Vietnam

Energy demand is surging in Vietnam due to its rising prosperity and expanding commercial activities. It has one of Asia’s fastest power consumption growth rates, with 10%–12% growth expected yearly through 2030. As of 2020, installed power- generation capacity stood at around 69GW. According to the Power Development Plan 8 (PDP8) capacity is expected to exceed 150GW by 2030.

Net-zero target

In 2020, coal accounted for most of Vietnam’s total power generation. Despite its coal dependence, Vietnam announced at COP26 that it would aim to be net zero by 2050, and also made a commitment nthat it would not build any new coal power capacity, barring projects that were already underway.

According to PDP8, Vietnam will completely phase out all coal-fired power plants by 2050 in line with its climate commitments. However, the combined capacity of coal-fired power plants will increase to 30.1GW by 2030, from 21.4GW at the end of 2020, in a bid to strengthen energy security.

Large coal pipeline

Vietnam’s coal consumption is expected to rise from 94–97 million tonnes (Mt) in 2025 to a peak of 125–127Mt in 2030, before declining to 73–76Mt by 2045. There are currently 6.13GW of coal power plants under construction, including Na Duong II, An Khanh –Bac Giang, Vung Ang I, Quang Trach I, Van Phong I and Long Phu. Another 7.22GW worth of projects are behind schedule due to financial difficulties, including Thanh President, Nam Dinh I, Quang Tri, Vinh Tan III and Song Hau II.

PDP8 states that the Ministry of Industry and Trade will work with investors to get lagging projects mobilised by June 2024. If its efforts fail, they will be considered for termination.

Leading up to 2050, all coal power plants will either be decommissioned or converted to use biomass or ammonia as fuel.

Gas to be new primary source

PDP8 highlights that power plants using locally sourced gas and imported liquefied natural gas (LNG) will be the key power source by 2030. The plan for the gas sector includes prioritising the Block B Ca Voi Xanh gas power project, which will contribute 6.90GW of gas power. This project involves plants such as O Mon II, III and IV (totalling 3.15GW), Central I and II, and Dung Quat I, II and III (totalling 3.75GW). Additionally, O Mon I (0.66GW) will be converted to use Block B gas.

The total capacity of gas power production, including LNG, is expected to exceed 37GW by 2030. The plan also calls for the synchronised development of LNG power plants and LNG import infrastructure. By 2030, the maximum total capacity of LNG power sources is expected to reach 22.40GW. By 2050, the majority of Vietnam’s gas power plants are projected to transition to hydrogen.

The Philippines generates most of its power from fossil fuels, with coal and gas accounting for 58% and 18% of capacity generated in 2021. This was followed by geothermal (10%) and hydropower (9%).

While coal accounts for a large portion of the country’s power generation, new coal project development came to a halt after the nation declared a moratorium on proposals to build new coal-fired power plants in October 2020. Six coal-fired power plant projects are currently underway, approved before October 2020. These projects have a cumulative capacity of 4.6GW and are in various stages of development.