NEW WAVE OF RENEWABLE ENERGY INVESTMENT

Viet Nam is witnessing a new wave of investment into renewable energy, said Deputy Minister of Industry and Trade Cao Quoc Hung.

The Deputy Minister made the point on March 12 while attending an international seminar on renewable energy development towards less carbon emission in Viet Nam which was jointly held by the British Embassy in Ha Noi and the Viet Nam Energy Association.

The event drew the attendance of leading experts and business representatives on renewable energy and green finance from the UK and Viet Nam.

Deputy Minister Hung forecast that by 2030, the Vietnamese economy would highly expand at an average rate of 6.5-7.5% and prioritize energy security in favor of sustainable growth.

Under the National Power Development Plan which was ratified by the Government, by 2030, the country’s total electricity generation capacity will touch 130,000 MW from 47,000 MW at present. Hence, about 83,000 new power sources will be put into operation by 2030 besides transmission and distribution infrastructure.

In that context, Viet Nam prefers renewable energy with a view to gradually reducing its reliance in traditional power and protecting the environment.

Statistics showed that Viet Nam will be able to produce 8,000 MW from small-sized hydro-electric power plants; 20,000 MW wind power; 3,000 MW biomass power; and 35,000 solar power.

In the 2015-2030 period, renewable energy generation will increase from 58 billion kWh in 2015 to 101 billion kWh by 2020; 186 kWh by 2030, and 452 billion kWh by 2050.

Proportions of renewable energy will grow from 35% in 2015 to 38% in 2020 and 43% in 2050.

To fulfill the aforesaid goals, the MoIT has already composed and proposed to the Government to issue new regulations. The Government also introduced supportive policies for investors including credit provision, corporate income tax cut, lower land lease, and modal for direct renewable power purchase agreements.

Thanks to the consistent policies and specifically supportive mechanisms, Viet Nam is witnessing a new wave of investment from both domestic and foreign investors in renewable energy development.

Specifically, by the end of 2018, 285 small hydro-electric plants were put into operation, generating 3,322 MW. Eight wind power plants churned out 243 MW. Ten biomass power plants generated 212 MW. Two solar power plants produced 86 MW.

Total renewable power output accounted for 2.1% of the national grid.

On this occasion, a group of 30 British firms in renewable energy and green finance will share experience with Vietnamese partners on policy approach, legal development, and energy development towards less carbon emission.

British Ambassador to Viet Nam Gareth Ward was convinced that the workshop would forge a foundation for the UK to work and support Viet Nam to shift from fossil power to renewable energy in the coming time.

Source: VGP


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