Increase in renewable energy contribution in Vietnam

According to the Electricity of Vietnam (EVN), in the first seven months of 2022, the mobilisation rate of renewable energy (RE) will reach over 22 billion kWh, accounting for 14% of the electricity output of the whole system.

Electricity production of the whole system in July 2022 reached 24.55 billion kWh. Accumulated 7 months reached 158.02 billion kWh, up 4.2% over the same period, in which the ratio of mobilisation of some types of power sources to the total electricity output of the whole system as follows: Hydroelectricity output reached 52.58 billion kWh, accounting for 33.3%; Coal thermal power reached 63.94 billion kWh, accounting for 40.5; Gas turbines reached 17.39 billion kWh, accounting for 11%; Renewable energy reached 22.06 billion kWh, accounting for 14% (of which solar power reached 16.54 billion kWh, wind power reached 5.24 billion kWh); Imported electricity reached 1.62 billion kWh, accounting for 1%. Electricity production of EVN and Power Generation Corporations (including joint stock companies) reached 72.94 billion kWh, accounting for 46.16% of the electricity production of the whole system.

Renewable energy reached 22.06 billion kWh, accounting for 14% (of which solar power reached 16.54 billion kWh, wind power reached 5.24 billion kWh) - EVN

Based on the information at the Workshop on the impact of COP26 on energy transition towards green growth, on August 17, Mr. Rahul Kitchilu, Head of Infrastructure Program, World Bank (WB) said: "Vietnam's conclusion at COP-26 held in Glasgow on net zero emissions by 2050 plays a globally important role. Vietnam is one of the leading countries in renewable energy development with more than 20 GW of renewable energy and mobilised US$ 17 billion in private investment over the past two years. This is a remarkable effort and It is a serious step towards accelerating the clean energy transition and removing carbon from the economy. However, due to the relatively short application time of these mechanisms, combined with the impact of the COVID-19 pandemic during the past 2 years, many projects have been in the situation of "missing the FIT price". Solar power and wind power are then slow to be issued, making it impossible for investors to plan future investment plans".

As estimated by the World Bank in the recently released Country Report on Climate and Development for Vietnam (CCDR), Vietnam's total additional financial need to build resilience and decarbonisation, towards net zero emissions could amount to $368 billion between 2022-2040, approximately 6.8% of GDP per year.

The resilience-building roadmap alone will account for about two-thirds of this, as significant funding is needed to protect assets and infrastructure as well as vulnerable populations.

The costs of the decarbonisation pathway are mainly derived from the energy sector, including the costs of investing in renewable energy and managing the transition away from coal, which could cost about $64 billion between 2022 and 2040.