The A Current Powerhouse: The Dominance of Hydropower in Vietnam
Spatial distribution of hydropower facilities in Vietnam (Sources)
Vietnam boasts a network of roughly 2,400 rivers, making it a prime candidate for hydroelectric power. With over 720 hydropower plants already operational or under construction, the country ranks as the third-largest hydroelectric producer in Asia, following China and India.
Hydropower remains king among renewable energy sources in Vietnam, contributing a substantial 46.8% to the national electricity grid. This impressive figure, based on a 2023 report by the Vietnam Energy Association, highlights the country’s commitment to clean energy. Hydropower plants come in all sizes, with smaller ones concentrated in mountainous regions and the largest being the Son La Hydroelectric Power Plant, a Southeast Asian giant and the world’s third biggest. This massive facility, boasting a capacity of 2,400 MW, plays a crucial role in powering the nation.
According to Decision No. 2068/QD-TTg, dated November 25, 2015, of the Prime Minister approving Vietnam’s Renewable Energy Development Strategy to 2030, with an outlook to 2050, Vietnam will develop conventional hydropower contributing to the socio-economic development of the localities; on-site power supply, improve the safety of power supply. The production target from hydropower will increase from about 56 billion kWh in 2015 to nearly 90 billion kWh in 2020 and reach about 96 billion kWh by 2030.
Small hydropower potential
Vietnam’s hydropower potential extends far beyond large-scale projects. The country’s vast network of over 2,200 rivers and streams, with 90% being smaller waterways, presents a prime opportunity for developing small hydropower plants. These mini powerhouses, with capacities under 30 MW, hold a technical potential of roughly 25 billion kWh of electricity generation annually, which translates to nearly 7,000 MW of additional power.
The Engine for Vietnam’s REC Trading
As Dr. Doan Van Binh, Director of the Institute of Energy Science at the Vietnam Academy of Science and Technology said: “Hydropower is a crucial part of Vietnam’s energy mix. Not only does it contribute to our national energy security, but it also helps us meet our commitment to reducing greenhouse gas emissions,”.
Hydropower plants hold significant potential for the development of REC trading market in Vietnam. As a country with abundant river systems and a tropical monsoon climate, Vietnam has substantial hydropower resources that can be harnessed for clean energy production. By capitalizing on these resources, Vietnam can enhance its renewable energy portfolio and contribute to global sustainability goals.
The development of the REC trading market would enable hydropower plants to monetize their renewable energy generation by selling certificates to businesses and organizations seeking to offset their carbon footprints. This market mechanism would not only incentivize the expansion of hydropower projects but also attract foreign investment, drive technological innovation, and create economic opportunities in the renewable energy sector. Furthermore, the development of a robust REC market in Vietnam could serve as a model for other Southeast Asian nations, promoting regional collaboration in sustainable energy practices such as Cambodia and Laos.
Sources:
Techstar Western, (2023). The Power of Water: A Closer Look at Vietnam’s Hydroelectric Plants.
Gerard S., Alan D., (2023). We Have Eaten the Rivers: The Past, Present, and Unsustainable Future of Hydroelectricity in Vietnam.
As of October 25, 2023, Vietnam has 492 operational projects with a total capacity of over 8,000 MW that have been awarded I-REC certificates, of which hydropower projects are 124.
