Energy Transition in Vietnam: A Strategic Analysis and Forecast

Energy Transition in Vietnam: A Strategic Analysis and Forecast

2024 | Minh Phuong Nguyen, Tatiana Ponomarenko, Nga Nguyen
The article "Energy Transition in Vietnam: A Strategic Analysis and Forecast" by Minh Phuong Nguyen, Tatiana Ponomarenko, and Nga Nguyen examines the energy landscape in Vietnam, focusing on the shift from coal to renewable energy sources. The rapid economic growth in Vietnam is driving a surge in electricity demand, projected to reach 124 thousand MW by 2030, making Vietnam the second-largest electricity consumer in Southeast Asia. This surge poses significant challenges to national energy security, given the impracticality of effective coal mining and the imperative to develop renewable energy sources. The study forecasts a substantial reduction in coal dependence by 2050, with government investment and green energy funds like JETP strategically directed towards renewable sources such as solar, wind, biomass, and hydrogen energy. The research substantiates the viability of an energy transition from coal to green energy, considering various economic and environmental factors. The article presents an assessment of the rate of replacing coal with renewable energy sources, taking into account different scenarios for economic development, energy consumption growth, and renewable energy utilization. The study also analyzes the current state of Vietnam's electricity sector, evaluates energy governance against the trilemma indicators of energy security, equity, and environmental sustainability, and proposes action plans for sustainable energy development. The government's commitment to achieving carbon neutrality by 2050 and the increasing importance of renewable energy sources are highlighted, with a focus on solar, wind, and biomass energy. The article concludes with a strategic plan for transitioning to renewable energy sources, emphasizing the need for technological advancements and international cooperation.The article "Energy Transition in Vietnam: A Strategic Analysis and Forecast" by Minh Phuong Nguyen, Tatiana Ponomarenko, and Nga Nguyen examines the energy landscape in Vietnam, focusing on the shift from coal to renewable energy sources. The rapid economic growth in Vietnam is driving a surge in electricity demand, projected to reach 124 thousand MW by 2030, making Vietnam the second-largest electricity consumer in Southeast Asia. This surge poses significant challenges to national energy security, given the impracticality of effective coal mining and the imperative to develop renewable energy sources. The study forecasts a substantial reduction in coal dependence by 2050, with government investment and green energy funds like JETP strategically directed towards renewable sources such as solar, wind, biomass, and hydrogen energy. The research substantiates the viability of an energy transition from coal to green energy, considering various economic and environmental factors. The article presents an assessment of the rate of replacing coal with renewable energy sources, taking into account different scenarios for economic development, energy consumption growth, and renewable energy utilization. The study also analyzes the current state of Vietnam's electricity sector, evaluates energy governance against the trilemma indicators of energy security, equity, and environmental sustainability, and proposes action plans for sustainable energy development. The government's commitment to achieving carbon neutrality by 2050 and the increasing importance of renewable energy sources are highlighted, with a focus on solar, wind, and biomass energy. The article concludes with a strategic plan for transitioning to renewable energy sources, emphasizing the need for technological advancements and international cooperation.
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