What we do
Viet Nam’s fast-growing economy is the main driver for the rapidly increasing electricity demand throughout the country over the past years. Viet Nam’s annual electricity production increased more than tenfold, from 8.6 TWh in 1990 to 164 TWh in 2015. The annual increase in this period was between 12-15%, almost twice as high as the GDP growth rate. Viet Nam’s overall installed electricity generation capacity was 39 GW in 2015. Hydropower, coal and natural gas are still the dominant energy sources for power production.
According to the National Power Development Plan (PDP VII revised, March 2016), Viet Nam aims to increase its renewable energy share in power production substantially. The overall percentage figures for 2020 and 2030 include small hydro power.
With regards to energy consumption, industry, transportation and residential areas are the three biggest energy consuming sectors.
Source: Energy Consumption by Sector, Institute of Energy
However, the market for renewable energies in Viet Nam is either mostly undeveloped or at a very early stage.
The main barriers to substantial private sector investments into both renewable energy and energy efficiency infrastructure include: i) low electricity price; ii) limited access to financing; iii) low capacities for commercial project development; iv) the lack of reliable data; v) the complex administration structure and legal framework.
The MOIT/GIZ Energy Support Programme (ESP) is supporting the Vietnamese Government in developing renewable energy and energy efficiency markets by addressing the above barriers.
A number of projects have been implemented or are currently ongoing:
• Wind Energy: 2009-2012
• Bioenergy: 2012-2015
• Support to the Up-scaling of Wind Power (DKTI Wind): 2014-2018
• Renewable Energy and Energy Efficiency (4E): 2015-2018
• RE Project Development Programme (PDP): 2015 - 2018
• Smart Grids for RE & EE: 2017-2021