Coal-fired power increase to meet Vietnam’s needs

• 5 years ago (2019-03-06)
• David Flin

Asia 846 Coal 274

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Vietnam’s power industry is forecast to see a rise in coal-powered generation as a cheap way of meeting the country’s rapidly rising power demands. Yoel Sano, Head of Global Political and Security Risk of Fitch Group’s Fitch Solutions Macro Research, said that Vietnam’s coal-fired power generation will grow rapidly over the next decade and dominate the country’s power sector expansion. He said: “While the Government also intends to increase LNG imports and non-hydro renewable energy generation capacity, coal would remain the more attractive option over the next decade. We forecast that coal-fired power generation will reach 50.5 per cent of the total consumption power mix by 2028, with gas at 22.5 per cent, hydropower at 22.8 per cent, and non-hydro renewables at 3.8 per cent.”

Dr Nguyen Canh Nam from the Vietnam Energy Association said that coal-fired power generation was a good option for the Vietnamese economic conditions. He said: “Considering the country’s domestic coal resources, the ability to import coal, and the level of greenhouse gas emissions, it is necessary to develop coal-fired power. We expect the Government to largely turn to coal power to meet Vietnam’s increasing power demand, which stems in particular from an expanding industry and manufacturing sector, in order to support continued economic growth. Rapid urbanisation and Government efforts to increase electrification levels to 100 per cent will further boost electricity consumption growth rates.”

While Vietnam has committed to reducing carbon emissions, the Government has said that there are no practical alternatives other than coal to meet the surge in power demand.