Vietnam scraps first nuclear power plant plans

• 8 years ago (2016-11-11)
• David Flin

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Vietnam’s government has decided to scrap its plan to build the country’s first nuclear power plants, because other energy sources have become cheaper, and slower economic growth has reduced demand. The official Vietnam News Agency reported that the government will submit its proposal to cancel the project to the National Assembly, which is expected to ratify it later this month.

In 2009, the National Assembly ratified the plan to build two nuclear power plants with a combined capacity of 4000 MW in the central province of Ninh Thuan. The government had selected Rosatom and Japan Atomic Power to build the plants, and signed a deal to borrow $8 billion from Russia for building the first facility.

Construction was scheduled to start in 2014, but has been delayed several times. In 2015, officials said construction would be delayed until 2019, citing safety concerns following the Fukushima Daiichi accident. Duong Quang Thanh, Chairman of the state-run Electricity of Vietnam Group overseeing the project, said: “Nuclear power is now less competitive than other power sources, and is not urgently needed.” He said that oil and coal are much cheaper now than when the project was first proposed.

Economic growth has also been slower than forecast, resulting in a demand for power that is lower than had been expected. Consumption is now forecast to grow 11 per cent a year between 2016 and 2020, compared with a previous forecast of 17-20 per cent.

The Ministry of Industry and Trade said Vietnam will be more reliant on coal for power generation for several years. Coal-fired power plants are expected to account for around 55 per cent of the country’s total installed capacity in 10 years, up from about 30 per cent currently, according to the ministry.