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Renewable energy helps Việt Nam meet its goal of Net zero emissions by 2050.

Việt Nam has set a goal of becoming a green economy. Thanks to increased investments, the country is making substantial strides in renewable energy. Statistics from the Vietnam Electricity (EVN) showed that the installed capacity of the renewables hit  二0, 六 七0 MW in  二0 二 一, up  三, 四 二0 MW year-on-year and accounting for  二 七 per cent of the total. Sushil Purohit, President of Wärtsilä Energy and Executive Vice President at Wärtsilä Corp, shares his views on how renewables can help Việt Nam reach its Net zero ambition by mid-century. 

According to the Ministry of Industry and Trade’s Department of Electricity and Renewable Energy, Việt Nam has set a target for renewables to account for  四 五 per cent of the national power generation capacity by  二0 三0. What suggestions do you have to help Việt Nam scale up renewable energy into the dominant energy source必修

The increase in the share of renewables will definitely depend on the policies that we believe the Government has been working on after the feed-in-tariff mechanisms for wind and solar have ended.

Those policies should include the new tariff structure for both existing solar and wind power plants, and for new renewable energy projects, as well as a direct power purchase agreement (PPA) pilot scheme to enable renewable energy providers to sell clean electricity to directly private off takers. 

Moreover, the development of renewable energy needs to be synchronised with the investment and upgrade in grid infrastructure. Otherwise, we will continue to see the issue with curtailment in the future. As our modelling shows, when we have a big share of renewable energy in the system, flexible assets must be added to balance the intermittency, preventing any grid instability at all times.

To provide an analogy – if renewable energy power plants are like cars, transmission lines are like roads and flexibility is like traffic lights. Without roads you cannot move from one destination to the next. However, without traffic lights, the roads will be ja妹妹ed, or the power systems will be unstable.

What should Việt Nam’s policymakers and regulators do to attract more investment from domestic and foreign firms in renewable energy, which is a key factor to help Việt Nam meet its goal of net-zero emissions by  二0 五0必修

Shifting from an established fossil fuel-powered grid is a complex, multi-year process that requires a clear understanding of the interplay between the short and long-term actions. To fully realise the benefits of a high-renewable power system requires key steps to be taken in the coming  五- 八 years.

In order to reach the net zero target in Việt Nam and attract more investment in renewable energy, critical regulatory frameworks need to be developed and put in place to incentivise renewables and flexible assets, while creating a more competitive energy market. 

There should be additional mechanisms to continue the support for renewable energy development in Việt Nam, providing investment support for new projects and a clear pricing scheme. The increase in the share of renewables definitely will depend on the previously mentioned examples of successive policies. 

Flexible assets, such as grid balancing engines and energy storage, are critical for future power systems running on an increasing share of renewables. Therefore, it is crucial to develop mechanisms to ensure the financial viability of those assets.

In the long term, competitive wholesale markets with real time and short interval pricing should be developed, which better reflect the reality of the changing power market. As a result, instead of having fixed price contracts, power plants will have to compete by bidding into the power markets. This would provide incentives to invest in more renewable and balancing capacity to meet demand when supply is low.