Renewable energy: Steering in the right direction of the times

DNHN - In less than three years, the global energy landscape has undergone a dramatic shift — like a tectonic plate moving beneath the surface.

In 2024 alone, the world added 585 GW of renewable energy capacity — the largest annual increase in history — bringing the total global capacity to 4,448 GW and, for the first time, pushing clean energy past 40% of global electricity production.

Policy breakthroughs such as the U.S. Inflation Reduction Act (IRA), the EU’s REPowerEU package, and China’s mega-scale manufacturing strategy have rapidly transformed renewable energy from a “green” alternative into a “cheap and secure” energy solution. This global acceleration is driven not only by climate goals, but also by practical needs for cost efficiency and supply stability.

Vietnam’s moment in the spotlight

Against this global backdrop, Vietnam once marked an impressive growth phase. Between 2019 and 2021, over 20 GW of solar and wind power were integrated into the grid, positioning the country as a regional leader in renewable energy across Southeast Asia.

However, bottlenecks have emerged. The delayed expansion of the 500 kV transmission grid has led to curtailment issues in key areas such as former Ninh Thuan and Binh Thuan provinces, where up to 30% of capacity has been cut. This has directly impacted investment efficiency and market confidence.

A three-tier strategy for a clean energy future

To meet the annual electricity demand growth rate of 7% while maintaining its net-zero emissions commitment by 2050, Vietnam needs a multi-layered strategy that is both consistent and adaptable.

Infrastructure Tier: Accelerate the progress of key transmission projects like the 500 kV Long Phu – O Mon and Thot Not – Bac Lieu lines, while piloting large-scale Battery Energy Storage Systems (BESS). Allowing third-party involvement in transmission could ease public investment pressures and unlock greater social capital.

Market Tier: Finalize the legal framework for Direct Power Purchase Agreements (DPPA), pilot a domestic carbon trading platform, and expand innovative models such as nearshore wind, floating solar on shrimp ponds, and agrivoltaics — solutions well-suited for the land and development context of the Mekong Delta.

Institutional & Workforce Tier: In the realm of nuclear power, public trust is paramount. Establishing an independent Nuclear Safety Commission, restarting specialized engineering education, and creating a closed-loop financial mechanism for decommissioning and waste management are foundational steps toward sustainably diversifying Vietnam’s power mix.

Energy transition is inevitable, but no real progress will be made without a well-guided helm. When renewable energy is embedded in a comprehensive strategy that balances infrastructure and markets, Vietnam is fully capable of moving steadily toward 2030 — with a cleaner, safer, and more sustainable power system.

Thục Linh - PL