Energy transition: "Strictly calculating" to ensure energy security

VCN - The energy crisis, taking place in many parts of the world, has been directly affecting the global economic recovery after the Covid-19 pandemic, increasing pressure on energy transition in many countries, including Vietnam. To ensure energy security, the transition from using primary energies to cleaner forms of energy, Vietnam needs to carefully calculate the route and method based on scientific research.
Top legislator receives Siemens Energy AG leader Top legislator receives Siemens Energy AG leader
Mekong Delta attractive for renewable energy investment Mekong Delta attractive for renewable energy investment
Excess electricity from renewable energy, will electricity prices decrease? Excess electricity from renewable energy, will electricity prices decrease?
Developing renewable energy sources is considered an inevitable trend in the world today, it makes an important contribution to limiting greenhouse gas emissions and protecting the environment. Photo: Nguyen Thanh
Developing renewable energy sources is considered an inevitable trend in the world today, it makes an important contribution to limiting greenhouse gas emissions and protecting the environment. Photo: Nguyen Thanh


Pressure on energy transition

Gas and electricity prices simultaneously increased in all continents, from Europe, Asia to South America. Large-scale power outages in China, shortages of oil and gas in Europe are some outlines of the "energy crisis" taking place in many parts of the world.

Assessing that Vietnam could avoid that "energy crisis", Mr. Ha Dang Son, Director of the Center for Energy Research and Green Growth, said that in the 2020-2021 period, due to the impact of the Covid-19 pandemic, the electricity load was reduced, so Vietnam could ensure sufficient electricity supply.

However, in the future, when the economy reopens, production and business activities would face many difficulties. Currently, power sources have developed very slowly. With existing sources, due to the influence of climate change, the level of water for hydroelectricity was also a big question. As for renewable energy sources such as wind power and solar power, they face great risk of volatility and are difficult to predict.

“Vietnam started to switch to a net energy importer from 2015. Therefore, with the 'energy crisis', the increase of fuel prices leads to an increase of input costs for power plants using imported fuels, putting great pressure on the electricity sector,” said Mr. Ha Dang Son.

In order to ensure national energy security when the domestic supply is not sufficient to meet requirements, the level of energy imports is increasing, energy transition is an increasingly urgent issue for Vietnam, especially when the country is integrating deeply into the global economy.

Nguyen Duc Hien, Deputy Head of the Central Economic Commission, said that over the years, Vietnam had always been active in implementing the commitments of the Agenda 2030 for sustainable development and actively participating in the Paris Agreement within the framework of the United Nations General Convention on Climate Change (COP 21).

In particular, one of the important requirements that Vietnam should fulfill when participating was to promote a strong energy transition to reduce greenhouse gas emissions. Investment decisions and policies must be made to decarbonize the energy sector.

“The implementation of new-generation Free Trade Agreements (FTAs) also poses requirements to promote energy transition. In addition, Resolution 55-NQ/TW dated February 11, 2020 of the Politburo on the strategic orientation of Vietnam's national energy development by 2030, with a vision to 2045, has also identified the major viewpoints, goals, tasks, and solutions on energy transition in Vietnam in the future," said Mr. Nguyen Duc Hien.

"Thinking carefully"

The development of renewable energy sources is considered an inevitable trend in the world today, when it makes an important contribution to limiting greenhouse gas emissions, protecting the environment, as well as reducing dependence on fossil fuels. According to Mr. Ha Dang Son, Vietnam was in the process of energy restructuring in the direction of increasing the proportion of renewable energy sources, but must ensure that electricity costs were suitable to people's payment ability, and ensure adequate supply of high-quality electricity for socio-economic development. This was a huge challenge.

For energy transition, Mr. Pham Nguyen Hung, Deputy Director of the Electricity and Renewable Energy Bureau (Ministry of Industry and Trade), pointed out many limitations and difficulties such as: consequences for operational safety, power system security; a transmission increase of 500 kV (because solar/wind power was mostly developed in the South and Central regions, where there was better potential), the impact on capacity mobilization and the number of capacity increases/decreases of thermal power plants, gas turbines.

