Page 60 - Ebook HTKH 2024

impacting different areas in the country. Thus, Vietnam needs to have appropriate
policies to develop clean energy resources to address the current situation and the next

generation’s requirements.
Vietnam endorsed a revised PDP 7 in 2016, covering the years 2011-2020 and
extending its outlook to 2030. This updated plan set targets to boost the proportion of
renewable energy to about 7% by 2020, increasing to over 10% by 2030.
Simultaneously, it aimed to decrease reliance on imported coal-fired power. These
objectives were designed to enhance energy independence, address climate change
22
concerns, safeguard the environment, and promote long-term socio-economic growth .
The PDP 8 covering the years 2021-2030 and the outlook to 2050 received

approval by the Vietnamese government in May 2023, following years of delay. This
plan outlines Vietnam’s strategy for energy transition, aligning with its pledge to achieve
net zero emissions by 2050 and the Just Energy Transition Partnership (JETP)
established at COP26 in 2021. Serving as a crucial blueprint for Vietnam’s energy
future, PDP 8 aims to bolster energy security and sustainability while supporting higher
economic development. The plan’s main purpose is to establish visible investment

objectives and a framework to direct the participation of public and private sectors in
expediting renewable energy development.
Vietnam’s PDP 8 outlines ambitious renewable energy goals, including a more
than US$130 billion investment target in 2030 for modern grid infrastructure and
energy facilities, aiming for 50% renewable energy in 2050. The plan envisions
renewable sources contributing 30.9% to 39.2% of electricity generation by 2030, with
a 47% target aligned with Vietnam’s JETP commitment. Two dedicated zones for

renewable energy businesses and manufacturing will be established by 2030. The
focus will be on developing solar, onshore, and offshore wind power, and promoting
biomass energy, particularly from wood pellets, to boost forest plantations and wood
processing industries, targeting the power production valuing nearly 2.30 GW in 2030.
Vietnam is prioritizing renewable resources, focusing on solar and wind power energy,
under PDP8. While coal and hydropower currently dominate Vietnam's energy mix,

renewables are expected to lead by 2050, with wind and solar accounting for 62.8%
of power generation. During the transition, gas will be the primary power source in
2030 but will decrease to about 3% by 2050. Substantial investments are required to
achieve these objectives, with an estimated more than US$130 billion in 2030, and
from US$400 to US$523 billion during 2031-2050. The majority of this investment
(US$34.8 billion to US$38.6 billion) will be allocated to the transmission grid, with
23
annual investments averaging US$1.7 billion to US$1.9 billion . To realize
this ambitious plan, both domestic and international investments are crucial.

22 Samuel, P. (2020), “Renewables in Vietnam: Current Opportunities and Future Outlook”,
https://www.vietnam-briefing.com/news/vietnams-push-for-renewable-energy.html/
23 Vietnam News (2023), “VN's power plan lacks mechanisms to attract private investors”, 16/8/2023,
https://vietnamnews.vn/economy/1582495/vn-s-power-plan-lacks-mechanisms-to-attract-private-investors.html

52