Renewable energy: Opportunities and challenges for the NetZero 2050 goal

DNHN - Renewable energy is emerging as a key sector in Vietnam, reflecting the government's strong commitment to reducing greenhouse gas emissions.

Prospects of renewable energy in Vietnam

Mr. Arnaud Dubrac, a renewable energy expert at Expertise France, offered in-depth analyses of the situation and prospects of renewable energy in Vietnam at a recent international forum. Vietnam faces significant challenges as it commits to carbon neutrality by 2050, a goal set within the framework of COP26. According to the World Bank, the country will need about $350 billion in investments to realize these targets. In addition to these commitments, balancing economic development and ensuring energy security remains a difficult issue.

Amidst strong economic growth, electricity demand in Vietnam has been increasing significantly, with a projected annual growth rate of 16-17% from 2016 to 2023. This demand not only exceeds the pace of economic growth but also places considerable pressure on the existing power infrastructure. This creates an urgent requirement for the development of new energy sources and the expansion of the power system to meet the growing consumption needs.

Mr. Dubrac emphasized that supplementing annual power production, such as hydroelectricity, is extremely necessary to meet this demand. Power Development Plan VIII has set many important goals for the development of the energy sector. However, to successfully achieve these goals, a careful assessment of future transmission capacity is needed to ensure that renewable energy can be distributed efficiently.

While 70% of greenhouse gas emissions come from burning fossil fuels, with coal as the primary source, the development of renewable energy will significantly reduce coal production and consumption. This not only contributes to emission reduction but also promotes a greener, more sustainable economy for Vietnam.

Vietnam has made significant initiatives in developing renewable energy, especially wind and solar power. Currently, renewable energy accounts for nearly 40% of the country's total power structure. Notably, the cost of wind and solar power production has dropped sharply; from being over 20% higher than conventional energy in 2010, it is now up to 50% lower. This price drop not only brings clear economic benefits but also enhances the competitiveness of renewable energy in the market.

However, Mr. Dubrac pointed out that renewable energy still faces several challenges, including the variability and unpredictability of these energy sources. These factors pose difficulties for planning and implementing renewable energy projects effectively. The development of energy storage technology and improved forecasting capabilities will be critical to overcoming these barriers.

With strong government commitment and support from international organizations, Vietnam can look forward to a bright future for renewable energy. However, to achieve these ambitious goals, a stable legal framework and policies encouraging sustainable investment in the energy sector are needed. Only then can Vietnam build a strong energy system while achieving sustainable development goals in the future.

Direction for green energy development in Vietnam

Vietnam has set a clear and ambitious vision for green energy development, aiming to increase the share of renewable energy to 47% by 2030. Mr. Arnaud Dubrac stated that this is not only a strong commitment but also demonstrates the government's determination to promote sustainable energy transition. This not only meets the growing demand for electricity but also contributes to reducing greenhouse gas emissions, protecting the environment, and building a green economy.

Support from international organizations, particularly the French Development Agency, will play a crucial role in achieving these goals. The support program will focus on three main levers: first, increasing public access to renewable energy, ensuring that all social classes can benefit from these clean and sustainable energy sources. Second, improving energy efficiency is a key factor in minimizing waste and optimizing existing resources. Finally, developing non-carbon energy sources will not only help Vietnam reduce its dependence on fossil fuels but also create new opportunities for economic development.

Especially, promoting innovation between Vietnam and other countries within the framework of the Just Energy Transition Partnership (JETP) is extremely important. This cooperation will allow Vietnam to access advanced technologies and innovative energy solutions, thereby enhancing the competitiveness of the energy sector regionally and globally.

To achieve these ambitious goals, Vietnam needs to mobilize a large amount of capital. Establishing a favorable legal framework will help attract cooperation and support from various parties, especially in the financial sector. Renewable energy projects often require significant initial investment, so having a clear and transparent legal framework is essential to attract both domestic and foreign investors.

International cooperation also plays a very important role in this process, helping Vietnam learn from other countries about technology, processes, and experiences in the renewable energy sector. Knowledge and technology sharing will not only enhance production and power transmission capabilities but also promote sustainable economic growth in the future. Thus, Vietnam can build a smarter, more efficient, and environmentally friendly power grid.

Renewable energy in Vietnam is making impressive strides, although there are still many opportunities and challenges ahead. Strong government commitment and support from international organizations will be key to achieving the goal of carbon neutrality by 2050. However, the synchronized management and development of energy sources, as well as building a favorable legal framework, will determine the success of this journey. Renewable energy not only brings economic benefits but also makes a significant contribution to environmental protection, ensuring energy security for future generations.

On the path to green energy development, Vietnam is not only aiming to mitigate the impacts of climate change but also affirming its position in the international community. With the right steps and close coordination among stakeholders, the country can become a model in sustainable development, leading the ASEAN region towards a greener future.

Phan Chinh