Will Vietnam build a better energy future?

Building a cheaper, cleaner, and more secure energy future for Vietnam will not happen overnight. Other markets further along in development of renewable power greatly benefited from the support of the government.

Why should Vietnam pursue a renewables-led path?

Without significant new capital investment and a shift in resource mix, Vietnam’s power system will be at risk. This is a watershed moment for Vietnam. Renewables are the lowest-cost option for Vietnam to meet its energy needs. Pursuing a Renewables-Led Pathway offers the country the prospect of less expensive, cleaner, and more secure energy.

Are renewables the cheapest form of new power generation in Vietnam?

Renewables have become the cheapest form of new power generation in Vietnam, based on a levelized cost of electricity. Renewables have become Vietnam’s lowest-cost option to meet increased demand for electricity. 1Levelized cost of electricity. Calculated by averaging LCOE for good solar and wind locations in North and South.

Can renewables help Vietnam meet its energy needs?

Renewables have the potential to become the lowest-cost option for Vietnam to meet its energy needs. Vietnam’s power system is at an inflection point. Over the past five years, load has increased at an average of about 10 percent a year, a staggering pace.

Will Vietnam solve its energy challenges?

There is no silver bullet that will solve Vietnam’s energy challenges. The ability to meet rapidly growing demand while keeping costs low will depend on the creation of financial and regulatory infrastructure that make the market attractive to capable renewables developers.

Does Vietnam's purchase-power agreement provide incentives for investment?

As of today, with ve key showstoppers, Vietnam’s purchase-power agreement does not provide suf cient incentives for investment. 1Government guarantee for build–operate–transfer thermal possible to decrease over time due to high government debt.