The Pha Lai thermal power plant in Hai Duong Province, Vietnam, is expected to be phased out. (Photo: Evngenco2)
To achieve net zero by 2050, Vietnam is implementing an energy transition action plan, which includes phasing out outdated coal-fired power plants while exploring the feasibility of co-firing biomass and ammonia. The plan aims to increase the share of renewable energy generation to 37.7%. It also reaffirms the plan to restart the Ninh Thuan nuclear power plant within five years.
Vietnam to phases out coal plants by 2050
Prime Minister Pham Minh Chinh recently approved a carbon reduction action plan that involves introducing carbon capture systems to older coal-fired power plants or converting them to co-fire with ammonia or biomass. This initiative aims to lower carbon emissions from power plants, with pilot projects encouraging energy producers to adopt clean energy solutions.
Coal plants in Hai Duong and Ninh Binh provinces have been included in the first batch of pilot projects, with a capacity of 540 MW. These plants must meet carbon reduction standards by 2030 or be required to cease operations.
The Vietnamese government aims to completely phase out outdated, inefficient coal plants that cannot adapt to transformation by 2040 and will no longer approve the construction of new coal power plants. And it tries to increase the share of electricity generation from renewable energy to 29.2%-37.7%.
Furthermore, the delayed Ninh Thuan nuclear power project, which had been postponed for eight years due to safety and funding issues, is now required to be completed and operational by 2030.
Vietnam is implementing an energy transition action plan, which includes phasing out outdated coal-fired power plants while exploring the feasibility of co-firing biomass and ammonia. (Graph: RECCESSARY)
Coal-fired power still accounts for nearly half of electricity generation
With the support of power plant transformations and carbon capture technologies, Vietnam’s coal plants are expected to achieve decarbonization by 2050. To reach this goal, the government plans to increase clean energy generation capacity by 4,495 MW to replace nine coal power plants and assist two plants in adopting co-firing technology, for a total capacity of 25,632 MW.
According to Vietnam Electricity (EVN), the country's total electricity output, including imports, is expected to reach 308.7 billion kWh in 2024, a 9.9% increase from the previous year. Coal-fired power generation will account for nearly half, with a growth rate of 17.7%, followed by hydropower, which is expected to increase by about 10%.
The energy transition requires significant capital investment, especially in developing countries like Vietnam. The Ministry of Planning and Investment (MPI) has pointed out that over 50% of the country’s total power capacity comes from private sectors, highlighting the success of the Electricity Law and related incentives. Additionally, electricity prices that accurately reflect the cost of power generation are key to attracting more investment and fostering further development of Vietnam’s electricity market.
Source: The Investor, Vietnam+, Vietnam News