HANOI: Coal-reliant Vietnam aims to significantly ramp up its power generation capacity by 2030, focussing on renewable energy and adding nuclear power to the mix, according to the country's newly amended national power plan.
To meet the targets, Vietnam would need a total investment of US$136.3 billion by 2030, the government said, equivalent to more than a quarter of its 2024 gross domestic product.
The South-East Asian industrial hub needs to fast expand power supply as electricity demand grows, to avoid shortages that recently spooked foreign investors. It also wants to cut its use of coal, which remains its main source of energy.
Under the adopted blueprint, Vietnam wants to raise its total installed capacity to a range of 183 to 236 gigawatts by 2030, up from more than 80 GW at the end of 2023, the government said late on Wednesday (April 16).
To do so, it is renewing a bet on nuclear power, after it suspended its programme in 2016 following the Fukushima nuclear disaster in Japan and amid budget constraints.
The first nuclear power plants would be online between 2030 and 2035, with combined capacity of up to 6.4 GW, the government said, adding that another 8 GW would be added to the mix by mid-century.
Officials have said Vietnam has discussed small modular reactors, which the International Atomic Energy Agency says are still under development but would be more affordable to build than large power reactors.
The government said earlier this year it would hold talks with foreign partners about nuclear power projects, including those from Russia, Japan, South Korea, France and the United States.
On Tuesday, Korea Electric Power Corp expressed interest in Vietnam's nuclear projects, as the company's chief visited the country.
Sources close to the government told Reuters Vietnam is prioritising Russian and Japanese contractors, but remains open to others that offer good technology and competitive prices.
Under the new plan, solar power would account for 25.3%-31.1% of total capacity by 2030, up from 23.8% in 2020, while onshore and nearshore wind energy would go up to 14.2%-16.1% from nearly zero at the start of the decade, the government said.
The new targets come after authorities flagged a retroactive change to preferential prices for producers of solar and onshore wind energy, which has sparked concern among investors.
Coal-fired power plants would account for 13.1%-16.9% of the mix, down from about one third in 2020, and plants using liquefied natural gas would account for 9.5%-12.3% of total generation capacity from zero now, according to the plan.
The government has also set a target for offshore wind energy at 6-17 GW between 2030 and 2035. It had aimed for 6 GW for this decade, but none have been built yet. - Reuters
