Vietnam lowers power capacity in latest national plan update

1 min readNov 22, 20217:58 AM

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Vietnam eyes to reduce its planned power capacity by 2030 by over 13 percent to 155,700 megawatts in the latest revision of the national power plan.

This equates to a drop of nearly VND800 trillion ($34.48 billion) in investment, Deputy Minister of Industry and Trade Dang Hoang An told a meeting Friday, referring to Power Development Plan VIII for the 2021-2030 period with vision to 2045.

The ministry also lowered the planned capacity for 2045 by 9.7 percent to 333,590 megawatts.

In the update, the ministry has excluded solar power capacity from the country’s energy backup capability to ensure power security.

This is because solar power is unstable, and “a cloud passing by could reduce capacity by 40 percent,” An said.

Without solar power, backup capacity is 43 percent the total, which can ensure system safety.

Some investors and experts also contributed ideas for power development over the next decade.

Mathias Hollander, senior manager at Copenhagen Offshore Partners, said Vietnam could develop 5-10 gigawatts of offshore wind power by 2030, creating $60 billion in added value to the economy.

Strong offshore winds could increase power by 50 percent to the level of hydropower, he added.

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What this means

This significant cut to Vietnam's planned power capacity by 2030, driven by concerns over solar instability, creates both challenges and opportunities for retail operations. While it reduces immediate infrastructure investment, the long-term energy security implications for businesses are paramount. Unlike Panpuri's confident 16-store expansion across Asia or Tiffany & Co.'s specific Singapore opening, this move reflects a more fundamental re-evaluation of national energy strategy. The pressure mounts on businesses reliant on stable power, contrasting with LivWell's growth through specific partnerships. Retailers must now factor potential energy supply constraints into future expansion and operational planning. Watch for the next update on offshore wind power tenders.

Wei Zhang

Questions & Answers

What is the new target for Vietnam's planned power capacity by 2030?

Vietnam aims to reduce its planned power capacity by over 13 percent, setting a new target of 155,700 megawatts by 2030. This change is part of the latest revision to the national power plan.

Why has solar power capacity been excluded from Vietnam's energy backup capability?

Solar power has been excluded due to its instability, as demonstrated by how a passing cloud can significantly reduce its capacity. This decision aims to ensure better power security for the country.

How much investment is expected to be saved by lowering the planned power capacity?

Lowering the planned power capacity is expected to result in a reduction of nearly VND800 trillion, which equates to $34.48 billion in investment. This figure was confirmed by Deputy Minister Dang Hoang An.

What is the potential for offshore wind power development in Vietnam by 2030?

Experts suggest Vietnam could develop 5-10 gigawatts of offshore wind power by 2030. This development could add $60 billion in value to the economy, with strong offshore winds potentially boosting power generation by 50 percent.

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