using solar power and wind power, which are unpredictable sources because they depend on weather conditions and locations that may not be available for power generation.

Managers and operators of power lines and systems will face challenges if their share in the country's electricity generation system is higher. To accelerate the transition to cleaner, greener energy, it is important to develop a forecasting tool that balances the demand and the generation capacity of renewable energy sources.

Tuan says that without careful calculations about the transition from fossil fuels into electricity in industries such as transportation and construction, there is a high risk of power shortages.

Vietnam must accelerate its energy transition process to reach the net-zero goal, which is to reduce the amount of carbon added into the atmosphere. This was stated by he in 2019. He explained that Vietnam needs to move from coal-fired power sources, to liquefied natural gases, biomass, or hydrogen power sources.

Stuart Livesey is the Vietnam Country Director of Copenhagen Offshore Partners (COP), the offshore wind project developer at Copenhagen Infrastructure Partners (CIP). He stated that countries around the globe are setting their targets for green-sourced supply chain and green energy.

"Vietnam is not as advanced as many other countries in the green transition process. There is still a need for skilled resources, infrastructure and suitable solutions. There is still time to make this happen if Vietnam takes the right reforms and makes key decisions to facilitate this transition and avoid missing crucial milestones.

It is currently impossible to build a commercial offshore windfarm in Vietnam because of a lack the necessary regulatory framework. He also said that there is a lack in flexibility for the offtake and transition of energy to allow for these offshore mega projects which could provide huge benefits for the country.