A recent study conducted by Danish and Vietnamese researchers indicates that not only is it technically feasible for Vietnam to achieve its climate neutrality goal by 2050, but it is also the most economically advantageous scenario among those analyzed. The report, titled “Vietnam Energy Outlook Report – Pathways to Net Zero,” emphasizes the importance of reaching peak CO2 emissions by 2030 to ensure a cost-effective transition to a sustainable energy future.
Economic Growth and Energy Consumption
In recent years, Vietnam has experienced robust economic growth, resulting in a substantial increase in energy consumption and CO2 emissions. As one of the fastest-growing economies in Southeast Asia, it is crucial for Vietnam to decouple economic growth from energy consumption. This can be achieved through significant investments in renewable energy and energy-efficient technologies. The report outlines a series of actionable recommendations aimed at facilitating this transition.
Key Recommendations for Sustainable Energy Growth
The findings suggest that expanding solar and wind power, alongside electrifying the transportation and industrial sectors, represents the most cost-effective approach to support Vietnam’s sustainable growth. With vast potential for solar energy and both onshore and offshore wind, Vietnam is well-positioned to transition from fossil fuels to renewable energy sources.
To meet its net-zero emissions target by 2050, Vietnam must ensure that CO2 emissions peak by 2030. The analysis indicates that an additional 56 gigawatts (GW) of renewable energy—comprising 17 GW from onshore wind and 39 GW from solar—needs to be integrated into the energy system by 2030. Failure to act promptly could lead to increased costs and heightened impacts from climate change.
Flexibility in Power Generation
Integrating substantial amounts of fluctuating renewable energy into the grid necessitates a flexible approach to power generation. The report emphasizes that existing coal-fired power plants must adapt by becoming more flexible, allowing for reduced coal output to prioritize green energy in the electricity supply while maintaining backup capacity until reliable storage solutions can be implemented.
The Ambitious Offshore Wind Goals
Fulfilling Vietnam’s aspiration to develop 84 GW of offshore wind capacity by 2050 requires strong commitment and immediate action. A clear and predictable legal framework is essential to attract the necessary investments for the offshore wind sector. The report recommends that Vietnam begin designating offshore areas, enhancing port infrastructure, and strengthening the power grid to facilitate this development.
The Danish-Vietnamese Energy Partnership
The Danish Energy Agency collaborates with Vietnam’s Ministry of Industry and Trade through the joint Energy Partnership Program between Denmark and Vietnam (DEPP). This ongoing partnership, which began in 2013, focuses on low-carbon development, energy efficiency, and the integration of renewable energy into the power grid. The current phase, DEPP III, runs from 2021 to 2025 and includes initiatives aimed at promoting offshore wind energy and improving energy efficiency in the industrial sector.
By leveraging Danish expertise in developing a reliable, low-carbon energy system, Vietnam can advance its economic growth while committing to environmental protection. The ongoing collaboration under this program highlights the critical importance of addressing climate change through innovative and economically viable strategies.
