• vi
  • en
  • zh-hans

Alternative green energy development: A inevitable direction

10/10/2020 16:07

The earth is warming due to increased greenhouse effect. Fossil fuel sources meet most of the country’s energy needs. However, according to experts, it is a non-renewable energy source as well as fossil fuel sources are slowly running out. Therefore, researching and using alternative and renewable green energy sources is an indispensable need.

Alternative green energy development:  A inevitable direction
Demand for renewable energy development in Vietnam is increasing


According to a report by the United Nations Meteorological and Environment Organization, concentration of CO2 in the atmosphere, cause of climate change, has continuously set records in recent years and is forecast to continue to rise.
Many studies have also shown potential of alternative green energy or renewable energy (RE) in Vietnam. Solar radiation occupies about 2,000-5,000 hours / year, providing an energy source with a potential equivalent to 43.9 billion TOE (tons of oil equivalent). Meanwhile, 8.6% of the total area of our country has very high wind potential, ranking first in Southeast Asia and suitable for deploying large wind turbines
Thanks to policy mechanisms to attract investment in RE in recent years, it is expected that capacity of solar and wind power plants that will come into operation by the end of 2019 will reach 2,000 MW, exceeding the plan set out in adjustable power planing 7
According to a report by the Central Economic Commission, wind and solar energy can supply two thirds of electricity demand of the entire electricity system of Vietnam by 2030. Notably, the proportion increase   of renewable energy will help ensure sustainable national energy security by reducing dependence on foreign sources, both on coal and on direct energy imports.
Vietnam possesses a long coastline, tropical climate, strong agricultural economy, thus creating diverse and rich conditions for the exploitation and production of wind, solar energy and biofuel
One noteworthy project this year is a BIM solar energy farm in Ninh Thuan, developed by Vietnam’s BIM Group in partnership with Philippines-based AC Energy. The solar energy farm consists of three facilities with a combined capacity of 330MW, which is the largest facility of its model in Southeast Asia, according to BIM Group.

It’s necessary to have a suitable development roadmap

To encourage development of renewable energy, serving development goals, Ministry of Industry and Trade has developed and submitted to the Government a series of mechanisms such as Feed-in-Tariff Mechanism for solar and wind power, power is manufactured from solid waste, biomass electricity …
The Government also issued other preferential policies for investors such as giving priority to credit provision, exemption / reduction of corporate income tax, land rental, using sample power sale and purchase contract … This is the latest step forward for the government’s relentless efforts to support the RE sector.
However, rapid development of RE resources in recent years is still facing a number of shortcomings and challenges such as high investment costs, low operating hours of power sources. Power grid infrastructure in some areas with great potential for renewable energy is not ready to release capacity, land use requirement is big (especially solar power projects) …
According to Mr. Cao Quoc Hung Deputy Minister of Industry and Trade ,RE is energy from continuous sources such as solar energy, wind, rain, tides, waves and geothermal. In order to develop RE, it is necessary to analyze and calculate to give a roadmap to exploit effectively projects in each phase of Vietnam. As well as, consider possibility of developing the supporting industries of RE equipment manufacturing to increase the localization of equipment, and reduce costs …
From the perspective of a market research and consulting unit, Mr. Stephen Wyatt – General Director of Vietnam Jones Lang Lasalle said that “Vietnam is a country converging the ideal geographical features for the production of kinds of Renewable Energy. But, Vietnam is facing pressures on the power grid and electricity prices are expected to rise due to increased development activities and consumer demand, especially in big cities, and industrial zones. Therefore, investment in alternative sectors such as RE will play a very important role in the future development of the country”.
The RE development strategy for the period of 2015-2030, up to 2050, approved by the Government of Vietnam on September 2015 has set out specific targets, according to which the amount of electricity produced from RE sources will increase from 58 billion kWh in 2015 to 101 billion kWh in 2020, 186 billion kWh in 2030 and 452 billion kWh in 2050.
In relative terms, proportion of electricity produced from RE sources will increase from 35% in 2015 to 38% in 2020 and 43% in 2050 …

Related news

Which opportunities is for industrial real estate in 2020?

Mr. John Campbell, head of industrial real estate Department of Vietnam Savills

Show more
What real estate segment will heat up in the Covid-19 pandemic?

The Covid-19 pandemic has clearly had short-term effects on many segments of the real estate market in Vietnam.

Show more