Vietnam desire energy

Can Vietnam achieve a just energy transition?

Realising such an energy transition from fossil fuels to renewables is a defining development challenge for this generation. With sensible policies, political commitment, and close collaboration with development and investment partners, Vietnam will achieve a just energy transition, while demonstrating to others that it can be done.

Can Vietnam meet a growing demand for energy?

It is not an easy path forward. Fulfilling these pledges while meeting a growing demand for energy is a huge challenge. In the electricity sector alone, the Vietnamese government estimates that installed power generation capacity will need to increase fivefold by 2050.

Are alternative energy sources cost-competitive in Vietnam?

Remarkably, in Vietnam, these alternative energies have already become cost-competitive, and in some cases, even more cost-effective than traditional fossil fuel-based energy sources. For example, the cost of utility-scale solar is now estimated from $0.0218/kWh to $0.0316/kWh, according to S&P Global data compiled in July 2024.

How can Vietnam benefit from the Just Energy Partnership?

Vietnam’s energy partnership with the G7 countries, announced in May, is a potential source of additional support for this transition. So is the consideration of carbon taxes and the issuance of green bonds. There are increasing opportunities through which to realise the benefits of the Just Energy Partnership.

What if Vietnam can't transition to renewables soon?

If Vietnam cannot transition to renewables soon, it will likely face significant risks to its energy security, growth and development, and current economic base, as well as physical hazards from climate change—this could come at Vietnam’s expense while its neighbors prosper.

Can DPPA help Vietnam transition to cleaner energy?

The DPPA mechanism could also be a solution for many renewable energy projects that have failed to enjoy the government’s Feed-in Tariff (FIT) price mechanism that provides a 20-year fixed-electricity price. DPPA is therefore unlocking groundbreaking opportunities for Vietnam’s corporate sector to transition to cleaner energy, too.