Vietnam encourages private investment in energy sector: PM
Vietnam is in need of capital for the power sector which requires roughly US$10 billion annually through 2030.
The Vietnamese government is helping out non-state investors to invest in the power sector amid rising consumption for economic growth, Prime Minister Nguyen Xuan Phuc said on February 14.
The Ministry of Industry and Trade, the Commission for the Management of State Capital at Enterprises (CMSC), and Electricity of Vietnam (EVN) need to continue mobilizing capital for power projects, mostly prompting private investment, the PM said at the inauguration ceremony of the 600-MW Thai Binh 1 Thermal Power project.
Phuc’s statement indicates that Vietnam is in need of capital for the power sector which requires roughly US$10 billion annually through 2030.
Private capital has become an indispensable option for Vietnam in the context of public debts reaching the ceiling and double-digit growth in energy demand. As a result, the country needs to call for flows of domestic and cross-border private capital into the energy sector, the World Bank said in a report released last month.
Coal-fired power and concerns
Thai Binh 1 Coal-fired Power Plant, located in the northern province of Thai Binh, is put into operations in the context that Vietnam is intensifying the generation of thermal energy to feed its fast growth.
With an investment of US$1.27 billion from the Japanese official development assistance (ODA), the plant is designed to generate between 3.6 and 3.9 billion kWh/year.
With this plant, the number of coal-fired power plants hits 29 with total capacity of 18,600 MW, making up 38% of the country’s total capacity.
At present, Vietnam’s total power capacity reaches 48,000 MW, ranking second in Southeast Asia and 31st in the world. The country’s consumption increases on average 10%-11% annually.
To ensure enough electricity for the economic growth, Vietnam has focused on hydropower and thermal power while trying to tap potential of renewables like solar and wind. However, the ratio of coal-fired power has risen over the past years. The ratio might hit 53% by 2030.
Foreign experts, including the World Bank Country Director for Vietnam Ousmane Dione and Ambassador - Head of Delegation of the European Union to Vietnam Bruno Angelet, have warned the country of long-term impacts on the environment from coal fuelled power plants, noting that Vietnam should not barter sustainable environment for temporary economic benefits.
Vietnamese PM Nguyen Xuan Phuc attends the inauguration ceremony of Thai Binh 1 Thermal Power Plant. Photo: Chinhphu
|
Phuc’s statement indicates that Vietnam is in need of capital for the power sector which requires roughly US$10 billion annually through 2030.
Private capital has become an indispensable option for Vietnam in the context of public debts reaching the ceiling and double-digit growth in energy demand. As a result, the country needs to call for flows of domestic and cross-border private capital into the energy sector, the World Bank said in a report released last month.
Coal-fired power and concerns
Thai Binh 1 Coal-fired Power Plant, located in the northern province of Thai Binh, is put into operations in the context that Vietnam is intensifying the generation of thermal energy to feed its fast growth.
With an investment of US$1.27 billion from the Japanese official development assistance (ODA), the plant is designed to generate between 3.6 and 3.9 billion kWh/year.
With this plant, the number of coal-fired power plants hits 29 with total capacity of 18,600 MW, making up 38% of the country’s total capacity.
At present, Vietnam’s total power capacity reaches 48,000 MW, ranking second in Southeast Asia and 31st in the world. The country’s consumption increases on average 10%-11% annually.
To ensure enough electricity for the economic growth, Vietnam has focused on hydropower and thermal power while trying to tap potential of renewables like solar and wind. However, the ratio of coal-fired power has risen over the past years. The ratio might hit 53% by 2030.
Foreign experts, including the World Bank Country Director for Vietnam Ousmane Dione and Ambassador - Head of Delegation of the European Union to Vietnam Bruno Angelet, have warned the country of long-term impacts on the environment from coal fuelled power plants, noting that Vietnam should not barter sustainable environment for temporary economic benefits.
22:48, 2024/05/02
Four- and five-star hotels to boom in Hanoi as tourism rebounds
Hanoi is unlikely to see any new three-star hotel projects in the next three years, as the market favors the upper end.
19:49, 2024/05/02
Vietnam’s manufacturing sector returns to growth in April
The solid expansion in new orders helped lead to a return to growth of manufacturing production in Vietnam.
06:58, 2024/05/02
Vietnam on track for Q2 export breakthrough, economist predicts
Vietnamese companies have orders in hand until the end of the third quarter.
20:40, 2024/05/01
Unlocking the tourism potential of Hanoi's suburbs
Located about 30 kilometers southwest of Hanoi, Quoc Oai District boasts a rich heritage of over 200 distinctive historical, cultural, architectural, and artistic relics.
13:18, 2024/05/01
Vietnam's tourism sees 58.2% increase in int’l visitors
In April, the estimated number of international visitors to Vietnam reached 1.55 million, up 58.2% from the same period last year.
17:16, 2024/04/29
Expectations for Vietnam’s real estate market to flourish
The Government, ministries, and businesses are urged to implement solutions to solve existing major issues hampering the development of the real estate market.
- Training: key to enhancing competitiveness of Vietnam's tourism workforce
- Cooperation and investment: key to effective tourism promotion in Vietnam
- IT training urged to focus on semiconductors
- Hanoi Great Souvenir Fair 2024 to take place next week
- As orders rise, Vietnamese textile firms see better prospects in 2024
- C.bank to auction nearly 17,000 gold taels on April 22