Page 180 - HỘI THẢO KHOA HOC 18.5.2022

Plan 8 for the Development of Electricity

The Power Development Plan 8 (PDP8) for 2021 with a vision through 2045 was supposed to
be released in 2020. However, it was put off until later. A plan to use renewable energy was in the
first versions. By 2030, the country’s coal capacity will be 40 gigatonnes (GW). Following Prime
Minister Chinh’s promise at COP26, sources have indicated that the current PDP8 draught is being
updated further to reflect Vietnam’s commitment to the Paris Agreement. To address overcapacity,
Deputy Prime Minister Le Van Thanh has directed appropriate government agencies to lower solar
energy capacity while increasing off-shore wind capacity to boost efficiency. It is expected that
the draught will be approved sometime during the first quarter of 2022.

The most important drivers

As a result of the government’s dedication to energy availability and popular demand for clean
air, Vietnam has made significant strides in combating climate change. Vietnam has been dealing
with air pollution challenges, with major cities such as Hanoi and Ho Chi Minh City particularly
vulnerable to pollution owing to fast urbanisation. As a result of the solar and wind industries,
legislators are being pushed to adopt more harsh climate change measures.

While Vietnam is one of the top nations in terms of solar and wind energy capacity among
ASEAN countries, overcapacity, a lack of infrastructure, and regulatory barriers have slowed part
of this development in recent years.

Challenges

As Vietnam’s economy continues to expand quickly, there will be difficulties. The electricity
demand is expected to grow at 9 per cent each year through 2025. Vietnamese energy sources
include coal, oil, natural gas, hydroelectricity, and renewable energy sources. Experts have pointed
out that renewable energy will play a significant part in meeting these pledges, with the investment
necessary for the renewable energy industry anticipated to be roughly US$23.7 billion by 2030,
according to estimates. For foreign investors to benefit from this, the government must remove
hurdles connected to money, complicated rules, supporting industries, grid capacity, talented

human resources, etc. Despite this, Vietnam’s promise at COP26 sets the proper tone and
demonstrates that the government is serious about combating climate change and developing
renewable energy sources. Foreign investment is likely to be welcomed, yet improvements to rules
and incentives will be required to make it successful. In this case, the finished PDP8 will serve as
a starting point.

Discussion Questions
1. Summarise the main content of the COP 26

2. Why are commentators reporting that Australia’s abysmal climate record is being brought
into the focus at COP26?
3. What are your thoughts on Vietnam’s commitment to the United Nations Climate Change
Conference (COP 26)?
4. Assuming you are the CEO of a small firm, do you believe that Vietnam’s commitment to
COP 26 will have an impact on your organisation?

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