The Vietnamese government plans to generate 75% of national power production capacity and 70% of actual production from renewables by 2045, following the 2021 United Nations Climate Change Conference (COP 26). Under COP 26, Vietnam will make a shift from fossil fuels to clean and renewable energy.
The Ministry of Industry and Trade intends to raise wind and solar power capacity by 333% and 167%, respectively, above Power Development Plan VII in the draft 10-year Power Development Plan VIII (2021-2030 with a vision until 2045). Rooftop panels will contribute to the solar capacity.
Vietnam has a large potential for renewable energy development, with around 217 gigawatts of onshore wind power, 160 gigawatts of offshore wind power and 434 gigawatts of solar power (including rooftop panels), according to Tran Van Tung, the Deputy Minister of Science and Technology.
The development of renewable energy will bring Vietnam many benefits including lowering operating costs because renewable energy costs are set to decline in the upcoming decades, while those of fossil fuel sources are set to rise.
According to the Electricity and Renewable Energy Authority, as the proportion of renewable energy capacity increases, more investments are needed in transmission capacity.