At a consultation meeting on February 12 regarding the revised National Power Development Plan (PDP VIII) for 2021-2030, with a vision to 2050, energy experts emphasized the urgency of expanding Vietnam’s power generation capacity.

According to Nguyen Anh Tuan, Secretary General of the Vietnam Energy Association, the country’s electricity demand is projected to grow by 10.3%–12.5% between 2026 and 2030, driven by rapid economic expansion.

He stressed the importance of regional contingency planning to prevent localized power shortages, particularly as Vietnam invests in green transportation infrastructure, including the North-South high-speed railway and metro systems.

The transition to renewable energy presents additional challenges, particularly in managing decentralized solar and wind projects. To meet demand, Vietnam will require an estimated $30.7–40 billion in energy investments by 2030, largely from private and non-state sources.

Diversifying energy sources: Nuclear power returns

During the meeting, Minister of Industry and Trade Nguyen Hong Dien confirmed that Vietnam will move forward with nuclear power development, expanding beyond Ninh Thuan to at least three additional locations.

“We will develop both large-scale nuclear power plants and small modular reactors nationwide,” he stated, emphasizing the need for a diversified energy strategy.

Vietnam had previously suspended its nuclear power program in 2016, citing financial concerns. However, with growing energy demand and the limitations of renewables, nuclear energy is now being reconsidered as a long-term solution.

Balancing energy development across regions

Experts also noted the imbalance in energy distribution, with the northern region facing shortages while central Vietnam has a surplus.

Tuan pointed out that Germany successfully operates 96,000 MW of solar power despite having only 900 hours of sunlight annually, compared to Vietnam’s northern region, which receives up to 1,200 hours. He suggested that with proper policies, northern Vietnam could better leverage solar energy to reduce dependency on other sources.

Toward a smarter, competitive energy market

Minister Nguyen Hong Dien also emphasized the importance of modernizing Vietnam’s electricity grid, calling for the widespread implementation of smart grid technologies in the revised PDP VIII.

He outlined plans to establish a competitive electricity market across three levels - generation, wholesale, and retail - with dynamic pricing models that reflect demand fluctuations.

Additionally, the government is working on separating transmission costs from overall electricity prices to attract private investment in energy infrastructure, including cross-regional and intra-regional power transmission projects.

Tam An