Vietnam to invest up to $14 billion a year in new power plants

Vietnam to invest up to $14 billion a year in new power plants

HANOI Vietnam will need investment of between $8 billion and $14 billion a year through 2030 to develop new power plants and expand its grid, its deputy industry minister said on Wednesday.

75 per cent of the amount would be spent on new power plants, with priority given to renewable sources and 25 per cent on grid expansion, Deputy Minister of Industry and Trade Dang Hoang An said in a statement.

He said the country will try to raise money from private investors for the new power projects, but he said they wouldn't elaborate.

Vietnam needs to increase its installed power generation capacity by around 10 per cent a year to support its fast-growing economy and population.

Vietnam, pledged last year to be carbon-neutral by 2050, will increase its offshore wind capacity to 7 gigawatts GW by 2030 and to 65 GW by 2045, while cutting the proportion of coal in its energy mix.

Vietnam won't add new coal-fired power plants to its master power development plan, and will only continue coal projects under construction until 2030, An said.

The ministry asked for the government to remove future coal projects with a combined capacity of 14.12 GW from the master power development plan that is being drafted.

Under the latest draft of the master power development plan, Vietnam's total installed power generation capacity would be increased to 121 GW by 2030 and to 284 GW by 2045, from 76.6 GW at the end of last year, according to state media.