Vietnam Incorporates Nuclear Energy into Its $136 Billion Strategy to Enhance Power Capacity

HANOI: Vietnam, dependent on coal, seeks to greatly increase its power generation capacity by 2030, emphasising renewable energy and incorporating nuclear power, as outlined in the recently revised national power plan. To achieve the goals, Vietnam would require a total investment of $136.3 billion by 2030, according to the government, which is more than a quarter of its gross domestic product for 2024. The industrial centre of Southeast Asia must rapidly increase its power supply to prevent shortages that have recently alarmed foreign investors. It aims to reduce its coal consumption, which is still its primary energy source. 

According to the plan approved, Vietnam aims to increase its total installed capacity to between 183 and 236 gigawatts by 2030, up from over 80 GW at the close of 2023, the government announced late on Wednesday. To accomplish this, it is reassessing its commitment to nuclear energy, having halted its program in 2016 after the Fukushima nuclear incident in Japan and due to financial limitations. According to the government, the initial nuclear power plants are expected to operate between 2030 and 2035, featuring a total capacity of up to 6.4 GW, along with an additional 8 GW to be incorporated by the middle of the century.

Vietnam revives nuclear energy strategy

Officials stated that Vietnam has been in talks about small modular reactors, which the International Atomic Energy Agency indicates are still in development but would be cheaper to construct than large power reactors. Earlier this year, the government announced it would engage in discussions with international partners regarding nuclear power initiatives, involving countries like Russia, Japan, South Korea, France, and the United States. On Tuesday, Korea Electric Power Corp (015760.KS) launched a new tab showing interest in Vietnam's nuclear initiatives during the chief's visit to the country. Sources familiar with the government disclosed to Reuters that Vietnam is focusing on Russian and Japanese contractors, yet is also receptive to others that provide effective technology and affordable pricing.

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According to the new plan, solar energy is expected to make up 25.3 per cent-31.1 per cent of total capacity by 2030, increasing from 23.8 per cent in 2020, while onshore and nearshore wind power is projected to rise to 14.2 per cent-16.1 per cent from almost zero at the decade's onset, the government stated. The new goals arise after officials highlighted a retroactive adjustment to favourable rates for solar and onshore wind energy producers, raising concerns among investors. According to the plan, coal-fired power plants would represent 13.1 per cent -16.9 per cent of the energy mix, a decline from roughly one-third in 2020, while liquefied natural gas plants would constitute 9.5 per cent- 12.3 per cent of total generation capacity, up from zero currently. The government has established a goal for offshore wind energy ranging from 6 to 17 GW between the years 2030 and 2035. It is intended to achieve 6 GW by this decade, but none have been constructed so far.