Vietnam won't build new coal-fired power plants after 2030, gov't says

At COP26 in 2021, this Southeast Asian country set itself a goal of zero carbon emissions by 2050. But the presentation of its energy transition plan by 2030, estimated at 135 billion dollars, has been delayed for more than two years, after several postponements and modifications of the initial project.

According to the “Energy Development Plan 8” presented by the government, “by 2030, only coal mining projects already approved or under construction can be finalized”.

Thus, by the end of the decade, coal will represent only 20% of the energy mix in Vietnam against 50% currently, according to government forecasts.

But the choice to continue coal mining until 2030 "will significantly increase the country's coal-fired electricity generation capacities, and will be an obstacle to the development of renewable energies", nuances an analyst of the energy sector of Trend Asia, Andri Prasetiyo.

This expert also considers "disappointing" the priority given to gas as a transition energy.

The government's new energy plan calls for phasing out coal to generate electricity by 2050, to allow a transition to "zero-emission" production from "biomass or ammonia".

But this transition will require significant funding. In addition, "ammonia is not a realistic and viable alternative", objects Andri Prasetiyo.

The energy plan presented on Tuesday also sets a target of 50% of housing or offices powered by solar energy produced on site by 2030.

If Vietnam ranked tenth in the world for its solar energy production capacities in 2021, its infrastructures do not have the capacity to manage consumption peaks, according to the expert.

Vietnam expects solar power to make up 8,5% of its energy mix by 2030.