Vietnam needs annual funding to boost power plant development

11 Aug 2022

Vietnam will require an annual investment of between $8 billion and $14 billion between now and 2030 to develop new power plants and expand its grid.

According to the country’s Deputy Minister of Industry and Trade, Dang Hoang An on Wednesday, 75% of the funding would be allotted to new power plants, with renewable sources prioritised. The remaining 25% would be allocated to grid expansion.

He added that Vietnam will be seeking to generate funds from private investors for the new projects.

The country needs to bolster its installed power generation capacity by an annual 10% to support the rapidly growing population and economy.

Dang Hoang An added that Vietnam will increase its offshore wind capacity to 7 gigawatts (GW) by 2030 and to 65 GW by 2045, whilst reducing the amount of coal in the energy mix. Last year, the country vowed to become carbon-neutral by 2050.

"Vietnam will not add new coal-fired power plants to its master power development plan, and will only continue coal projects that are under construction until 2030," he added.

In July, the ministry requested the government removes future coal projects with a combined capacity of 14.12 GW from the power development plan that is currently being drawn up, Reuters news agency reports.

Under the most recent draft of the plan, the total installed power generation capacity in Vietnam would be increased to 121 GW by 2030 and to 284 GW by 2045, up from 76.6 GW at the end of last year, as per reports by state media.