These factors increase the cost and production price of electricity, especially in the current condition that some types of renewable energy were still much more expensive than the average cost.

Assoc. Pham Hoang Luong, Director of the Vietnam - Japan International Institute of Science and Technology, said that Vietnam's electric energy system has many differences compared to the world and the set goal must be to ensure adequate supply. Therefore, coal power was still an important form of energy. Of course, in the future, wind power, solar power and hydrogen would play a very dominant role.

The trend of many countries in the world such as China, the US, the EU, is gradually transitioning from coal power to gas and renewable energy. However, Vietnam should pay attention to the implementation time. Thermal power plants in the US have operated for 40 years, are fully amortized and could be converted. And in China, India or Vietnam, factories operating for 10-15 years must calculate how to convert to ensure both economic benefits and power supply for economic development.

“If you want to convert energy and develop renewable energy, storage technology must be a consideration. Currently, there are many solutions to this problem such as: storage batteries, hydroelectricity, along with management technology of electricity consumption such as adjusting the load or using electricity directly from clean power plants in the locality. However, the most important is still the mechanism. For example, a storage system and a mechanism for investors to invest capital confidently, on that basis to plan and ensure the goal of sustainable energy transition. This is not a simple issue,” Prof. Dr. Pham Hoang Luong said.

Thinking that the energy transition should be looked at first from the issue of energy security, Mr. Ha Dang Son said that the transition should be paid attention to in four areas: availability of energy sources; access to energy sources in different regions; people's payment ability and the acceptance of all kinds of energy in localities.

Currently, the global trend is to increase the proportion of renewable energy. It can be identified that wind power, solar power, and hydrogen gas will be the energy sources in the future. However, like it or not, coal power will still play an important background role. The world will not be able to eliminate coal power "overnight".

“Therefore, to switch energy from using primary energies (coal, oil) to cleaner forms of energy, Vietnam must study its roadmap, how to change, the process of converting, the ratio of sources in each period. Or do we just blindly follow “Net zero” - zero emissions? I think it is necessary to be of sound mind and to consider scientific studies,” said Mr. Ha Dang Son.

By Duc Quang/ Binh Minh

Related News

Reducing logistics costs: A solution for competitiveness and attracting import-export goods

Reducing logistics costs: A solution for competitiveness and attracting import-export goods

VCN - With high costs, a lack of large-scale logistics centers, and fragmented infrastructure, the logistics industry still faces many challenges on its path to becoming a backbone of the economy.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
Storm No. 3 "knocks down" many small businesses

Storm No. 3 "knocks down" many small businesses

VCN - According to the General Statistics Office (Ministry of Planning and Investment), looking at the growth results in the third quarter of 2024, it can be seen that the damage in agriculture after Storm No. 3 (Storm Yagi) was the largest. Meanwhile, the number of Vietnamese enterprises operating mainly in the industrial, construction and service sectors, so the impact was not as severe as in the agricultural sector.
Import and export potential growth promised to be vibrant in 6 end- year months, many industries welcome opportunities

Import and export potential growth promised to be vibrant in 6 end- year months, many industries welcome opportunities

VCN- According to Yuanta Securities Company, from now until the end of the year, Vietnam's import and export enjoys many favorable macro factors to recover and accelerate. Many industries will benefit from this momentum such as rubber, textiles, seafood, seascapes, etc.
Comment

Latest News

Embracing green exports: a pathway to enter global supply chains

Embracing green exports: a pathway to enter global supply chains

This shift presents both a challenge and an opportunity for Vietnamese businesses to innovate and enhance their competitive edge in the international arena.
New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

The ministry proposes to issue a decree on the establishment, management and use of the Investment Support Fund to stabilise the investment environment, encourage and attract strategic investors and multinational corporations.
Việt Nam’s durian exports to China plummet by 80%

Việt Nam’s durian exports to China plummet by 80%

This sharp decline has had a direct impact on Việt Nam’s fruit and vegetable export revenue, which stood at US$416 million in January 2025, marking a 11.3 per cent decrease month-on-month and a 5.2 per cent drop year-on-year.
Coconut exports reach 14-year high

Coconut exports reach 14-year high

In 2024, fresh coconut and coconut product exports surpassed US$1 billion, marking the highest figure in the past 14 years.

