Void Chronicle
  • Home
  • Finance
    • Personal Finance
    • Banking
  • Crypto
  • Energy
  • Markets
  • Medical
  • Political
  • Technology
No Result
View All Result
  • Home
  • Finance
    • Personal Finance
    • Banking
  • Crypto
  • Energy
  • Markets
  • Medical
  • Political
  • Technology
No Result
View All Result
Void Chronicle
No Result
View All Result
Home Energy

What’s Driving Vietnam’s Renewable Energy Boom? – The Diplomat

VC by VC
January 12, 2021
in Energy
0
What’s Driving Vietnam’s Renewable Energy Boom? – The Diplomat
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

Pacific Money | Economy | Southeast Asia

As elsewhere, Vietnam’s rising reliance on vitality imports has pushed its inexperienced vitality push.

What’s Driving Vietnam’s Renewable Energy Boom?

Photo voltaic installations in Vinh Phuc province, Vietnam.

EA Builder

Credit score: Wikimedia Commons

Commercial

In 2014, the put in capability of non-hydroelectric renewable vitality in Vietnam (akin to photo voltaic, wind and biomass gasification) stood at 109 megawatts (MW), about one third of 1 p.c of the nation’s whole put in capability of 34,079 MW. On the time, Vietnam’s electricity mix was dominated by hydropower (46 p.c), coal (29 p.c) and pure fuel (22 p.c). By the top of 2019, wind and photo voltaic accounted for 5,700 MW of installed capacity, about 10 p.c of the entire provide. Which means Vietnam has seen wind and photo voltaic go from basically zero to 10 p.c of its provide in solely 5 years. What’s driving this renewable vitality growth?

The first mover is Vietnam’s explosive charge of progress. In line with the Asian Development Bank, Vietnam’s financial system has grown at 6 p.c or extra yearly since 2014, reaching 7 p.c in 2018 and 2019. This fast progress is driving up vitality consumption at a rare charge. The state-owned electrical utility, Vietnam Electrical energy (EVN), has seen the quantity of vitality offered rise from 128.6 terawatt hours (TWh) in 2014 to 209.four TWh in 2019. Consumption of electrical energy has been rising at greater than 11 p.c per yr, rising at a charge significantly quicker than GDP. That is fueling an almost insatiable demand for extra electrical energy technology and funding.

Vietnam’s historic reliance on hydroelectricity locations it at an obstacle right here, because the sustainability of producing  vitality by damming rivers is limited, and the geopolitics of shared hydropower assets within the area are already fraught. Definitely Vietnam can’t energy this degree of financial progress indefinitely by hydroelectricity. So what about coal and pure fuel, its different principal sources of electrical energy manufacturing? As of 2015 Vietnam became a net importer of coal, importing 43.7 million tons in 2019. Imports of pure fuel and crude oil have additionally been rising sharply since 2014.

The underside line is that home manufacturing of fossil fuels can’t maintain tempo with consumption, forcing Vietnam to show to world markets to safe enough uncooked supplies to energy its grid. As in the case of Thailand, as soon as a rustic begins to depend on imports to energy its electrical grid it’s usually when the political class will get severe about transitioning to renewable vitality. Vietnam has thus far adopted this sample fairly carefully.

Diplomat Transient

Weekly E-newsletter

N

Get briefed on the story of the week, and growing tales to look at throughout the Asia-Pacific.

Get the Newsletter

In 2017, Vietnamese regulators authorized EVN to pay a lovely charge of 9.35 cents/kilowatt hour to buy solar energy from unbiased producers. A majority of these feed-in-tariffs have proven to be efficient inducements for jump-starting progress in renewable vitality, under certain conditions. A excessive tariff alone is not going to usually get the job performed. It should be accompanied with institutional and political help, particularly from the implementing company which on this case is the state-owned utility EVN. By way of its subsidiaries, EVN has a monopoly on the transmission and distribution of electrical energy in Vietnam and has traditionally managed round 60 p.c of the producing market. Why then did EVN get onboard with these renewable vitality ambitions, which require it to cede market share to photo voltaic and wind energy firms?

Enjoying this article? Click here to subscribe for full access. Just $5 a month.

Except for the truth that importing coal and pure fuel is driving up the price of manufacturing (which can’t be simply recouped by increased retail charges, as the patron worth of electrical energy in Vietnam is rigorously managed by the federal government), it’s a part of a much larger effort to push by market reforms with the intention to make Vietnam extra funding pleasant. This includes lowering the state’s position in key sectors, and demonstrating that Vietnam is a spot the place non-public capital can generate wholesome returns.

The federal government of Vietnam is conscious that the nation would require massive capital inflows to proceed underwriting its breakneck tempo of financial progress. Within the electrical energy sector alone, EVN’s 2017 Annual Report estimated they would want $22 billion in funding by 2020 to maintain tempo with demand. In the end, that is what has pressured such a dramatic shift within the vitality sector in such a short while interval.  On the one hand vitality imports are driving up manufacturing prices for EVN, and jeopardizing vitality safety by putting the utility on the mercy of worldwide commodity costs.

