Transition to a carbon-neutral electricity system by 2050 could help Vietnam save about 26 billion euros per year, according to Finnish technology group Wartsila, a global leader in innovative technologies and lifecycle solutions for the marine and energy markets.

In a recent talk with Tuoi Tre (Youth) newspaper, the Wartsila representative made the projection and highlighted the use of renewable energy sources in Vietnam towards realizing Vietnam’s international commitment to achieving net zero emissions by 2050.

To reduce greenhouse gas emissions by prioritizing the development of renewable energy and storage systems, it is necessary to develop flexible power plants that can quickly change capacity to help balance the power supply.

By applying this way from now until 2050, Vietnam will likely save about 26 billion euros per year.

In order to respond to the possible instability of renewable energy sources, the Vietnamese power system needs to use about 150 MW of flexible power sources alongside every GW of renewable energy capacity.

In its recent report ‘Crossroads to Net Zero,’ Wartsila suggests and evaluates two pathways to achieve net-zero emissions in the power sector by 2050.

In pathway 1 (the Renewables and storage pathway), renewables and storage relies solely on the expansion of variable renewable energy, namely solar and wind, and energy storage systems.

Meanwhile, pathway 2 (the Balanced pathway), incorporates balancing power plants, for example flexible engine power plants, alongside renewable energy and energy storage systems.

“The findings show that the Balanced pathway achieves net zero faster and more cost-effectively, with projected savings of over 42 percent (65 trillion euros), 21 percent lower emissions, and with half the land use for renewables from 2025 to 2050 compared to the Renewables and storage pathway,” the report said.

This significant cost reduction is mainly thanks to minimized curtailment and reduced renewable energy overcapacity, which are enabled by using balancing power plants, providing additional flexibility, and optimizing the overall system.

Wartsila noted that Vietnam’s Power Development Plan 8 has shown positive intent by raising the renewable power targets compared to prior plans. 

“It’s clear that to realize net zero, Vietnam has to transform its use of energy, beginning with the power sector,” the group stated.

According to the plan, flexible power sources in the total power structure in Vietnam will reach 300 MW by 2030 and the figure will sharply soar to 46,200 MW by 2050. 

Pham Minh Thanh, Wartsila country director for Vietnam, recommended that Vietnam should create conditions for rapid expansion of renewable energy by upgrading the power transmission systems, and streamlining procedures for investing in inter-regional power grid infrastructure nationwide.

It is necessary to quickly apply flexible technologies to balance power sources and maintain the grid’s stable and sustainable operation, while restructuring the electricity market by raising the proportion of renewable energy, among other solutions.

As Vietnam is on its way to realize its commitment of net zero emissions by 2050, it is important now to ensure that the national power plan is implemented on schedule, the country director underscored.

According to a report by the International Renewable Energy Agency, Vietnam has a solid foundation in renewable energy with a total installed capacity of over 46,000 MW by 2023, the highest in Southeast Asia.

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