Electricity Emission Factor: The Basis for Answering Whether Vietnam's Power Grid Emits “Green” or “Brown” Greenhouse Gases

Electricity is the foundation for all economic and social development activities of mankind, but the process of electricity production is accompanied by a large amount of greenhouse gas emissions. Therefore, to understand and control the environmental impact of electricity sources, experts have used a special measure - the electricity emission factor. So electricity emission factor What is it? Let's find out with GREEN IN through the article below!

What is the electricity emission factor?

According to the Official dispatch No. 1726/BĐKH-PTCBT According to the Department of Climate Change, the national grid emission factor for 2023 has been officially announced. This index is determined based on the total amount of CO₂ emitted from power plants compared to the electricity output produced in the same period.

The role of electricity emission factor

Publishing the annual grid emissions factor is an important step forward, bringing many practical benefits to businesses and organizations. This information helps them:

• Calculate CO₂ emissions: Businesses can use emission factors to accurately estimate the amount of CO₂ emitted from electricity consumption. From there, they can build carbon emissions reports and propose appropriate mitigation solutions.
• Building an emissions reduction strategy: Based on the emission factor, organizations have a basis to set goals and plans for more efficient energy use. They can also consider switching to clean energy sources and renewable energy to reduce carbon emissions.
• Meet legal requirements: Understanding and applying emission factors helps businesses comply with current regulations on reporting and reducing greenhouse gas emissions in Vietnam as well as international commitments.

To ensure accuracy and transparency, businesses and organizations should refer to the 2023 national grid emission factor directly from official documents of the Department of Climate Change or the Ministry of Natural Resources and Environment. Using updated data will help manage and reduce emissions more effectively.

Vietnam's power grid emission factor over the years

According to research data, the emission factors of Vietnam's power grid in the period 2014–2023 (tCO₂e/MWh) are respectively: 0,6612; 0,8154; 0,9185; 0,8649; 0,9130; 0,8458; 0,8041; 0,7221; 0,6766; and 0,6592. These figures clearly reflect the change in the power source structure in each period.

Before 2014, the national grid relied mainly on hydropower, so the emission factor remained low. However, from 2015 to 2018, when a series of coal-fired thermal power plants such as Quang Ninh, Nhon Trach, Vung Ang or Vinh Tan came into operation, the amount of emissions increased rapidly, causing the emission factor to increase sharply.

Entering the period from 2019, the emergence of renewable energy sources such as solar power and wind power has contributed to reducing the emission factor, creating a downward trend over the years. However, the emission level of Vietnam's power grid is still high compared to the regional and world levels, the main reason is that coal-fired thermal power still accounts for a large proportion of the power source structure (in 2024 alone, it accounts for 49,5%). Notably, the proportion of coal-fired electricity in 2024 will increase by 17,7% compared to 2023, showing that the process of gradually eliminating coal power is a significant challenge.

Application of electricity emission factor for business

Updating and applying the electricity emission factor is not only a mandatory requirement in the context of greenhouse gas emission management, but also brings many strategic benefits to businesses. This is an important tool to help organizations proactively control emissions, build reduction plans and enhance reputation in the eyes of partners, customers and investors.

• Emissions calculation and inventory tools: The electricity emission factor is the basis for businesses to convert electricity consumption into the corresponding amount of CO₂ emissions. This is especially useful in periodic greenhouse gas inventories, helping businesses understand their "carbon footprint". Thanks to that, emission reports become transparent, scientific and easy to compare over the years, creating a basis for monitoring the effectiveness of emission reduction measures.

• Basis for the emissions reduction plan: By knowing the level of emissions from electricity use, businesses can develop specific emission reduction strategies. This includes improving energy efficiency, optimizing production processes, replacing outdated technology equipment, or gradually shifting to renewable energy sources such as solar and wind power. This not only reduces CO₂ emissions but also saves on long-term operating costs.
• Compliance with legal regulations and international commitments: In the context that Vietnam has introduced many policies to implement its commitment to reduce greenhouse gas emissions at COP26, it is mandatory for businesses to comply with the electricity emission coefficient for reporting. This helps businesses avoid legal risks and at the same time demonstrate their compliance capacity in the global supply chain, especially with strict markets such as the EU, the US or Japan.

• Enhance reputation and brand value: The proactive application of electricity emission coefficients and the implementation of emission reduction solutions are also clear evidence of the social responsibility and sustainable development orientation of enterprises. This helps to enhance reputation and create competitive advantages in the eyes of customers, partners and investors, especially when the trend of "green consumption" and "green investment" is increasing globally.

Conclusion

The above article has helped you learn about electricity emission factor. Hopefully our information will be of some help to you. Don't forget to follow the next articles at GREEN IN for more latest updated information!