On the identical time, the nation’s political class is keen to develop the position of personal capital as a driver of progress, and it is aware of that so as to take action it should push by reforms in vital sectors traditionally dominated by state-owned firms. The pace with which EVN has used feed-in-tariffs to onboard renewable vitality from non-public producers ought to ship a optimistic sign to markets. But it surely additionally underscores the truth that relating to renewable vitality transitions, it’s crucial to look past mere technical or coverage options and think about all of the political and financial forces that in the end form the destiny of the sector.



Source link

VC

VC

Related Posts

It’s not just Texas. The entire energy grid needs an upgrade for extreme weather
Energy

It’s not just Texas. The entire energy grid needs an upgrade for extreme weather

March 1, 2021
Oil majors’ green energy pivot hammers Africa’s largest economies
Energy

Oil majors’ green energy pivot hammers Africa’s largest economies

February 28, 2021
Letters, Feb. 27-March 2: Push School District to adopt clean energy goals
Energy

Letters, Feb. 27-March 2: Push School District to adopt clean energy goals

February 27, 2021
Next Post
Crypto exchange Bakkt to go public in $2.1B SPAC deal – PitchBook News & Analysis

Crypto exchange Bakkt to go public in $2.1B SPAC deal - PitchBook News & Analysis

Core Banking Solutions Market to Reach $28.78 Bn, Globally, by 2027 at 14.6% CAGR: Allied Market Research

Core Banking Solutions Market to Reach $28.78 Bn, Globally, by 2027 at 14.6% CAGR: Allied Market Research

Achieve Your Personal Finance Goals With the Help of This Budgeting App

Achieve Your Personal Finance Goals With the Help of This Budgeting App

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Follow us on Facebook

Recommended

mm

Personal finance savvy propels student Caleb Adams to state competition

21 hours ago
Impact of Covid-19 Global Bipolar Membranes Market (2020 To 2027)

Impact of Covid-19 Global Bipolar Membranes Market (2020 To 2027)

4 months ago
Conversion Labs Appoints Leading Telehealth Professional, Dr. Anthony Puopolo, as Chief Medical Officer Nasdaq:CVLB

Conversion Labs Appoints Leading Telehealth Professional, Dr. Anthony Puopolo, as Chief Medical Officer Nasdaq:CVLB

2 months ago
Kiplinger's Personal Finance: Protection for your assets | Business News

Kiplinger’s Personal Finance: Protection for your assets | Business News

3 months ago

Categories

  • Banking
  • Crypto
  • Energy
  • Finance
  • Markets
  • Medical
  • Personal Finance
  • Political
  • Technology
  • Uncategorized
No Result
View All Result

Subscribe to Our Newsletter

Highlights

Personal finance savvy propels student Caleb Adams to state competition

FBI seeking help to find man accused of robbing Macedonia bank

Medical board investigating doctor who dialed into trial mid-surgery

Crypto wallets: What you need to know

How Disinformation Is Shaping The Political Process – NPR

Oil majors’ green energy pivot hammers Africa’s largest economies

Trending

It’s not just Texas. The entire energy grid needs an upgrade for extreme weather
Energy

It’s not just Texas. The entire energy grid needs an upgrade for extreme weather

by VC
March 1, 2021
0

"Not solely will we have to be apprehensive concerning the chilly climate occasions such as you...

Markets Live, Monday 1 March, 2021

Markets Live, Monday 1 March, 2021

March 1, 2021
Coronavirus latest: US hospital cases hit lowest level since November 2 - Financial Times

Coronavirus latest: US hospital cases hit lowest level since November 2 – Financial Times

February 28, 2021
mm

Personal finance savvy propels student Caleb Adams to state competition

February 28, 2021
FBI seeking help to find man accused of robbing Macedonia bank

FBI seeking help to find man accused of robbing Macedonia bank

February 28, 2021

Categories

  • Banking
  • Crypto
  • Energy
  • Finance
  • Markets
  • Medical
  • Personal Finance
  • Political
  • Technology
  • Uncategorized
January 2021
M T W T F S S
 123
45678910
11121314151617
18192021222324
25262728293031
« Dec   Feb »

Recent Posts

  • It’s not just Texas. The entire energy grid needs an upgrade for extreme weather
  • Markets Live, Monday 1 March, 2021
  • Coronavirus latest: US hospital cases hit lowest level since November 2 – Financial Times
  • Personal finance savvy propels student Caleb Adams to state competition
  • FBI seeking help to find man accused of robbing Macedonia bank
  • Home
  • Privacy And Policy
  • About Us
  • Contact Us

© 2020 - News Website Voidchronicle.

No Result
View All Result
  • Home
  • Finance
    • Personal Finance
    • Banking
  • Crypto
  • Energy
  • Markets
  • Medical
  • Political
  • Technology

© 2020 - News Website Voidchronicle.