Vietnam is battling electricity cuts caused by a heatwave that has exposed structural and bureaucratic problems limiting available power to half of installed capacity and crimping efforts to unlock $15.5 billion in global climate funding.
, among others, but has struggled to upgrade its grid, a key step to satisfy demand and lure companies diversifying from China and elsewhere.
Despite a recent solar development binge, the Southeast Asian nation home to 100 million people is reliant on coal and hydropower. Coal-fired plants accounted for about 60% of electricity output last week, EVN data showed, and May imports of coal, at 4.5 million tonnes, were the highest since June 2020, according to Refinitiv data.
Water levels at almost all northern hydropower plants are too low for them to run at more than a quarter of designed capacity, the industry ministry has said.While solar forms a quarter of Vietnam's installed capacity after a surge in investment in renewable power in the previous decade, little of that has been tapped, due to delays in project approvals, lengthy tariff talks and regulatory uncertainty.
Partly as a result, solar's contribution to Vietnam's power mix is set to drop to 8.5% of installed capacity by 2030, excluding rooftop panels, as other energy sources gain share under a power plan for this decade approved in June.Wind power projects, slowed by administrative hurdles and the COVID-19 pandemic, saw about 12.
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