Investors look to inject $150b in Vietnam's power sector

The country will need 60GW by 2020 to meet its surging power demand.

Energy investors are eyeing to spend up to $150b in Vietnam’s power sector over the coming decade, although coal is still expected to dominate the energy mix despite efforts to go green, a report by Reuters revealed.

With a population nudging 100 million and annual gross domestic product (GDP) growth around 7%, Vietnam has forecast power generation will need to rise from about 47GW currently to 60GW by 2020 and 129GW by 2030.

Also read: Winds of change: Vietnam pushes for more developments amidst growing energy demand

The country’s current Power Development Plan (PDP 7) puts coal front and centre to meet new demand.

Whilst generation is set to double, PDP 7 forecast coal-fired generation would grow rapidly to 2030, with its share of the energy market rising from 33% to 56%.

Facing a rapid rise in pollution, the Ministry of Industry and Trade has started to offer incentives for renewables, which so far only play a marginal role in Vietnam’s energy sector.

According to a draft law planned for June, state-owned utility Vietnam Electricity (EVN), which distributes all of the country’s power, will pay solar projects between $0.0667 and $0.1087/kWh.

Read the full report here.