The power generation structure is strongly skewed towards renewable energy.

By 2030, the power generation structure will shift strongly towards renewable energy sources, accounting for 27% of total power plant capacity. Of this, onshore wind power will account for 14.5%, offshore wind power 4%, and solar power 8.5%.

The installed capacity of renewable energy reaches 1 trillion kW.

According to Statista's projections, Vietnam's electricity production in 2024 will reach 282.40 billion kWh, with a compound annual growth rate (CAGR) of 2.99% (2024-2029), of which renewable energy production has a CAGR of 3.39%.

In line with global trends, Vietnam is undergoing a major shift in its electricity production structure. The proportion of electricity from renewable sources has been rapidly increasing. According to the Power Development Plan VIII, approved by the Prime Minister in Decision 500/QD-TTg dated May 15, 2023, by 2030, the electricity source structure will strongly shift towards renewable energy sources, accounting for 27%, with onshore wind power accounting for 14.5% of total power plant capacity, offshore wind power 4%, and solar power 8.5%.

Mr. Peter Lundberg, Director of the Asia Pacific Urban Energy Association, at the opening ceremony of Electric & Power Vietnam 2024 on the morning of September 4th.

Speaking at the opening of the Electric & Power Vietnam 2024 Exhibition on Power Transmission and Distribution Technology, Equipment and Solutions, Peter Lundberg, Director of the Asia Pacific Urban Energy Association (APUEA), noted that Vietnam is facing the challenge of reducing carbon emissions, as currently, the majority of Vietnam's energy comes from coal – a resource that contributes significantly to carbon emissions.

Citing forecasts from the International Renewable Energy Agency (IEA), Peter Lundberg added that Vietnam is estimated to have a renewable energy potential of 1.2 terawatts, equivalent to 1 trillion kW.

“To address these challenges, Vietnam has set ambitious climate targets, committing to achieving net-zero greenhouse gas emissions by 2050. This is a huge but necessary responsibility, given Vietnam’s enormous renewable energy potential,” said Peter Lundberg.

Most recently, the Government issued Decree No. 80/2024/ND-CP regulating the Direct Power Purchase Agreement (DPPA) mechanism between renewable energy power generation units and large electricity consumers. This mechanism brings many expectations for renewable energy businesses. DPPA promises to create opportunities for investment in the development of green energy sources, helping businesses obtain renewable energy certification sooner, reduce carbon emissions, and increase the competitiveness of goods when exporting to international markets.

Sustainable energy trends

Ms. Nguyen Van Nga, Head of the Southern Representative Office of the Ministry of Industry and Trade, stated that Electric & Power Vietnam 2024, with over 350 exhibitors and brands from more than 10 countries showcasing advanced technologies and groundbreaking solutions from around the world, is key to helping Vietnam's electricity industry move closer to its goal of learning, cooperating, and developing sustainably.

Electric & Power Vietnam 2024, in conjunction with the 16th International Exhibition on HVAC, Refrigeration and Smart Buildings in Vietnam ( HVACR Vietnam 2024), will take place from September 4-6 , 2024 in Ho Chi Minh City. Photo: Gia Han

"This is a crucial time to work together to find smart solutions that both meet current needs and protect the environment for future generations. The Ministry of Industry and Trade highly appreciates and strongly supports activities that promote the development of the energy, electricity, and HVAC industries," a representative from the Ministry of Industry and Trade affirmed.

According to Dr. Nguyen Xuan Tien, General Secretary of the Vietnam Association of Refrigeration and Air Conditioning Technology, the refrigeration industry alone consumes a very large amount of electricity, currently accounting for 16-20% of the total electricity consumption worldwide, and this could reach 30% by 2030. In offices and hotels, the amount of electricity consumed by air conditioning also accounts for 40-60%. Refrigerants, such as R22, R32, R410A, NH3, etc., are mandatory in air conditioners and air conditioning systems.

“Refrigerants are a major concern worldwide because they destroy the ozone layer, cause the greenhouse effect, and contribute to global warming. It is no coincidence that in our country, the environmental protection law includes specific regulations on protecting the ozone layer and reducing greenhouse gas emissions. These issues have presented scientists worldwide, as well as air conditioner manufacturers, with a huge task: to meet societal needs while simultaneously saving energy, combating greenhouse gas emissions, and protecting against global warming,” Dr. Tien pointed out.

Peter Lundberg advises that the future of the electricity sector in particular, and Vietnam in general, will not only be about renewable energy, but also about smarter energy use.

The IEA also points out that energy efficiency is just as important to this transition as the development of renewable energy. By adopting energy-saving technologies and practices, we can reduce overall energy demand, lower costs, and reduce dependence on fossil fuels.

“Imagine the possibilities if we could harness even a small fraction of the current power potential. For example, harnessing just 10% of solar photovoltaic energy could meet the entire national electricity production capacity of 80 gigawatts. These are not just numbers; they represent the future of energy in Vietnam, a future where clean, renewable energy sources power households, industries, and cities,” the APUEA representative stated.

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