Vietnam is in the process of transitioning to renewable energy, along with strong economic growth, the country's electricity demand continues to increase. According to experts, Vietnam is currently leading Southeast Asia in installed solar power capacity, but the potential is still huge...
According to the International Renewable Energy Agency (IRENA) report, by 2023, Vietnam will record 17 GW of installed solar power capacity. Vietnam leads ASEAN countries in installed solar power capacity, even nearly double the total capacity of countries in the ASEAN region combined.
LEADING ASEAN IN SOLAR ENERGY
Vietnam is in the process of transitioning to renewable energy, in the context that the country's electricity demand continues to increase due to strong economic growth, expected to be 5-7% per year in the coming years.
Ms. Elva Wang, Regional Director of Southeast Asia, Trina Solar, said that economic growth partly thanks to manufacturing is driving energy demand in Vietnam. However, high energy demand combined with extreme hot weather, drought and low hydropower water levels are causing power outages, affecting daily life.
According to Power Plan 8, Vietnam is aiming to gradually phase out coal power generation by 2050 and increase solar power installation capacity to 34%, up from 23% by 2022. The power plan also forecasts the Energy storage will increase to 300 MWh by 2030 and 26 GWh by 2050.
“In 2023, Vietnam's total renewable energy production capacity will reach 21,6 GW. Although Vietnam is currently leading Southeast Asia in installed solar power capacity, the potential is still huge because fossil fuels still account for nearly half of electricity production," Ms. Elva Wang added. .
According to data from the International Renewable Energy Agency (IRENA), in 2023, solar energy accounts for more than one-third of the total installed renewable energy capacity in Vietnam.
Many "big guys" in the energy industry have also targeted the Vietnamese market. In particular, solar panel factories are invested in construction and development to meet the increasing potential and demand for solar power.
A typical example is First Solar, a famous thin-film solar module manufacturer from the US that has also invested in Vietnam. The group has 2 factories in Cu Chi district, Ho Chi Minh City with a total investment capital of 830 million USD (as announced by First Solar) out of 1,2 billion USD of committed investment capital.
In Bac Giang, JA Solar Investment Group (Hong Kong) Limited is investing in 3 projects in Quang Chau Industrial Park and Viet Han Industrial Park with a total registered investment capital of 589 million USD; By April 4, there were 2023 projects in operation in Quang Chau Industrial Park.
In addition, Trina Solar - a provider of smart solar and energy storage solutions, is stepping up production activities at its factory in Northern Vietnam. In August 8, this enterprise operated a factory worth 2023 million USD in Thai Nguyen.
A number of large-scale solar energy projects and projects in the large commercial and industrial (C&I) segment in Vietnam are using energy solution systems from Trina Solar such as the Dam Tra O floating solar power plant. 51MW capacity in Binh Dinh province and the 49MW Vinh Long ground-mounted solar power plant near the southern tip of Vietnam.
Recently, VinFast Company and ON Energy Green Energy Joint Stock Company of KTG Group announced the signing of a strategic cooperation agreement to promote the application of energy storage batteries for rooftop solar power systems in Vietnam. Male. According to the cooperation agreement, ON Energy will become the official distributor of VinFast's energy storage battery system products under the VinFast Energy brand.
THE ELECTRIC VEHICLE MARKET IS FULL OF POTENTIAL
According to HSBC's assessment, electric vehicle manufacturers in Vietnam have been somewhat successful in developing electric motorbikes. Thanks to that, Vietnam's electric motorbike market is the largest in ASEAN and the second largest in the world, only after China.
The research team at HSBC also believes that in the future, Vietnam's electric vehicle market has a lot of room to continue growing with estimates that total annual sales of electric motorbikes and electric cars could increase from less than one million. in 2024 to over 2,5 million in 2036.
However, Vietnamese consumers who switch to electric vehicles will also be more familiar with motorbikes. In fact, the dominance of motorbikes, both in the electric and fossil fuel segments, is not only happening in Vietnam but is a common phenomenon throughout Southeast Asia.
However, by the end of the 2030s, HSBC expects electric motorbike sales to flatten in Vietnam as the domestic motorbike market becomes saturated. At the same time, Vietnam's electric car market has huge untapped potential with more than 60% of people owning motorbikes in 2020, while only 5,7% own cars. Accordingly, the Vietnam Automobile Manufacturers Association predicts that by 2040, Vietnam will have 3,5 million electric cars on the road.
Also according to HSBC, Vietnamese domestic electric vehicle manufacturers, such as industry-leading enterprises like VinFast, will face challenges when replicating the successful model of electric motorbikes in the electric car segment. Because Vietnamese consumers are hesitant about high prices, afraid of the car not having enough electricity, worried about the battery and concerned about the lack of charging station infrastructure.
However, obstacles in the process of popularizing electric vehicles can be resolved through state policy support. For example, Vietnam has implemented registration fee exemption for battery electric vehicles, reduced import tax on battery electric vehicles and exempted corporate income tax for investment projects in battery electric vehicles.
Some industry experts predict that VinFast, with plans to increase annual capacity from 250.000 vehicles to 1 million vehicles, may eventually become the leading exporter of electric vehicles to the rest of ASEAN. In particular, Indonesia is likely to be the main foreign market for VinFast and other Vietnamese electric vehicle manufacturers due to its close geographical location and large population.
The article is sourced from VnEconomy e-magazine: https://vneconomy.vn/viet-nam-van-con-nhieu-tiem-nang-trong-phat-trien-nang-luong-tai-tao.htm