Electricity in Vietnam in 2023/2024

In the past 12 months, from November 2023 to October 2024, Vietnam's electricity consumption has been largely reliant on fossil fuels, with more than half (56%) of its electricity generated from fossil sources. A significant portion of this, almost half the total electricity, is sourced directly from coal. In contrast, low-carbon and clean energy sources constitute a substantial 44% of Vietnam's electricity supply. Hydropower accounts for almost a third of the total electricity, making it the most significant low-carbon source. Solar and wind energy contribute nearly 9% and 4% respectively, playing crucial roles in the country’s clean energy mix, while gas is responsible for about 8% of the electricity. Despite the considerable efforts towards clean energy, the continued reliance on fossil fuels remains a challenge, especially given the environmental impacts and climate change implications associated with them.

Suggestions

For Vietnam to increase its low-carbon electricity generation, learning from countries with significant clean energy contributions can be highly beneficial. Countries like France and Slovakia serve as remarkable examples, given their success in nuclear energy, which constitute 68% and 60% of their electricity mix respectively, highlighting the potential of nuclear power to provide a stable and substantial clean energy foundation. Similarly, Vietnam can take cues from Denmark and Uruguay, where wind energy generates 59% and 33% of electricity respectively, to bolster its wind power capabilities. Additionally, the gradual increase in solar electricity in countries such as Greece and Chile could provide valuable insights into expanding Vietnam's already growing solar sector. These examples underline the importance of strategic investments and infrastructure development aimed at boosting nuclear, wind, and solar contributions to the national grid.

History

Historically, Vietnam's journey towards low-carbon electricity has seen significant shifts across the decades. In the early 2000s, hydropower experienced moderate growth, with incremental increases of around 3 to 4 TWh. Entering the 2010s, hydropower saw dramatic surges, particularly in 2011 and 2012, with over 12 TWh increase each year, although a setback occurred in 2015 with a notable decline. This trend of fluctuation continued, peaking in 2017 with a remarkable 22 TWh increase. 2019 marked a transformative year with a simultaneous decline in hydropower offset by a significant entrance of almost 5 TWh from solar. The next two years saw robust expansions, especially in solar electricity, which increased substantially in 2021. More recently, a slight reduction in hydropower in 2023 was compensated with a partial recovery in 2024, demonstrating Vietnam's resilient and adaptive strategy towards clean electricity progression. Wind energy also made a notable entry in 2022, adding nearly 6 TWh, further diversifying and strengthening Vietnam’s low-carbon energy portfolio.

Electricity Imports and Exports

Balance of Trade

Data Sources