Renewable Energy Policy in Vietnam

Abstract

The Vietnamese government has initiated systematic policies for promoting renewable energy since the early 2000s, and in 2017, the country became the first major developing economy in East Asia to give up developing nuclear power. However, to meet the growing demand for lower-emission electricity, Vietnam needs market-based policies in order to build a favorable environment for expanding renewable energy. With stronger commitments from the government, more effective policies such as renewable portfolio standard frameworks and auctions are expected to deliver more renewable electricity to customers. With increasing penetration of solar and wind power causing congestion on the grid, there are considerable opportunities for building local and smart grids that could facilitate more reliable and secure electricity services. Abundant hydroelectric capacity offers large potential storage capacity that can also facilitate the expansion of variable solar and wind renewable energy.