Coal Phase-Out, Renewables Push, and Nuclear Ambitions

The recently approved latest version of the PDP8 underscores the nation's commitment to phasing out coal usage by 2050, a pledge made in 2023. Coal's contribution to the energy mix is projected to decrease to approximately 17 percent by the end of the decade, a reduction from the 20 percent goal established in the previous year.

The plan also outlines significant growth in renewable energy sources. Solar power is expected to provide 31 percent of the country's energy needs by 2030, while onshore wind is targeted to contribute 16 percent. Achieving these goals will require substantial investment, with the document estimating a need of over US$136 billion.

Furthermore, the new plan includes a target to commission the country's first nuclear power plant by 2035. This follows a January agreement between Vietnam and Russia on nuclear energy cooperation. The Russian nuclear company Rosatom has expressed strong interest in collaborating on a project in Ninh Thuan province.

In line with its goal of achieving a 10 percent economic growth rate by the end of the decade, Vietnam aims to increase its total installed power capacity to a maximum of 236 GW by that time. This represents an increase of over 80 GW compared to the capacity outlined in the 2023 plan.

The country is also focused on preventing a recurrence of the power outages experienced in the summer of 2023. These blackouts caused disruptions for manufacturers and residents alike, exacerbated by extreme heat and drought conditions that strained energy supplies in northern Vietnam.