"Backbone" of Vietnam's renewable energy industry

In addition to the great potential, the Government 's "involvement" also helps Vietnam's renewable energy industry become "hotter". In 2023, the Government approved the Power Plan VIII, which prioritizes the development of renewable energy sources with the capacity of offshore wind power reaching 6,000 MW and rooftop solar power reaching 2,600 MW by 2030.

Vietnam's renewable energy industry has a lot of room for development. Photo: Vneconomy

The report of the International Renewable Energy Agency (IRENA) also shows that Vietnam is the country with the highest growth rate of renewable energy productivity in Southeast Asia, with the proportion in the last 4 years (from 2019-2023) exceeding 55.6% of the total electricity supply in Vietnam. This proves that the renewable energy industry has a lot of room for development and investment opportunities for businesses are not small.

Vu Phong Energy Group is one of the pioneer investors in the field of renewable energy in Vietnam since 2009. The group has completed and transferred more than 1,000 projects in the field of rooftop solar power for businesses, households and solar power plants.

Currently, rooftop solar power for manufacturing enterprises is the field that Vu Phong Energy Group is promoting production. Through the electricity purchase and sale cooperation plan, the Group supports enterprises using renewable energy to switch to green production and achieve emission reduction targets without investing in the system.

“Rooftop solar power systems are like a ‘killer of two birds with one stone’ because they not only help reduce production costs but also help businesses obtain certification for using clean energy,” said Pham Dang An, Deputy General Director of Vu Phong Energy Group. “In the future, the rooftop solar power segment has great potential for development.”

Citing the VIII Power Plan, he said that the goal of the plan is that by 2030, 50% of office buildings and 50% of households will use rooftop solar power for self-consumption. Therefore, domestic and foreign enterprises still have many opportunities to enter the market and fully exploit the rooftop solar power segment.

Offshore wind power is also an attractive field for investors. “Vietnam’s more than 3,000 km of coastline is an attractive ‘wind mine’ in the eyes of investors,” said Mr. Dang Quoc Toan, Chairman and General Director of Asia Petroleum Energy Corporation.

Power Master Plan VIII indicates that offshore wind power is identified as the backbone of the renewable energy industry. This can be considered the future energy industry of Vietnam.

The Chairman and CEO of Asia Petroleum Energy Corporation affirmed: “Many investors have come to Vietnam, opened offices and are just waiting for investment opportunities. This industry will be equal to, or maybe even bigger than, oil and gas.”

From the perspective of a foreign investor, Mr. Stuart Livesey, member of the Executive Board and Co-Chairman of the Green Development Subcommittee of the European Chamber of Commerce in Vietnam (EuroCham), expressed his view that Vietnam has made remarkable progress in its energy transition efforts.

In recent times, the cooperation between Vietnam and Europe in the field of renewable energy has been very strong. EuroCham has been actively coordinating with state agencies to simplify administrative procedures and build a legal framework to support investment. The "sweet fruit" of the cooperation between the two sides is Decree 80 on the direct power purchase mechanism (DPPA). The Decree has helped international investors access the Vietnamese energy market more easily.

Vietnam has enjoyed a period of strong economic growth and is one of the fastest growing economies in Southeast Asia. The energy transition journey will help Vietnam maintain strong, sustainable growth momentum and realize its development goals, including its commitment to achieving net zero emissions by 2050.

The opportunities and potentials are clear. The cooperation of the Government, people, and domestic and foreign business communities will help Vietnam fully exploit the "gold mine" of renewable energy.

Source: https://kinhtedothi.vn/xuong-song-nganh-nang-luong-tai-tao-viet-nam.html