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According to Vietnam’s deputy industry minister, investment in Vietnam will be required between $8 billion to $14 billion per year up to 2030 for new power plants and expansion of its grid.
According to a statement by Deputy Minister of Industry and Trade Dang Hoang An, 75% will be used for new power plants. Priority would go to renewable sources and 25% on grid expansion.
Without giving any details, he stated that the country would seek private investment to finance the new power projects.
Vietnam is a regional manufacturing center and must increase its power generation capacity by approximately 10% per year to support its rapidly-growing economy.
Vietnam pledged last year that it would become carbon-neutral by 2050. It will increase its offshore wind capacity by 2030 to 7 gigawatts, and 65 GW by 2045. Meanwhile, it will reduce the amount of coal in its energy mix.
Vietnam will not add any new coal-fired power stations to its master power development plans and would only continue existing coal projects until 2030.
Last month, the ministry asked the government for a retraction of future coal projects that have a combined capacity exceeding 14.12 GW from the master energy development plan.
According to state media, Vietnam’s total power generation capacity will increase to 121 GW in 2030, and 284 GW in 2045 under the most recent draft of its master power development plan. This is an increase from the 76.6 GW it had at the end of last year.