Vietnam needs $86 billion by 2030 for energy transformation

Energy transition is an inevitable trend worldwide to reduce greenhouse gas emissions, ensure energy security, and minimize negative impacts on socioeconomic development and the environment, Thi said on June 1 during a discussion on urban development and energy transition at the ongoing fifth session of the 15th National Assembly.

During COP26, Vietnam pledged to reduce its carbon footprint to zero by the year 2050, and recently Vietnamese Prime Minister has released several energy transition policies, rules, plans, and initiatives in an effort to achieve the set objectives.

The deputy warned that there are significant barriers to implementation in the areas of money, technology, management, people power, and especially capital.

Energy transformation will require an initial investment of $86 billion by 2030, and a further $370 billion by 2050, Thi added.

High potential

The World Bank estimates that the potential capacity of Vietnam's offshore wind generation is around 475 GW. The organization said that 512 gigawatts (GW) of potential energy is available in 39 percent of Vietnam where winds exceed 6 meters per second.

There is a lot of potential in Vietnam because 8.6% of the country's land and water are ideal for massive wind power facilities. Based on the findings of other institutions' research, this capability may exceed 900 GW. The Philippines and Indonesia combined can't come close to this potential.

The World Bank's radiation map suggests that Vietnam has a tremendous theoretical solar energy potential. The average annual solar radiation intensity is 897 kWh/m2, which is between 2.46 and 5.77 kWh/m2 on a daily basis.

Provinces in the Central Highlands, South Central, and Southeast, including Dak Lak, Gia Lai, Nha Trang, Ninh Thuan, Binh Thuan, Tay Ninh, and Binh Phuoc, have the greatest radiation intensity overall.

The findings of the technical potential calculation of electric winch reveal a vast, accessible region—nearly 14% of the overall area of the country—with a technical potential of up to 1,677,461 MW.

Without adequate adaptation and mitigation efforts, the World Bank predicts that by 2050, climate change would cause a yearly decline of 12-14.5 percent in Vietnam's GDP.

In order to serve economic development - domestic society and join hands with the international community to respond to climate change, Deputy Minister Do Hung Viet decided to join JETP with a number of G7 countries and other international partners at the workshop.