More News

Shrimp exports grow in the first month of 2025

Shrimp exports grow in the first month of 2025

According to data from the Việt Nam Association of Seafood Exporters and Producers (VASEP), shrimp products recorded a 13 per cent increase in export value in January 2025, reaching a total of $273.3 million.
Rice export prices drop, but decline expected to be short-term

Rice export prices drop, but decline expected to be short-term

Việt Nam’s rice export prices have declined, reaching their lowest level in three years.
Key agro products expected to maintain export growth this year

Key agro products expected to maintain export growth this year

At present, agricultural exports, such as rice, coffee and seafood, have steadily secured a stable place in major global markets.
EU issues 12 warnings against Việt Nam’s food and agricultural exports

EU issues 12 warnings against Việt Nam’s food and agricultural exports

The Việt Nam SPS Office has reported that some Vietnamese export products failed to meet the EU’s stringent standards.
Việt Nam to impose VAT on low-value express-imported goods

Việt Nam to impose VAT on low-value express-imported goods

Việt Nam will end a previous policy that exempted imported goods valued under VNĐ1 million (US$39.4) from taxes when shipped via express delivery.
Exchange rate risks need attention in near future

Exchange rate risks need attention in near future

VCN - Exchange rate developments in 2025 are considered to be quite complicated due to US policies related to trade and investment.
Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

Vietnam kicked off the year with a strong start in trade, exceeding US$63 billion in the first month

VCN - Data from the General Department of Vietnam Customs indicates a softening of both exports and imports in January 2025, relative to the same month in 2024.
Import and export turnover reaches about US$29 billion in the second half of January 2025

Import and export turnover reaches about US$29 billion in the second half of January 2025

VCN - Vietnam's total import and export turnover in the second half of January 2025 (January 16-31, 2025) reached US$28.9 billion, the latest preliminary statistics of the General Department of Vietnam Customs reported.
Market edges up slightly as liquidity remains low

Market edges up slightly as liquidity remains low

Market breadth remained positive, with 161 gainers outnumbering 144 decliners.
Read More

Your care

The system has not recorded your reading habits.

Please Login/Register so that the system can provide articles according to your reading needs.

Latest Most read
Embracing green exports: a pathway to enter global supply chains

Embracing green exports: a pathway to enter global supply chains

This shift presents both a challenge and an opportunity for Vietnamese businesses to innovate and enhance their competitive edge in the international arena.
New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

New policy proposed to prevent transfer pricing, tax evasion of FDI enterprises

The ministry proposes to issue a decree on the establishment, management and use of the Investment Support Fund to stabilise the investment environment, encourage and attract strategic investors and multinational corporations.
Việt Nam’s durian exports to China plummet by 80%

Việt Nam’s durian exports to China plummet by 80%

This sharp decline has had a direct impact on Việt Nam’s fruit and vegetable export revenue, which stood at US$416 million in January 2025, marking a 11.3 per cent decrease month-on-month and a 5.2 per cent drop year-on-year.
Coconut exports reach 14-year high

Coconut exports reach 14-year high

In 2024, fresh coconut and coconut product exports surpassed US$1 billion, marking the highest figure in the past 14 years.
Shrimp exports grow in the first month of 2025

Shrimp exports grow in the first month of 2025

According to data from the Việt Nam Association of Seafood Exporters and Producers (VASEP), shrimp products recorded a 13 per cent increase in export value in January 2025, reaching a total of $273.3 million.
Mobile Version